Darden (DRI) April and October put option implied volatility of 34 is above its 26-week average of 28, according to Track Data, suggesting larger price movement into Q3 results that were reported Thursday after the market close.

Euro Currency Trust (FXE) closed up 70 cents to 141.15. Overall option implied volatility of 11 is near its 26-week month average, according to Track Data, suggesting non-directional price movement.

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

Restaurant chain Darden Restaurants (DRI), first discussed here on June 25, 2009, at a price of $32.78, has formed a double-top near $51. So now would be a good time to consider taking some profits off the table, if you're in near $33.

However, those investors who can tolerate the risk can maintain their full position and go for an bigger gain, but investors should keep in mind that Darden probably won't clear $60 in 2011. The potential upside is still adequate, but not fantastic.

Companies continue to file quarterly reports late in the season, and a few are poised to spread some early holiday cheer for investors this week. Analysts surveyed by Thomson Reuters expect strong earnings results from Nike (NKE), Bed Bath & Beyond (BBBY) and Darden Restaurants (DRI), among others. Here's a quick look (for more details, see the DailyFinance Week in Preview).

Analysts forecast Nike's fiscal-second quarter earnings to come in at 88 cents per share, a 13.6% increase from the same period of last year. The world's leading athletic footwear maker also is expected to post revenue of $4.8 billion for the three months that ended in November. That's 9.3% more than the same period a year earlier. Note that Nike's earnings have not fallen short of consensus estimates in the past five quarters.

Analyst Upgrades

• Wynn Resorts (WYNN) to overweight from neutral at JPMorgan.
• Oracle (ORCL) and Alliance Data Systems (ADS) to outperform from neutral at Macquarie.
• Saint Joe (JOE) to outperform from market perform at Keefe Bruyette.
• Starwood Hotels (HOT) to neutral from underperform at RW Baird.
• Middlesex Water (MSEX) to buy from neutral at Janney Capital.
• Consol Energy (CNX) to buy from hold at BB&T.

Analyst Upgrades

• Baird upgraded Oshkosh (OSK) to outperform from neutral, citing valuation as it believes post-Iraq U.S. military spending concerns are overdone. The firm keeps a $42 price target for shares.
• Goldman transferred coverage on CenturyTel (CTL) with a buy from a neutral and has a $42 price target on the stock. The firm believes CenturyTel could increase buybacks and or increase its dividend given free cash generation and low payout ratio.
• Lazard Capital upgraded Hatteras Financial (HTS) to buy from hold to reflect increased dividend projections. The firm has a $30 price target for shares.
• EOG Resources (EOG) was upgraded to neutral from underperform at Credit Suisse.
• Donaldson (DCI) was upgraded to neutral from underperform at BofA/Merrill.

Experienced investors know that in the frugal consumer era, one should move cautiously regarding restaurant plays, due to sector consolidation.

Restaurant chain Darden Restaurants (DRI), first discussed on June 25, 2009, at a price of $32.78, will likely be among the sector's survivors. Here's why.

Not all companies in these love-struck industries are good buys. Here are 10 stocks to break up with this Valentine's Day.

• 1-800-Flowers (FLWS): A good gift, but a poorly run company that has posted a loss for three of the past four quarters.
• Hershey (HSY): Missing out on the Cadbury merger was not so sweet for Hershey.
• Cardiac Sciences (CSCX): It's hard to have a heart for a company that fails seven out of my eight fundamental screens.

Sotheby's (BID) closed at $22.45. Sotheby's and Christie's hosted postwar and contemporary art sales in London this week. BID is expected to report Q4 EPS in late February. March option implied volatility is at 63; April is at 58; above its 26-week average of 55, according to Track Data, suggesting larger price movement.

Darden Restaurants (DRI) closed at $38.05. Darden is hosting an investor meeting on February 17. March option implied volatility is at 31, July is at 34, below its 26-week average of 36, according to Track Data suggesting decreasing price movement.

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