Schaeffer's Daily Market Blog Features: Walt Disney, Amazon.com, Telik, Eli Lilly, and Verizon Communications.

CINCINNATI -- Among the stocks featured in the December 26 edition of Schaeffer's Market Blog are Walt Disney (NYSE:DIS), Amazon.com (NASDAQ:AMZN), Telik (NASDAQ:TELK), Eli Lilly (NYSE:LLY), and Verizon Communications (NYSE:VZ). 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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2:01 PM Walt Disney Amends Bylaws 

Judging by the wealth of presents that my daughter received for her first Christmas, Walt Disney (NYSE:DIS) should have a banner year. However, aside from the plethora of Disney products now lining my daughter's toy chest, DIS has found its way into the news today. The company has agreed to amend its bylaws for directors in uncontested elections. In uncontested elections, board nominees must be elected by the majority of votes cast by shareholders, the entertainment company said.

Whether due to the news or a slow start following the holiday break, DIS shares opened broadly lower. However, the security has rebounded back rather nicely, and has reclaimed the support of its 10-day and 20-day moving averages. Looking at DIS's sentiment backdrop, it is kind of hard to tell that the shares have rallied more than 45 percent since the beginning of 2006.

Currently, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.76 ranks above 98 percent of those taken during the past year. Furthermore, it would take more than five days to buy back all of the shorted DIS shares. Meanwhile, 10 of the 17 analysts covering the stock rate it a "hold" or worse. Should the Magic Kingdom continue to shine this brightly heading into 2007, these bears could be in for a tough time.

1:15 PM A Good Season for Amazon.com

In a press release issued early this morning, Amazon.com (NASDAQ:AMZN) said the 2006 holiday season was its "best ever." The online retailer noted that it shipped more than 99 percent of its orders in time to meet deadlines worldwide. Furthermore, the company reported that December 11 was its busiest day, as customer orders exceeded four million items.

Despite this positive news, it appears that the security has been dragged lower by weakness in the rest of the retailing sector. The shares of AMZN have slipped more than one percent, but bounced back from their lows of the session. In fact, today's pullback in the stock has been halted by AMZN's 10-day and 20-day moving averages at the 39.40 level. The equity is also hovering close to its rising 10-week trendline, which has guided the security higher since early September.

1:08 PM Telik Plunges on Study Results

Telik (NASDAQ:TELK) is having a very, very bad day. The security has plunged more than 70 percent on disappointing results from late-stage clinical trials of Telcyta, its lead investigational drug candidate. The firm announced that Telcyta failed to meet primary endpoints for improvement in overall survival in comparison to other treatments in both a phase III Assist-2 trial involving treatment of non-small cell lung cancer and a phase III Assist-1 trial related to platinum-resistant ovarian cancer. In addition, TELK said a "major discordance" was observed in between a clinical review of tumor scans and the independent radiology review in a phase III Assist-3 trial involving Telcyta being used in combination with carboplatin for the treatment of platinum resistant ovarian cancer.

Prior to today's gap, the shares had steadily declined under their 10-day and 20-day moving averages since their late-October peak to rest at previous support in the 15 level. The stock is now trading at $4.80 after hitting a low of $4.69. The equity is now at its lowest level since March 2001.

In options trading, the stock's put are particularly active. The January 2007 5.00 put has seen more than 16,200 contracts cross the tape on open interest of 21,100 contracts. The January 2007 7.50 put has also seen more than 11,300 contracts change hands on open interest of 34,200 contracts.

12:38 PM Midday Rundown

As we head to and through the midday hour, volume is predictably light as many continue to celebrate the Christmas holiday by returning some unwanted gifts. That said, the Dow Jones Industrial Average (DJIA - 12,373.0) has motored more than 30 points higher, the S&P 500 Index (SPX - 1,414,12) is more than three points higher, and the Nasdaq Composite (COMP - 2,406.3) has trekked more than five points higher.

Turning to equities, we have seen activity from the likes of Microsoft (MSFT), Goodyear Tire & Rubber (GT), Alcoa (AA), and Anadarko Petroleum (APC). If you would like news on any in this group, scroll further down the Daily Market Blog. However, one name that is making news that neither my colleagues nor I have covered yet is Verizon Communications (NYSE:VZ). According to The New York Times, the company's Verizon Wireless unit is going to enable placement of banner ads on Internet sites that its customers access through their mobile phones. According to the report, advertisers have been spending more on mobile ads, although experts question their effectiveness. VZ is currently half a percent higher.

Elsewhere, Eli Lilly (NYSE:LLY) and Amylin Pharmaceuticals (AMLN) have moved in different directions following news that the Food and Drug Administration (FDA) approved Byetta as an add-on therapy to improve blood-sugar control. The treatment has been approved for people with Type-2 diabetes who have not achieved adequate control on other medications.

Finally, to the oil pit, where we have seen black gold retreat nearly two dollars thanks mainly to news from Iran. On Saturday, the U.N. Security Council voted unanimously to implement sanctions against Iran for enriching uranium. The resolution will freeze Iranian assets overseas and ban the supply to that country of nuclear materials. While the Iranian president maintained a defiant stance, telling the BBC that the 15 countries who voted for sanctions would "regret their votes," a report published in the National Academy of Sciences concluded that Iran was suffering from a sharp decline in oil revenue. The analysis found that the country could be left unstable and vulnerable in less than five years, with its $50 billion a year in oil exports potentially halved. Natural gas futures have dropped as well, shedding more than six percent thanks to forecasts for warmer-than-anticipated temperatures in the eastern U.S.

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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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.