Schaeffer's Daily Market Blog Features: CVS Corp., Caremark Rx, Burger King Holdings, Time Warner, and the iShares 20+ Year Treasury Bond Fund.

CINCINNATI -- Among the stocks featured in the November 1 edition of Schaeffer's Market Blog are CVS Corp. (NYSE:CVS), Caremark Rx (NYSE:CMX), Burger King Holdings (NYSE:BKC), Time Warner (NYSE:TWX), and the iShares 20+ Year Treasury Bond Fund (AMEX:TLT). Schaeffer's Market Blog is just one of the many free market commentaries written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. To have this report delivered to you free via email every day click on the following link and you'll also get an opportunity to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1 .

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9:47 AM CVS and Caremark Rx Rumors

Earlier this morning, CVS Corp. (NYSE:CVS) announced that it is in talks to merge with Caremark Rx (NYSE:CMX). CVS is the second-largest drugstore chain in the U.S. and CMX is a leading pharmacy-benefits manager. CVS stated that it is in talks on a "merger of equals" with CMX, though there has been no assurance that a deal will be reached. An earlier report in the New York Times reported that CVS was in talks to buy CMX for more than $21 billion, and that the talks were at a "critical stage."

While CMX insists that there is no assurance a deal will be reached; investor reaction has been swift in the first 15 minutes of trading. CVX is nearly six percent lower in early trading, while CMX is nearly five percent higher.

10:37 AM All Hail the King

Talk about a whopper of a move! (Sorry about that one.) This morning, Burger King Holdings (NYSE:BKC) announced first-quarter earnings of 30 cents per share, four cents better than the consensus estimate. The fast-food firm's revenue increased to $536 million as worldwide same-store sales increased 2.4 percent. BKC also announced that it remains on target to achieve fiscal 2007 revenue growth of six to seven percent and adjusted an adjusted earnings increase of 20 percent. This news satisfied investors' appetites, as the stock rocketed more than eight percent in the first hour-plus of trading. The increase positioned the stock above the 18 level for the first time since the middle of June.

11:13 AM A Time to Go Short?

Media conglomerate Time Warner (NYSE:TWX) traded as low as $19.49 out of the gate this morning following a less-than-spectacular third-quarter earnings report. However, it seems that damage control has taken over for the shares following news that TWX expects to realize about $1.3 to $1.5 billion from the sale of some AOL operations. The stock is now once again challenging the round-number 20 level in an attempt to move higher on the day.

However, this region has stymied TWX for the better part of the past four years. In fact, the stock has only trekked 13 cents above the 20 level since May 2002, last closing above the region on a monthly basis in March 2002. On the sentiment front, analysts dole out eight "buys" and four "holds," while short interest is negligible at 2.17 days to cover. Options activity is far and away the most bearish for TWX; not the Schaeffer's put/call open interest ratio (SOIR) of 0.64 in the 60th percentile, but the nearly 200,000 calls that call the 20 strike home in the front three months of options. It certainly feels like another rejection is in store for TWX at this round-number level.

1:05 PM Bonds Screaming Higher; TLT Benefiting

Options players seem to be in disbelief of the recent bond rally given the high level of put activity on the iShares Lehman 20+ Year Treasury Bond Fund (AMEX:TLT). The security has jumped from $87 to $90 over the past several trading sessions, which is a rather significant move for the usually slow moving ETF. Put volume on the security has been more than two times call volume both yesterday and today. Such a high level of pessimism toward an upward trending security could mean further upside potential over the near-term.

For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Click here to read all of today's Market Blog: http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13C&PAGE=1.

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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 .