Schaeffer's Daily Market Blog Features UTStarcom, DoubleClick, Darden Restaurants, Symantec, and the PHLX Gold and Silver Index.

CINCINNATI -- Among the stocks featured in the January 7 edition of Schaeffer's Market Blog are UTStarcom (NASDAQ:UTSI), DoubleClick (NASDAQ:DCLK), Darden Restaurants (NYSE:DRI), Symantec (NASDAQ:SYMC), and the PHLX Gold and Silver Index (PHLX:XAU). 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. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PRMOU1M&PAGE=1.

Schaeffer's Market Blog for Friday, January 7, 2005:

Below are just a few of today's Market Blog entries. Click here to read all of today's Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1

9:48 AM UTStarcom Cuts Revenue Forecast

UTStarcom (NASDAQ:UTSI) lowered its fourth-quarter revenue forecast after the closing bell last night, leading to two downgrades this morning. The company dropped its revenue forecast from the $875-$885 million range to a range of $740-$745 million. Prior to the announcement, the sentiment picture was mixed. The Schaeffer's put/call open interest ratio (SOIR) was at 0.37, which is lower than 88 percent of the readings over the past year. The short-interest ratio is at 3.87, but has trended lower since July. Analysts were fairly cautious on UTSI with seven "buy" ratings, eight "hold" ratings, and four "sell" ratings, and this was before the two downgrades today. UTSI shares are down more than 20 percent in early trading.

10:20 AM DoubleClick up Considerably after Raising Forecast

Internet advertising company DoubleClick (NASDAQ:DCLK) raised its fourth-quarter earnings forecast to six to seven cents per share. Analysts were expecting earnings of three cents per share. The sentiment was leaning toward the bearish side ahead of the announcement. The short-interest ratio is at 3.77 and analysts only had two "buy" ratings on the stock while there were three "hold" ratings and four "sell" ratings. DCLK is trading seven percent higher this morning and has moved back above its 10-week moving average. The stock had dropped below this trendline for the first time since September over the past few trading sessions.

11:04 AM Darden Restaurants Reports Strong Same-Store Sales

Last night after the market close, Darden Restaurants (NYSE:DRI) reported strong December same-store sales at both its Olive Garden and Red Lobster restaurants. December same-store sales were up 14 percent at both of the restaurants. DRI estimates that about five percent of the same-store sales increases were attributable to changes due to holiday shifts. A look at DRI's sentiment background shows that investors currently hold 1,400 calls compared to 2,300 puts in the near term. The resultant Schaeffer's put/call open interest ratio (SOIR) of 1.62 is higher than 88 percent of all readings taken over the past year. Financial analysts do not view the shares in a positive light, as there are currently six "buy" ratings, 10 "hold" ratings and four "sell" ratings on DRI, according to Zacks. At last check, DRI was trading $1.45 higher to $28.82 today.

11:17 AM J.P. Morgan Upgrades Symantec

This morning before the market open, shares of Symantec (NASDAQ:SYMC) were upgraded from "neutral" to "overweight" by J.P. Morgan. According to Briefing.com, the firm stated that they believe SYMC's current valuation adequately compensates for areas of concern. SYMC shares have sold off sharply since the company announced it would be acquiring VERITAS Software (VRTS). In fact, the shares have shed more than 28 percent since their close on December 13. Yesterday, put options on SYMC traded briskly, as put volume was 2.2 times heavier than average. More than 16,900 contracts crossed the tape, with the most active being the February 20.00 strike (SYQ ND). Investors traded more than 7,100 SYN ND contracts yesterday. A closer look into the trading activity reveals that the majority was concentrated in a block trade of 4,900 contracts that hit the tape at 10:53 a.m. However, this block traded in between the bid and the ask, making it difficult to discern if the contracts were purchased or sold. A look at overall option activity on SYMC shows that investors currently hold 232,600 calls compared to 102,400 puts in the near term. At last check, SYMC was trading 39 cents higher to $23.55 today.

2:48 PM Unusual Call Activity on PHLX Gold and Silver Index

The PHLX Gold and Silver Index's (PHLX:XAU) call options appear on today's intraday unusual option activity list. More than 7,000 call contracts have traded for all XAU options with less than three months to expiration. This is more than five times the daily average volume for these options. Most of this volume traded at the out-of-the-money January 2005 95 call (XAU AS), which saw nearly 5,300 contracts trade. The bulk of this activity executed as one 5,000-contract block that transacted at 10:57 a.m. eastern time. The trade went off near the bid price at 1.15, suggesting the trade was a sale. With open interest of just 1,527 contracts yesterday, the trade looks to be the initiation of call-sell positions, possibly as part of a covered-call strategy. XAU was trading at 93.20 at the time of the option trades.

The above are just a few of today's Daily Market Blog entries. Click here to read all of today's Daily Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&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.