Schaeffer's Daily Market Blog Features: McClatchy, Apple Computer, Cenveo, and Cadmus Communications.

CINCINNATI -- Among the stocks featured in the December 27 edition of Schaeffer's Market Blog are McClatchy (NYSE:MNI), Apple Computer (NASDAQ:AAPL), Cenveo (NYSE:CVO), and Cadmus Communications (NASDAQ:CDMS). 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.

Don't forget that many of our observations are available as audio presentations that you can hear on your computer or download from Apple's iTunes Music Store to play on a portable device such as an iPod. To see the full menu of podcasts, please visit http://www.schaeffersresearch.com/commentary/podcasts/.

9:43 AM McClatchy to Sell Star Tribune 

McClatchy (NYSE:MNI) announced late Tuesday that it will sell the Star Tribune newspaper of Minneapolis to a private equity firm. The deal, for an initial $530 million, is expected to create an additional $160 million in future cash tax benefits. The proceeds from the sale are to go toward debts incurred from the $6.5 billion purchase of Knight-Ridder earlier this year. The private firm buying Star Tribune is Avista Capital Partners, who said that Chris Harte, a current member of its executive advisory board, will be chairman of Star Tribune, but that the newspaper's senior management team will remain in place, Avista added. The deal is expected to be finalized in the first quarter of 2007.

MNI had hovered within a few points of its 10-day and 20-day moving averages for the past two weeks, but finally broke away from these trendlines and above the 43 mark yesterday.

10:47 AM Apple Options Active

Following reports of potentially falsified documents, the shares of Apple Computer (NASDAQ:AAPL) have plunged sharply lower. The equity is currently down 4.5 percent, climbing back from its intraday lows. Naturally, the equity is seeing some heavy options trading today. The stock's January 2007 90 call has seen more than 13,000 contracts cross the tape on open interest of 99,000 contracts. The January 85 call has traded more than 12,000 contracts on open interest of 55,000 contracts.

The put side hasn't been quite as busy. The most-active January put is the 80 strike, with 9,300 contracts changing hands on open interest of 58,000 contracts. The January 75 put has traded more than 7,800 contracts on open interest of 68,000 contracts.

One other interesting fact related to the stock's options comes from its implieds. Ahead of today's news, the equity's out-of-the-money January 75 put had an implied volatility reading of 48 percent while out-of-the-money January 85 call had an implied volatility reading of 47 percent. Generally, the put will carry a much higher implied reading than the call. This closeness of the two readings indicates to me that demand for calls was relatively high, leaving investors vulnerable to today's sharp decline.

12:34 PM Cenveo and Cadmus to Join

In an attempt to enter some previously untapped niche markets, printer and stationer Cenveo (NYSE:CVO) agreed to buy specialty printing-services company Cadmus Communications (NASDAQ:CDMS) for $430 million including debt. The deal, valued at $24.75 per share in cash, represents a premium of 18 percent over CDMS's closing price of $20.98 on Tuesday. CVO sees this as a fair price, considering CDMS traded for as little as $15 as recently as October. The proposed new company would rank as the number-three graphics-communications company in North America with revenue of more than $2 billion, according to CVO.

This deal comes after CVO tried and failed to purchase peer Banta (BN), which was eventually acquired by R.R. Donnelly & Sons (RRD). While both BN and RRD bring in more revenue than CDMS, the new member of the CVO team should pull its own weight. For the fiscal year ended June 30, CDMS's revenue was more than $450 million.

So far in trading today, CVO has come up just five cents shy of matching its annual high of $21.70 per share, tagged back in September. Currently at $24.50 per share, CDMS has overtaken its last high, set in October of 2005, and is now seeing numbers better than anything since mid-1998.

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.

Take advantage of the timely Schaeffer commentaries by signing up for their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day and get entered to win an IPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1.

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.