Analyst Upgrades

• Chesapeake (CHK) to buy from hold at Canaccord.
• Biogen (BIIB) and Regeneron (REGN) to outperform from sector perform at RBC Capital.
• Caribou Coffee (CBOU) to outperform from neutral and Encore Energy (ENP) to neutral from underperform at RW Baird.
• Fluor (FLR) to market perform from underperform at BMO Capital.
• Hornbeck Offshore (HOS) to conviction buy from neutral at Goldman.
• Saks (SKS) and Zale (ZLC) to neutral from underperform at BofA/Merrill.

Analyst Upgrades

• Applied Materials (AMAT) to overweight from neutral at Piper Jaffray.
• Air Products (APD) to buy from hold at Citigroup.
• Youku.com (YOKU) and Pinnacle West (PNW) to buy from neutral at Goldman.
• Stryker (SYK) and Zimmer (ZMH) to buy from neutral at UBS.
• Zions Bancorp (ZION) to outperform from neutral at Macquarie.
• Alnylam (ALNY) to buy from hold at Needham.
• AK Steel (AKS) to buy from hold at KeyBanc.

Baidu (NASDAQ: BIDU), a Chinese-language internet search provider, is recently down $33.10 to $310.09. BIDU call option volume of 95,184 contracts compares to put volume of 67,862 contracts. BIDU October 330 straddle is priced at $35.50. BIDU November option implied volatility of 90 is above its 26-week average of 55, according to Track Data, suggesting larger price fluctuations.

Regeneron (NASDAQ: REGN), is primarily focused on the development of drugs for oncology. REGN is recently up $0.59 to $19.09. REGN October 20 calls have traded 42 times on transaction volume of 881 contracts, above its open interest of 710 contracts. REGN November call option implied volatility is at 85, puts are at 73 above its 26-week average of 56, according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options: VIX.X up 2.54 to 19.21.

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