Sony (SNE) closed at $36.75. SNE April put option implied volatility is at 29, July is at 30, and October is at 31; below its 26-week average of 34, according to Track Data, suggesting decreasing price movement.

Goldman Sachs (GS) closed at $169.84. March put option implied volatility is at 31, April is at 32, versus its six-month average of 33, according to Track Data, suggesting non-directional price movement.

Three stocks with IV rise on March 5; Ciena (CIEN) +11%, Palm (PALM) +9%, Best Buy (BBY) +2%, according to IVolatility.

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

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

• AutoZone Inc. (AZO) reported better-than-expected Q2 earnings, as well as sales and gross margin growth.
• Big Lots Inc. (BIG) beat Q4 earnings expectations, raised its guidance, and lifted its share repurchase program.
• Carmike Cinemas Inc. (CKEC) swung to better-than-expected profit in Q4 and reported strong sales growth.
• Ciena Corp. (CIEN) reported a bigger-than-expected Q1 net loss and some revenue growth, and offered guidance.
• DISH Network Corp. (DISH) posted a year-over-year increase in Q4 revenue but also a decline in per-share earnings.

While Ciena (CIEN) has shown strength lately, the company had a setback Thursday as it disappointed investors on its fiscal first-quarter results. The company, which is a major supplier of telecom equipment, posted a loss of $53.3 million, or $0.58 per share, which compares to a loss of $24.8 million, or $0.27 per share in the same period a year ago. Revenues were up 4.9% to $175.9 million.

Excluding certain one-time items, Ciena's loss came to $0.12 per share. However, the Street consensus was for a loss of $0.09 per share. So, in morning trading, the shares of Ciena were off 9% to $13.24.

As expected, much of the late-2009 selling of broadband/bandwidth play Ciena Corp (CIEN), which I first wrote about on May 19, 2009 at a price of $11.27, was year-end profit taking, with the shares since staging a nice recovery in early 2010, and I still like the shares here.

Look for Ciena to post a healthy 15-18%, driven by the optical/broadband demand recovery, and not including likely, accretive results stemming from its pending $521 million acquisition of Nortel's Metro Ethernet Networking business.

The market rallied on mixed news today, and that was after a mixed overseas show on Monday while U.S. markets were closed and after weakness in overseas markets today. Technology was firm, as were banks and health insurers. Here were today's unofficial closing bell levels:

Dow 10,725.43 +115.78 (1.09%)
S&P 500 1,150.23 +14.20 (1.25%)
Nasdaq 2,320.40 +32.41 (1.42%)

Top Analyst Calls
Top Day Trader Alerts

We are still seeing mixed economic reports, something which may become the norm for early in 2009. Today was also a fairly unsurprising give-back day when you consider just how much stocks closed up yesterday. Home sales data was disappointing, while there were gains in factory orders. Even today's auto data was mixed despite a clear win outlined below. Here were today's unofficial closing bell levels:

DJIA
S&P500
NASDAQ

Top Analyst Upgrades/Downgrades
Top Day Trader Alerts

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

• Advance Auto Parts Inc. (AAP) was downgraded due to concerns about its 2010 earnings outlook.
• Analogic Corp. (ALOG) received an analyst's downgrade after it reported weaker-than-expected earnings.
• AutoZone Inc. (AZO) strong Q1 results beat earnings expectations, but shares rose only a little.
• BWAY Holding Co. (BWY) received an analyst's upgrade following release of its Q4 results.
• Casey's General Stores Inc. (CASY) topped Q2 earnings estimates but lower revenue fell short.
• Ciena Corp. (CIEN) shares plummeted after it fell short of its earnings expectations for Q4.

The markets just wanted to close higher today. A slight gain in the weekly jobless claims had no real impact and a really poor 30-Year Treasury auction that just hints at the demand for rates to rise had only a temporary effect against the stock market.

Here were today's unofficial closing bell levels:

Dow 10,406.66 +69.61 (0.67%)
S&P 500 1,102.35 +6.40 (0.58%)
Nasdaq 2,190.86 +7.13 (0.33%)

Top 10 Analyst Calls
Key Short Interest Changes

Before the market opens tomorrow, telecommunications network specialist Ciena Corp. (CIEN) is due to report its fiscal fourth quarter results, and the stock is trading up nicely ahead of tomorrow's report.

Going into tomorrow's earnings report, analysts are expecting the company to show a lost of 7 cents per share. During the same period last year, the company posted a loss of 10 cents per share.

Ciena Corp.'s (CIEN) stock has underperformed since the May 19, 2009 Buy recommendation at $11.27, but I'm sticking with the shares. Here's why:

Much of the selling in broadband/bandwith play CIEN's shares has occurred ahead of its December 10 Q4 earnings report, and given that CIEN is likely to post year-over-year improving results despite a loss for the quarter, the selling suggests that some short-term institutional investors (IIs) are taking profits 'ahead of the quarter, ahead of the pack.' Keep in mind that Ciena traded at/near $5 earlier this year.

Once a dominant global tech company, Nortel is now in the grueling process of liquidating its assets. For example, over the weekend the company conducted an auction to unload its Metro Ethernet Networks (MEN) division.

The winner? It was Ciena (CIEN), which has agreed to shell out $769 million for the asset. The other bidder was Nokia Siemens.

It was a heated auction, as Ciena's original bid was at $521 million.

Analyst upgrades:

• Jefferies upgraded Starbucks (SBUX) to buy from hold, citing EPS and revenue momentum heading into 2010. The firm raised its target to $25 from $22.
• Soleil upgraded Zions Bancorp (ZION) to buy from hold on valuation as it believes the recent pullback provides an attractive entry point. The firm has a $17.50 price target on shares.
• RBC Capital expects Rigel Pharmaceuticals (RIGL) to sign a partnership for R788 in the next four months to run its global Phase III program. Shares were upgraded to outperform from sector perform and its target was raised to $11 from $9.
• Deere (DE) was upgraded to overweight from equal weight at Morgan Stanley.
• Shire (SHPGY) was raised to outperform from market perform at Bernstein.
• Ann Taylor (ANN) was upgraded to overweight from market weight at Thomas Weisel.
• J.M. Smucker (SJM) was upgraded to overweight from neutral at JPMorgan.

Last week's sleeping bull market was brought back to a woken bull market. Despite warnings from Nouriel Roubini that things were up too much too fast, the services sector actually came in above the expansion line after 11 straight months of contraction. This caused most of the excitement for the day.

Here were today's unofficial closing bell levels:

DJIA
S&P500
NASDAQ

Today's top analyst upgrades and top analyst downgrades
Today's top day trader alerts
Today's top rumors

I'm reiterating my Buy rating for Ciena Corp. (NASDAQ: CIEN), first recommended on May 19, 2009, at a price of $11.27.

Given the likely U.S. recovery, increased demand for bandwidth in the quarters/years ahead will more than offset any near-term sales weakness, which is good news for bandwidth provider Ciena.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Abercrombie & Fitch Co. (NYSE: ANF) earnings prospects and declining sales resulted in a downgrade.
• America's Car-Mart Inc. (NASDAQ: CRMT) stronger-than-expected Q1 results led shares to a four-year high.
• ArcSight Inc. (NASDAQ: ARST) reported strong Q1 numbers on increasing demand for cyber security.
• Brown-Forman Inc. (NYSE: BF.B) Q1 results easily topped expectations despite a decline in revenue.
• Ciena Corp. (NASDAQ: CIEN) posted a Q3 loss but revenue improved sequentially, and shares rose.