OSI Systems (OSIS), one of the two companies licensed to sell full-body scanners to the Transportation Security Administration, is recently down 63 cents to $35.25. Overall option implied volatility of 34 is near its 26-week average of 35, according to Track Data, suggesting nondirectional price movement.

J. Crew (JCG) announced that it has entered into a definitive agreement to be acquired by funds affiliated with TPG Capital and Leonard Green & Partners. Millard Drexler will continue as chairman and CEO and maintain a significant equity investment in J. Crew. Under the terms of the agreement, holders of the outstanding common shares of J. Crew will receive $43.50 per share in cash, or a total of approximately $3 billion. December call option implied volatility is at 19, below a level of 55 from November 22 and below its 26-week average of 46, according to Track Data, suggesting decreasing price movement.

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

J. Crew Group (JCG) was nearly 17% higher Tuesday morning thanks to rumors of a potential buyout.

The Wall Street Journal (subscription required) reported that a pair of private equity firms are closing in on a deal to purchase J. Crew for $43.50 per share cash, or $3 billion. One of the potential new owners is TPG Capital, a former owner of the company. TPG would hold a 75% stake in the company, with LA-based Leonard Green & Partners owning the remaining 25%. TPG previously owned an 88% stake in JCG in 1997.

Silver futures are recently trading near a 30-year high. iShares Silver Trust (SLV) overall option implied volatility of 36 is near its 26-week average of 35, according to Track Data, suggesting non-directional price movement.

J. Crew (JCG) is expected to report Q3 EPS in late November. November put option implied volatility is at 44, December is at 49, January is at 52, versus its 26-week average of 45, according to Track Data, suggesting larger price movement into EPS.

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

Analyst Upgrades

• BB&T (BBT) was upgraded to buy from neutral at Janney Montgomery.
• Amylin (AMLN) was upgraded to outperform from market perform at Leerink.
• Wells Fargo upgraded Morton's Restaurant (MRT) to outperform from market perform.
• Check Point (CHKP) was upgraded to overweight from neutral at HSBC.
• Deutsche Bank upgraded Excel Maritime (EXM) to buy from hold.
• JinkoSolar (JKS) was upgraded to buy from hold at Auriga.
• Piper Jaffray upgraded Compellent (CML) to overweight from neutral.
• BofA/Merrill upgraded Crane (CR) to buy from neutral.
• Goldman upgraded Wisconsin Energy (WEC) to conviction buy from buy and American Electric (AEP) to buy from neutral.
• Motorola (MOT) was upgraded due to increasing carrier support by MKM Partners.
• Under Armour (UA) was upgraded to buy from neutral at Sterne Agee.

Analyst Upgrades

• Amazon.com (AMZN) was upgraded to buy from neutral at BofA/Merrill.
• Netflix (NFLX) was upgraded to outperform from perform at Oppenheimer and to neutral from sell at Janney Montgomery.
• Janney Montgomery also upgraded BJ's Wholesale (BJ) to buy from neutral.
• RW Baird upgraded Kforce.com (KFRC), SFN Group (SFN) and Young Innovations (YDNT) to outperform from neutral.
• NetSuite (N) was upgraded to neutral from underweight and Select Comfort (SCSS) was upgraded to overweight from neutral at Piper Jaffray.
• Flushing Financial (FFIC) was upgraded to outperform from market perform at Keefe Bruyette.
• National Instruments (NATI) was upgraded to buy from hold at Stifel Nicolaus.
• RBC Capital upgraded MDS Inc. (MDZ) to outperform from sector perform.

Analyst Upgrades

• Citigroup upgraded Endo Pharmaceuticals (ENDP) to buy from hold and raised its price target for shares to $40 from $28 following the company's acquisition of Qualitest. The firm believes the deal makes financial and strategic sense. Shares were also upgraded to outperform from perform at Oppenheimer with a $40 price target following the company's acquisition of Qualitest. The firm views the deal as potentially transformative for Endo.
• Goldman upgraded Carnival (CCL) to buy from neutral, citing low supply growth and cost-cutting measures. The firm also raised its price target to $44 from $36.
• Needham upgraded Jabil Circuit (JBL) to strong buy from buy with a $23 target.
• Siliconware Precision (SPIL), United Microelectronic (UMC) and Advanced Semiconductor (ASX) were upgraded to buy from underperform at BofA/Merrill.
• Check Point (CHKP) was upgraded to overweight from equal weight at Morgan Stanley.
• Raymond James (RJF) was upgraded to buy from neutral at Ticonderoga.

J. Crew Group (JCG) is currently being sold in the after-hours session. At the time of this writing, shares were off by 7%. At a quote of $31.04, the company has hit a 52-week low.

The retailer reported results for the second quarter (you can check out the press release at the company's site for investors). The numbers were good for the most part. Net income on a reported basis jumped to 53 cents per share from the 29 cents per share booked last year. Reuters says that the adjusted number was 50 cents per share. According to our earnings preview, 46 cents per share was the figure to beat. Gross margin experienced an expansion, which is always helpful.

J. Crew (JCG - option chain) shares are rising today ahead of the company's earnings announcement, which is scheduled for after the market close tomorrow. Analysts expect to see $0.46 per share, versus $0.29 during the same period last year, but the recent trend for the stock has been in a downward direction. Because of the recent movement, I expect that if the company disappoints, the stock will no drop as much as it might rise if the news is good.If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on JCG.

JCG opened this morning at $32.46. So far today the stock has hit a low of $32.32 and a high of $33.63. As of 12:15, JCG is trading at $33.52 up 0.76 (2.2%). The chart for JCG looks bullish and S&P gives JCG a positive 4 STARS (out of 5) buy ranking.

Analyst Upgrades

• RBC Capital upgraded Brookfield Infrastructure (BIP) to outperform from sector perform with a $20 target. The firm thinks the units' valuation is compelling, while the company's proposed acquisition of assets is positive.
• Stifel upgraded First Horizon (FHN) to buy from hold based on valuation and its path towards normalized profitability. The firm has a $15 price target on the stock.
• KeyBanc upgraded Isle of Capri (ISLE) to buy from hold based on improved earnings growth and valuation. The firm has a $13 target on the stock.
• ATA Inc. (ATAI) was upgraded to neutral from underweight at Piper Jaffray.
• Buckeye Partners (BPL) was upgraded to neutral from sell at Goldman.
• Sinopec (SNP) was upgraded to overweight from neutral at HSBC.

Below are some highlights from this past week's earnings coverage on BloggingStocks. Click through to the original posts for more details.

• Ann Taylor Stores Corp. (ANN) shares rallied on heavy volume after it posted better-than-expected Q1 earnings.
• AutoZone Inc. (AZO) Q3 earnings easily beat consensus expectations and same-store sales rose sharply.
• Borders Group Inc. (BGP) posted a wider operating loss, decreasing gross margin, and a same-store sales decline.
• Campbell Soup Co. (CPB) posted strong Q3 results and offered guidance, boosting shares on a down-market day.
• Costco Wholesale Corp. (COST) posted better-than-expected Q3 results, due in part to a surge in membership sales.

J. Crew Group (JCG), a mall entity whose neighbors include Abercrombie & Fitch (ANF), Gap (GPS), and JCPenney (JCP), has been trending higher over the last twelve months. Unfortunately, it is no longer near its 52-week high of $50.96. The shares closed at a price of $43.86 on Thursday. Is the recent pullback a possible buying opportunity?

Interestingly enough, Elizabeth Harrow, in a story previewing yesterday's after-the-bell earnings report, mentioned Wall Street's current discouraging attitude about the retailer. This will obviously make some investors hesitant to buy the stock. Yet, I remember how the company issued a great fourth-quarter summary back in March. At the time, I said taking profits might not be such a bad idea, and that there was nothing in the rulebook that said you couldn't check in on the business at a later date. Well, the later date is here. What should we think now?

Analyst Upgrades

• Oppenheimer upgraded Citigroup (C) to outperform from perform, citing an attractive valuation following the recent pullback in shares. The firm has a $4.58 price target for the stock.
• Macquarie upgraded Transocean (RIG) to to outperform from neutral and has price target of $85 on the stock. The firm believes bad news is already priced into shares.
• JPMorgan upgraded U.S. Bancorp (USB) to overweight from neutral, citing the recent pullback in shares and a lower impact from the financial reform bill. The firm has a $31.50 price target for the stock.
• Boeing (BA) was upgraded to equal weight from underweight at Morgan Stanley.
• Health Net (HNT) was upgraded to buy from hold at Stifel Nicolaus.
• Vale (VALE) was upgraded to overweight from neutral at HSBC.

Retailer J. Crew Group (JCG) is scheduled to take its turn in the earnings spotlight tomorrow, and option volume is rising as traders anticipate the quarterly results.

Today's activity appears to be primarily bullish in nature; in the early hours of the session, one speculator initiated a bull put spread by simultaneously selling JCG's out-of-the-money June 40 put, and simultaneously purchasing an equivalent number of June 37.50 puts.

Analyst Upgrades

• Kaufman Bros. upgraded Vancelnfo (VIT) to buy from hold, citing better earnings visibility. The firm raised its target price for shares to $26 from $22.
• Janney Montgomery upgraded Progressive (PGR) to buy from neutral with an $18.50 price target, citing valuation and market share gains.
• JPMorgan upgraded Marriott (MAR) to overweight from neutral. The firm has a $36 price target on the stock.
• eBay (EBAY) was upgraded to outperform from neutral at Credit Suisse.
• Werner Enterprises (WERN) was upgraded to neutral from underperform at Credit Suisse.
• CNOOC (CEO) was upgraded to neutral from underperform at Macquarie.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Aeropostale Inc. (ARO) reported better-than-expected Q4 earnings and revenue and offered rosy guidance.
• American Eagle Outfitters Inc. (AEO) higher Q4 earnings matched analysts' estimates, but shares rose afterward.
• AnnTaylor Stores Corp. (ANN) swung to a profit in Q4 even though same-store sales dropped; shares fell.
• Cbeyond Inc. (CBEY) received an analyst's upgrade following its Q4 results and guidance for the full year.
• Children's Place Retail Stores Inc. (PLCE) posted strong Q4 earnings even though same-store sales were flat.