UAL Corp. (UAUA) is up 91 cents to $9.17 after Morgan Stanley upgraded the airline sector to Attractive, citing better earnings and liquidity projections for 2010. They upgraded UAL and AMR to Overweight from Equal Weight. In UAUA, options activity is running at 12X the expected for midday, including 12K puts and 15K calls. One player bot 2500 Dec 8 puts at 25 cents each, possibly hedging a position in shares. A block of 3500 Jan11 2.5 puts at 30 cents on PHLX is possibly a hedge or a premium seller (hit mid-market). Dec and Jan10 $9 and $10 calls are seeing action as well. Implied volatility (average) is up to 90, from about 88.5 late Tuesday.