King Pharma (NYSE: KG) is recently up 25c to $10.49.

KG, a vertically integrated pharmaceutical company with September total revenues of $544 million. It has been rumored as a takeover candidate in the past.

KG call option volume of 5,241 contracts compares to put volume of 366 contracts. KG January option implied volatility of 70 is above its 26-week average of 46 according to Track Data, suggesting larger upside price fluctuations.

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

Comcast (NASDAQ: CMCSA) recently down 12c to 20.43. Goldman says: "We believe that it is likely that CMCSA submits a bid in the 700 MHz auction by the 12/3 deadline, either by itself or with a partner(s) because it is a long term imperative." CMCSA December and January option implied volatility of 27 is below its 26-week average of 32 according to Track Data, suggesting decreasing risk.

King Pharma (NYSE: KG) is recently up 37c to $10.71 on renewed buyout chatter. KG December 12.5 calls have traded 103 times on transaction volume of 4,259 contracts, above its open interest of 796 contracts. KG December & January option implied volatility of 65 is above its 26-week average of 43 according to Track Data, suggesting option traders expect KG to trade above $12.75 in the next three weeks.

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

MOST NOTEWORTHY: Amgen (AMGN), Wendy's (WEN), webMethods (WEBM), Global Crossing (GLBC) and International Securities Exchange (ISE) topped out today's noteworthy downgrades:

• A host of companies shot down Amgen Inc (NASDAQ: AMGN) today:
• Lazard cut the drugmaker to Sell from Buy while Citigroup cut them to Sell from Hold. JP Morgan and HSBC downgraded Amgen to Neutral from Overweight while Morgan Stanley cut shares to Equal-Weight from Overweight.

• Elsewhere, Wendy's Int'l (NYSE: WEN) was downgraded by Citigroup to Hold from Buy on valuation.

• Deutsche Bank cut shares of webMethods Inc (NASDAQ: WEBM) to Hold from Buy as they expect the software AG merger to go through.

• Global Crossing (NASDAQ: GLBC) was downgraded to Hold from Buy at Deutsche Bank following the company's Q1 miss and revised guidance.

• The International Securities Exchange (NYSE: ICE) was downgraded at Banc of America given potential risks to the Eurex bid. They are not counting on rival bids and recommend moving to the sidelines...

OTHER DOWNGRADES:

• HSBC downgraded Rio Tinto (NYSE: RTP) to Neutral from Overweight.

• Morgan Stanley downgraded King Pharma (NYSE: KG) to Equal Weight from Overweight. Pacific

• Crest downgraded Actions Semiconductor (NASDAQ: ACTS) to Sector Perform from Outperform.

• Raymond James downgraded ServiceMaster Co (NYSE: SVM) to Market Perform from Outperform.

• Soliel downgraded Tweeter Home Entertainment (NASDAQ: TWTR) to Hold from Buy.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required)

MOST NOTEWORTHY: Brinker International Inc (EAT), National Semiconductor Corp (NSM), and three select transportation stocks were today's more notable upgrades:

• UBS upgraded Brinker International Inc (NYSE: EAT) to Buy from Neutral with a $38 target, citing valuation following the recent sell-off.

• National Semiconductor Corp (NYSE: NSM) was upgraded to Accumulate from Source of Funds with a $28 target at ThinkEquity, following the company's Q3 report and guidance.

• Three transportation companies were upgraded at Stifel: Con-Way Inc (NYSE: CNW), FedEx Corp (NYSE: FDX) and Universal Truckload Services Inc (NASDAQ: UACL) were upgraded to Buy from Hold to reflect attractive valuations.

OTHER UPGRADES:

• Credit Suisse upgraded Office Depot, Inc (NYSE: ODP) to Outperform from Neutral.

• JMP Securities upgraded Texas Instruments Inc (NYSE: TXN) to Market Outperform from Market Perform ahead of the mid-quarter upgrade. Texas Instruments was also upgraded to Buy from Hold at Stifel.

• Calyon Securities upgraded Halliburton Co (NASDAQ: HAL) to Add from Neutral on valuation.

• Bernstein upgraded Charles Schwab Corp (NASDAQ: SCHW) to Outperform from Market Perform.

• BMO Capital Markets upgraded Cognos Inc (NASDAQ: COGN) to Outperform from Market Perform. BMO believes Cognos will receive additional business due to Oracle Corp's (NASDAQ: ORCL) acquisition of Hyperion Solutions Corp (NASDAQ: HYSL) and also see a greater chance that Cognos itself could be acquired.

• Cowen upgraded King Pharmaceuticals (NYSE: KG) to Neutral from Underperform citing Skelaxin's new label approval, which likely delays a generic.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).