Analyst upgrades:

• Roth Capital upgraded MicroStrategy (NASDAQ: MSTR) to Buy from Hold and raised its target to $90 from $70, citing encouraging Q2 results, new product cycle catalysts, a lift from Europe, and cost reductions.
• William Blair upgraded Costco (NASDAQ: COST) to Outperform from Market Perform after meeting with management as it believes sales and earnings could beat expectations over the next year.
• Credit Suisse upgraded Novellus (NASDAQ: NVLS) to Outperform from Neutral and raised its target to $29 from $23. The firm cites higher Samsung capex forecast, high leverage, and low expectations.
• Home Properties (NYSE: HME) and Equity Residential (NYSE: EQR) were upgraded to Outperform from Market Perform at FBC Capital, while Douglas Emmett (NYSE: DEI) and Duke Realty (NYSE: DRE) were raised to Market Perform from Underperform.
• Agilent (NYSE: A) was upgraded to Overweight from Equal Weight at Barclays.
• Cytec Industries (NYSE: CYT) was upgraded to Buy from Hold at KeyBanc.

Sciele Pharma Inc. (NASDAQ: SCRX), a specialty pharmaceutical company, closed at $26.54. SCRX has a Sular line extension PDUFA on November 2. Roth Capital Partners has a Buy rating and $33 price target on SCRX. Roth says, "Pipeline strong, future looks bright, SCRX has eight products in different stages. One recently approved (Fenofibrate), two under review at the FDA (head lice and "new sular"), and five in Pivotal Ph 3 trials." SCRX November option implied volatility of 59 is above its 26-week average of 37 according to Track Data, suggesting larger risk.

MicroStrategy Inc. (NASDAQ: MSTR) is recently up $11.43 to $98 in pre-open trading. MSTR reported 3Q EPS of $1.51 verses consensus estimates of $1.11. Cowen says, "despite the strong license performance in the Q, the company is suffering from negative license growth year to date off a weak comp." MSTR over all option implied volatility of 49 is 42 according to Track Data, suggesting larger risk.

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