American Axle (NYSE: AXL) closed at $2.01. AXL entered into a waiver and amendment to the company's credit, facility, which provides the company a waiver of its financial covenants through July 30, 2009. AXL options were active on July 29 with 30,608 contracts trading. AXL August 2.5 straddle is priced at 1.40, October 2.5 straddle is priced at $2.35 suggesting large price movement.

Patterson-UTI Energy (NYSE: PTEN) closed at $14.23. PTEN, an operator of 60 drilling rigs, is expected to report Q2 EPS today. PTEN August option implied volatility is at 55, September is at 49; below its 26-week average of 64. PTEN options were active on July 29 with 6,452 contracts, trading according to Track Data.

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

MOST NOTEWORTHY: Cott Corp, Hartford Financial, Allstate and Valero Energy were today's noteworthy upgrades:

• Lehman upgraded Cott Corp (NYSE: COT) to Equal Weight from Underweight citing recent management changes, a focus on CSD business, and new product discipline.
  
• Bernstein believes the entire non-life insurance group is oversold and that it is time to buy; the firm upgraded Hartford Financial (NYSE: HIG) and Allstate (NYSE: ALL) to Outperform from Market Perform.
  
• Valero Energy (NYSE: VLO) was raised to Buy from Hold at Deutsche Bank on valuation with the stock trading at a -30% discount to NAV while the asset market for U.S. refineries is strong.

OTHER UPGRADES:

• Goldman added Cisco (NASDAQ: CSCO) to its Conviction Buy List.
  
• RBC Capital upgraded BJ Services (NYSE: BJS), Halliburton (NYSE: HAL) and Patterson-UTI Energy (NASDAQ: PTEN) to Outperform from Sector Perform.
  
• Friedman Billings upgraded the Semiconductor Capital Equipment sector to Overweight from Market Weight.

MOST NOTEWORTHY: Oil and gas services companies, mining companies and Moody's Corporation (NYSE: MCO) were today's noteworthy upgrades:

• Morgan Keegan upgraded Natural Gas Services Group Inc (AMEX: NGS), Basic Energy Services Inc (NYSE: BAS) and Complete Production Services Inc (NYSE: CPX) to Outperform from Market Perform and Patterson-UTI Energy Inc (NASDAQ: PTEN) to Market Perform from Underperform, as the firm has a bullish outlook for drilling activity in the back half of 2007 and into 2008.
• JP Morgan upgraded shares of both Compania de Minas Buenaventu (NYSE: BVN) and Goldcorp Inc (NYSE: GG) to Overweight from Neutral on valuation.
• Moody's was upgraded to Overweight from Equal Weight at Morgan Stanley, citing increased confidence in revenue outlook and growth drivers.

OTHER UPGRADES:

• Inverness Medical Innovations Inc (AMEX: IMA) was upgraded to Buy from Hold at Stifel Nicolaus.
• Credit Suisse upgraded shares of Johnson Controls Inc (NYSE: JCI) to Outperform from Neutral, citing growth outlook in the company's building efficiency business.
• Allianz SE (NYSE: AZ) was upgraded to Buy from Add at WestLB on valuation and the company's strong Q1 results.