MOST NOTEWORTHY: American Eagle, Hologic and British Airways were today's noteworthy downgrades:

• Friedman Billings downgraded American Eagle (NYSE: AEO) to Underperform from Market Perform citing slowing top-line growth, difficult macro-environment, and the challenging women's category.
  
• Soleil cut Hologic (NASDAQ: HOLX) to Hold from Buy as it believes the cancellation of the FDA Radiological Devices Panel means a further delay in the tomosynthesis pre-market approval application.
  
• ABN downgraded shares of British Airways (Other OTC: BAIRY) to Sell from Hold as it believes the recent rally in the face of higher oil prices is unjustified. Shares were also lowered at Deutsche Bank to Sell from Buy as it believes the company may not be able to raise ticket prices enough to offset higher fuel costs.

OTHER DOWNGRADES:

• ArthroCare (NASDAQ: ARTC) was cut to Accumulate from Buy at ThinkPanmure.
  
• ING downgraded J Sainsbury (Other OTC: JSAIY) to Sell from Hold.
  
• RBC Capital downgraded Ceragon Networks (NASDAQ: CRNT) to Sector Perform from outperform.

On December 17th, StreetInsider.com wrote about a story in the New York Post that had shares of medical equipment company Arthrocare (NASDAQ: ARTC) trading down. According to StreetInsider:

According to the Post, about 75% of Arthrocare's US spinal unit business came from DiscoCare, although Arthrocare hasn't mentioned the unit's reliance on DiscoCare. The report also said the Massachusetts Attorney General's office is looking into the companies' relationship.

On Friday, Arthrocare defended itself, calling the reports materially inaccurate. Arthrocare also said it contacted the Massachusetts Attorney General's office and was informed that there was no such investigation.

Why am I quoting StreetInsider's story on a New York Post story rather than the New York Post itself? The Post piece on Arthrocare is no longer anywhere to be found! At one time, the story was located at this URL: http://www.nypost.com/seven/12112007/business/surgical_device_makers_growth_fueled_by__707429.htm

But now that's a dead link! Since then, Arthrocare has acquired DiscoCare, and the company has become a target of short-selling stock sleuth Andrew Left of Citron Research.

But it's hard to know what to make of the New York Post's vanishing act. Zack's equity analyst Gregory Aurand wrote this about the stock in the wake of the New York Post article:

ArthroCare (NASDAQ: ARTC), a medical device company, is recently down $2.48 to $52.42. ARTC December 50 straddle is priced at $6.10. ARTC call option volume of 1,233 contracts compares to put volume of 8,267 contracts. ARTC January option implied volatility of 64 is above its 26-week average of 41 according to Track Data, suggesting larger downside risks.

Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.