Schaeffer's "Behind the Headlines" Highlights the Following Stocks: Bed Bath & Beyond, EMC Corp., McDonald's, and United Parcel Service.

CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses on Bed Bath & Beyond (NASDAQ:BBBY), EMC Corp. (NYSE:EMC), McDonald's (NYSE:MCD), and United Parcel Service (NYSE:UPS). "Behind the Headlines" is a report that analyzes newsworthy stocks that are generating a lot of attention on Wall Street. "Behind the Headlines" is published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research.

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Behind the Headlines:

Bed Bath & Beyond: Last night, Bed Bath & Beyond (NASDAQ:BBBY) reported that it doesn't expect to make any material adjustments as a result of its review of stock option grants. Despite this seemingly positive news, the security is down more than one percent this afternoon following a rejection at the 40 level. What's more, it appears that the shares have put in yet another lower high and are poised to begin the next leg of their downtrend. The security has created a series of lower highs and lower lows since its July 2005 peak. In fact, from a longer-term perspective, it appears that the security's uptrend has finally broken down and the stock is vulnerable to an extended decline.

Click the following link to see a Weekly Chart of BBBY Since June 2005: http://www.schaeffersresearch.com/wire?ID=17503

EMC Corp.: Storage company EMC Corp. (NYSE:EMC) is the focus of some extremely heavy option trading this afternoon. The stock's October 12 call has seen more than 17,100 contracts cross the tape on open interest of roughly 22,600 contracts. At 10:21 a.m. Eastern time, a block of 5,000 contracts traded at an ask price of 0.50, while a second block of 5,000 traded at 0.45, between the bid and ask price. If these new contracts prove to be new positions, adding to the option's open interest, the 12 strike could become a magnet for the shares. The 12 strike is already the site of peak call open interest, and an increase in open interest could keep the shares pegged to this strike until the October series expires in two weeks.

Click the following link to see a October Open Interest Configuration for EMC: http://www.schaeffersresearch.com/wire?ID=17503

McDonald's: Fast-food giant McDonald's (NYSE:MCD) reported that the previously announced offer to shareholders to exchange all or some of their shares of MCD's common stock for shares of class B common stock of Chipotle Mexican Grill (CMG: sentiment, chart, options) held by MCD's was oversubscribed. The firm reported that it will accept about 18.6 million MCD's shares in exchange for the roughly 16.5 million shares of CMG class B common stock held by MCD. Technically speaking, the shares are struggling with resistance at the 40 level while sitting on support at their ascending 10-day and 20-day moving averages. The stock has rallied along the support of these short-term trendlines since late June, tacking on more than 19 percent. In fact, the equity is sitting at its highest level since January 2000. Furthermore, it appears that MCD has a little more room to run before it encounters potential options-related resistance. The stock's October 42.50 call has been particularly busy, with open interest of nearly 170,000 contracts. What's more, another 30,500 contracts have crossed the tape today. If the stock can tackle the 40 level, it may be able to run another six percent before tripping at 42.50.

Click the following link to see a Daily Chart of MCD Since June 2006 With 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=17503

United Parcel Service: According to a report from the Associated Press, United Parcel Service (NYSE:UPS) has begun a reorganization of its logistics and freight forwarding unit that will result in job cuts. The security has attempted to fill in a gap lower created on July 25 when the shares dropped more than 10 percent. However, this rally appears to be stalling at the 75 level. Not only is this level the site of former support for the shares, but it is also home to more than 21,200 calls in the October series. This accumulation of bullish bets could serve as a layer of options-related resistance.

Click the following link to see a Daily Chart of UPS Since January 2006: http://www.schaeffersresearch.com/wire?ID=17503

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About Schaeffer's Investment Research (www.SchaeffersResearch.com)

Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com , is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method .