Analyst Upgrades

• Hudson Square upgraded Take-Two (TTWO) to buy from hold, citing the better-than-expected Q3 report and increased guidance.
• Keybanc upgraded The Buckle (BKE) to hold from underweight given the potential for a special dividend in the near term.
• Stifel Nicolaus upgraded K-Sea Transportation (KSP) to hold from sell, citing KA First Reserve's $100M equity investment.
• Gold Fields (GFI) was upgraded to overweight from equal weight at Morgan Stanley.
• James Hardie NV (JHX) was upgraded to neutral from reduce at Nomura.

Analyst upgrades:

• Barclays upgraded Exxon (XOM) to overweight from equal weight based on a higher production growth outlook. The firm, which raised its target to $92 from $90, expects Exxon to have organic growth of more than 3% in 2010 and an average growth rate of 2.6% between 2009 and 2013.
• Kaufman Bros. upgraded Palm (PALM) to buy from hold citing the recent pullback in shares and indications that Verizon (VZ) will carry webOS phones as early as 1H10. The firm has a $16 target on the stock.
• Piper Jaffray raised Medicis (MRX) to neutral from underweight and raised its target to $20 from $16. Following a management meeting, Piper said they have increased confidence in Soldyn risk and LipoSonix's safety profile.
• Illinois Tool Works (ITW) was upgraded to buy from neutral at UBS.
• Devon Energy (DVN) was upgraded to outperform from market perform at Wells Fargo.
• Carmike Cinemas (CKEC) was upgraded to buy from neutral at Merriman.

W.R. Grace (NYSE: GRA) closed at $26.18 Monday.

In a hearing scheduled for mid-January, GRA lawyers will attempt to persuade a Delaware bankruptcy judge to value worthless tens of thousands of claims stemming from lawsuits against GRA, which used asbestos for fireproofing products.

GRA February option implied volatility of 61 is above its 26-week average of 57 according to Track Data, suggesting slightly larger price risk.

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

Dow Chemical (NYSE: DOW), a diversified chemical company, is recently up $1.42 to $46.17 after Bloomberg confirmed DOW canceled an analyst meeting. DOW has been the frequent subject of private-equity takeover chatter and the cancellation is refueling the conjecture. DOW call option volume of 27,544 contracts compares to put volume of 5,011 contracts. DOW November option implied volatility of 36 is above a level of 28 from twenty minutes ago, according to Track Data, indicating traders positioning themselves for a higher share price.

W.R. Grace (NYSE: GRA), supplier of specialty chemicals & industrial applications, is recently up $1.12 to $30.06 on unconfirmed LBO chatter. GRA call option volume of 9,562 contracts compares to put volume of 724 contracts. GRA October 30 straddle is at $2.00. GRA November option implied volatility of 61 is above its 26-week average of 51, according to Track Data, suggesting traders are positioning themselves for a higher share price.

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