Investors pushed up call option prices in the medical instruments and supplies industry and pushed up put option prices in the diversified utilities industry Wednesday.

Any time the volatility skews above 1.00, it is an indication that calls are more expensive than puts. Typically, when calls are more expensive than puts, it means the demand for calls is greater than the demand for puts because investors believe the stock is going to rise in the future and they want to take advantage of that movement by buying calls.

The opposite is also true. Any time a volatility skews below 1.00, it is an indication that puts are more expensive than calls.

Investors call services are pushing put option prices higher in the diversified utilities industry today.

Any time the volatility skews above 1.00, it is an indication that calls are more expensive than puts. Typically, when calls are more expensive than puts, it means the demand for calls is greater than the demand for puts because investors believe the stock is going to rise in the future and they want to take advantage of that movement by buying calls.

Analyst Upgrades

• Deutsche Bank upgraded Varian Semi (VARI) to buy from hold following the company's Q2 results and raised its target for shares to $42 from $27.
• Baird upgraded CommScope (CTV) to outperform from neutral following the Q1 report, citing improved visibility and growth. The firm raised its price target to $39 from $28.
• Needham upgraded Build-A-Bear Workshop (BBW) to strong buy from buy. The firm is more positive on the stock following the company's Q1 results and keeps a $13 price target.
• Spirit AeroSystems (SPR) was upgraded to outperform from neutral at Credit Suisse.
• Wynn Resorts (WYNN) was upgraded to neutral from underperform at Macquarie.
• UBS (UBS) was upgraded to market perform from underperform at FBR Capital.

When you are in the dentist's chair, you are probably not thinking about who makes the crowns, alloys, anesthetics and instruments all around you. When you need them, however, you are glad they are there and just might be interested in knowing that one of the world's biggest manufacturers of such products is headquartered in York, Pennsylvania.

Dentsply International (NASDAQ: XRAY) designs, develops, manufactures and markets a broad range of products for the dental market. The firm is a leading provider of consumables (e.g: anesthetics, impression materials, tooth whiteners, topical fluoride and small equipment), laboratory products (e.g: artificial teeth, alloys, ceramics and crown/bridge materials) and specialty products (e.g: endodontic instruments, implants and orthodontic appliances). Dentsply's client list includes dentists, dental labs and dental schools in more than 120 countries.

"In the current volatile market, you can't go wrong by making your portfolio more defensive," says Glenn Rogers, who notes he has been "on the hunt for stocks that are fairly bulletproof."

One such stock, according to the analyst with Internet Wealth Builder, is Diageo PLC (NYSE: DEO). He says, ""London-based Diageo is the largest international manufacturer and distributor in the beverage alcohol industry, which is virtually recession-proof."

Many of its brands, he notes, will be immediately recognizable: Smirnoff, Guinness, Johnnie Walker, Captain Morgan, Jose Cuervo, Bushmills, J&B Scotch, and our own Crown Royal. In fact, he observes, 17 of the company's brands are among the top 100 premium spirit brands in the world.

Rogers explains, "Its strategy is to drive organic growth by taking leadership positions in every category in which it competes. The company also looks to exploit opportunities for growth in such key emerging markets as China, India, Russia, and Brazil."

When you are in the dentist's chair it's sweepstakes odds you are not thinking about who makes the crowns, alloys, anesthetics and instruments all around you. When you need them, however, you are glad they are there and just might be interested in knowing that one of the world's biggest manufacturers of such products is headquartered in York, Pennsylvania.

Dentsply International (NASDAQ: XRAY) designs, develops, manufactures and markets a broad range of products for the dental market. The firm is a leading manufacturer of dental prosthetics, precious metal dental alloys, dental ceramics, dental sealants, and crown and bridge materials. It also provides such instruments as dental handpieces, endodontic devices, ultrasonic scalers and x-ray film holders; plus such consumables as injectable anesthetics, topical fluorides, impression materials, and dental implants. Dentsply distributes its products in over 120 countries.

The company pleased investors last week, when it reported Q1 EPS of 38 cents (ex-items) and revenues of $472.9 million. Analysts had been looking for 36 cents and $454.7 million. The CEO noted particular strength in the firm's specialty products and its European business units. Banc of America Securities and JMP Securities subsequently reiterated "buy" ratings on the issue.

MOST NOTEWORTHY: Anheuser-Busch (BUD), Checkpoint (CHKP) and Sprint-Nextel (S) were the notables in today's list of upgrades.

• Bank of America upgraded Anheuser-Busch Cos (NYSE: BUD) to Buy from Neutral, with a $55 target; the firm believes there could be modest upside to the Street's 2007 estimates.

• Checkpoint Software Tech (NASDAQ: CHKP) was upgraded by RBC Capital Markets to Outperform from Sector Perform and a $32 target; the firm believes Checkpoint has reached an inflection point and expects year-over-year production license growth.

• Sprint Nextel Corp (NYSE: S) was added to JP Morgan's Focus List with a $25 target; the firm expects Sprint to be a turnaround story in 2007.

OTHER UPGRADES:

• Bear Stearns upgraded shares of AstraZeneca ADS (NYSE: AZN) to Outperform from Peer Perform on valuation.

• BJ's Wholesale Club (NYSE: BJ) was upgraded to Buy from Neutral at FTN Midwest; the firm expects management's restructuring efforts to improve sales and earnings will drive shares.

• Dentsply Int'l (NASDAQ: XRAY) was upgraded to Overweight from Equal Weight at Morgan Stanley based on valuation.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).