Cardiome Pharma (NASDAQ: CRME) closed at $8.66 Monday.

Phase 2b data is expected soon for a oral formulation of Kynapid (vernakalant), a drug to restore normal heart rhythm in patients with arterial fibrillation.

CRME July option implied volatility of 195 is above its 26-week average of 131 according to Track Data, suggesting larger price movement.

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

MOST NOTEWORTHY: Sony, FiberTower and Cardiome Pharma were today's noteworthy downgrades:

• Goldman lowered its rating on Sony (NYSE: SNE) to Neutral from Buy, citing the yen strength and the economic slowdown.
• Merriman downgraded shares of FiberTower (NASDAQ: FTWR) to Neutral from Buy following the CEO resignation due to added uncertainty. They do not anticipate the valuation to improve from current levels until a permanent CEO is named.
• Cardiome Pharma (NASDAQ: CRME) was downgraded to Neutral from Buy at Merrill following the FDA's decision to delay the Kynapid drug.

OTHER DOWNGRADES:

• American Express (NYSE: AXP) was downgraded to Hold from Buy at Citigroup.
• JC Penney (NYSE: JCP) was downgraded to Neutral from Buy at Piper.
• Merrill added Deutsche Bank (NYSE: DB) to its Bank Least Preferred List.