Schaeffer's Daily Market Blog Features Cyberonics, Sirius Satellite Radio, Champion Enterprises, Red Hat, and Apple Computer.

CINCINNATI -- Among the stocks featured in the December 14 edition of Schaeffer's Market Blog are Cyberonics (NASDAQ:CYBX), Sirius Satellite Radio (NASDAQ:SIRI), Champion Enterprises (NYSE:CHB), Red Hat (NASDAQ:RHAT), and Apple Computer (NASDAQ:AAPL). Schaeffer's Market Blog is just one of the many free market commentaries written everyday 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=PROB12M&PAGE=1 .

Schaeffer's Market Blog for Wednesday, December 14, 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 .

2:28 PM Cyberonics Rises on Positive News

Cyberonics (NASDAQ:CYBX) is one of the big movers on my screen today. The stock began the day up 2.4 percent at 29.99 but quickly shot higher. At 9:55 a.m., the stock was trading up 75 cents at $30.03. However, huge buying volume arrived during the next 30 minutes, pushing CYBX to 32.30, more than 10 percent higher than yesterday's close. At the time, I could find no news driving the stock, though I knew something must have come out. Within the past two hours, the Dow Jones Newswire reported that CYBX said twice as many insurers have now covered the company's implantable electronic depression treatment than was previously reported. This treatment is an offshoot of CYBX's epilepsy treatment and was approved by the Food & Drug Administration (FDA) in July. As of the time of this writing, CYBX has continued to rise and is trading up more than 15 percent at 33.77.

2:02 PM Sirius Struggles

Sirius Satellite Radio (NASDAQ:SIRI) continues to slide today despite strength in the broader equity markets. Even amid the rapid decline in the shares, there are many traders snapping up call options on the stock in hopes of a rebound. Call option volume today is more than twice that of put option volume on the security. SIRI already has an ultra-low Schaeffer put/call open interest ratio of 0.32, which is below 99 percent of readings during the past year. Given that optimism is running high amid the recent sell off, I'd expect to see even more weakness before the stock can find a near-term bottom.

1:12 PM Champion Enterprises Continues its March Higher

According to Hoover's, Champion Enterprises (NYSE:CHB) is the number-two manufactured homebuilder in the United States (behind Clayton Homes), selling about 23,000 homes annually. The stock has enjoyed a very nice rally over the last eight months. Much of it was helped by the active hurricane season. The company was thought to be one beneficiary of the rebuilding efforts along the Gulf Coast. The stock has gained nearly 75 percent from its April 19 close of 8.40. On April 20 the company reported impressive first-quarter earnings and if was off to the races. The stock had significant moves higher in mid-July (second-quarter earnings) and in late August (Hurricane Katrina and its aftermath). Pullbacks have been largely supported by CHB's 80-day moving average. Sentiment is quite pessimistic. The Schaeffer's put/call open interest ratio (SOIR) has risen sharply over the past two weeks to 1.03. This is higher than 97 percent of daily SOIR readings over the past year. Short interest is also significant. It's up 36 percent over the past four months and amounts to nearly eight percent of the stock's float.

11:25 AM Red Hat Upgraded at FTN Midwest Securities

Shares of Red Hat (NASDAQ:RHAT) enjoyed an analyst upgrade this morning. FTN Midwest Securities raised its rating on the security from "neutral" to "buy," as they see emerging growth trends and compelling fundamentals. Although the financial analyst community is moderately optimistic for RHAT's prospects, short sellers and option speculators have both made hefty bets against the equity. Short interest accounts for 10 percent of RHAT's float. The current Schaeffer's put/call open interest ratio (SOIR) of 0.89 is higher than 92 percent of all readings taken during the past year, indicating a pessimistic extreme. In combination with its robust price action, this skeptical sentiment outlook helps RHAT to garner a strong rating of 8.0 on our proprietary Schaeffer's Equity Scorecard.

10:41 AM Apple Computer Receives Analyst Downgrades

This morning before the market open, Apple Computer (NASDAQ:AAPL) was downgraded by both Banc of America Securities and Bear Stearns. Banc of America downgraded AAPL from "buy" to "neutral" based on its diminished risk/reward profile in the wake of the stock's recent run up. Bear Stearns cut the security from "outperform" to "peer perform" based on valuation. A check on the overall outlook from financial analysts shows that before this morning's downgrades, there were nine "buy" ratings, 11 "hold" ratings, and one "sell" rating on AAPL.

Technically speaking, AAPL has been a stellar performer. The stock has been riding the tandem support of its 10-day and 20-day moving averages higher and has tacked on nearly 130 percent during the past year. Today's downgrades have taken the shares just below their 10-day moving average. At last check, AAPL was trading nearly four percent lower to $72.22.

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 .

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. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB12M&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 .