• Citigroup upgraded Research in Motion (NASDAQ: RIMM) to Buy from Hold and added the stock to its Top Picks Live List. The firm believes RIMM's outlook is more secure given its unit growth trajectory and stabilizing margins. Citi raised its target on the stock to $100 from $65.
  
• Morgan Stanley upgraded Microsoft (NASDAQ: MSFT) to Overweight from Equal Weight following the company's Q3 results it believes growth is accelerating and expectations are low. The firm raised its target on the stock to $24 from $21.
  
• Deutsche Bank upgraded Huron (NYSE: HURN) to Buy from Hold as it believes bad news is already priced in and FY09 expectations are achievable. The firm keeps a $46 target on the stock.
• Credit Suisse (NYSE: CS) was upgraded to Neutral from Sell at UBS.
  
• Quicksilver (NYSE: KWK) was raised to Buy from Neutral at Banc of America/Merrill.
  
• EIG Resources (NYSE: EOG) was lifted at Goldman to Conviction Buy from Neutral.

MOST NOTEWORTHY: Psychiatric Solutions, hhgregg and Ulta Salon were today's noteworthy initiations:

• Stanford started Psychiatric Solutions (NASDAQ: PSYS) with a Buy rating and $46 target and believes the recent pullback provides an attractive entry point given the company's stable growth and fundamentally strong business.
  
• Oppenheimer initiated hhgregg (NYSE: HGG) with a Perform rating. The firm believes the company's TV business could become much more challenging while housing market weakness could continue to hinder appliance sales.
• Oppenheimer also assumed Ulta Salon (NASDAQ: ULTA) with an Outperform rating and $13 target. The firm believes the company's fundamentals are solid and sees potential upside to valuation.

OTHER INITIATIONS:

• Piper initiated Ormat Tech (NYSE: ORA) with a Neutral rating and $49 target and Raser Technologies (NYSE: RZ) with a Sell rating and $7 target.
  
• The9 (NASDAQ: NCTY) was assumed at Roth Capital with a Hold rating and $27 target.
  
• Masimo (NASDAQ: MASI) was initiated with an Outperform rating and $44 target at BMO Capital.

Ipsco Inc. (NYSE: IPS ) -- volatility up; indicates more Risk; release of discussions of acquisition. IPS, a low cost producer of energy tubular sans steel plate, is recently up $15 to $156.19. IPS says "it is currently in discussions that could lead to a potential acquisition of the company." IPS has a market cap of $6.9 billion with long-term debt of $879 million. IPS reported 2006 total revenue of $3.7 billion. IPS call option volume of 4,751 contracts compares to put volume of 1,506 contracts. IPS April option implied volatility is at 47, May is at 43 above its 26-week average of 38 according to Track Data, suggesting larger price risks.

Raser Technologies (AMEX: RZ) -- option implied volatility Elevated on agreements win; RZ rallies 19%. RZ has pending patents and proprietary intellectual property covering breakthrough technologies. RZ is up $2.00 to $9.20. RZ entered into a series of agreements with UTC Power to provide up to 135 PureCylce geothermal power systems for three Raser power plants. RZ call option volume of 4,366 contracts compares to put volume of 2,255 contracts. RZ May option implied volatility of 128 is above its 26-week average of 108 according to Track Data, suggesting larger price risks.

Option volume leaders today are: Dendreon Corp. (NASDAQ: DNDN), Citigroup Inc. (NYSE: C), Washington Mutual (NYSE: WM) and Research in Motion (NASDAQ: RIMM).

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