Schaeffer's Daily Market Blog Features Boston Scientific, Medtronic, Elan, Goldman Sachs, and Applied Materials

Business Wire, May 26, 2006

CINCINNATI -- Among the stocks featured in the May 26 edition of Schaeffer's Market Blog are Boston Scientific (NYSE:BSX), Medtronic (NYSE:MDT), Elan (NYSE:ELN), Goldman Sachs (NYSE:GS), and Applied Materials (NASDAQ:AMAT). 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=PROB12M&PAGE=1 .

Schaeffer's Market Blog for Friday, May 26, 2006:

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 .

Posted 3:22 PM This Just In

As the week winds to an end and all our minds turn toward the three-day weekend, I was watching my news alerts in hopes that the clock would seemingly skip ahead to 5:00. While that didn't happen, I did see that a federal court of appeals has decided to uphold decisions in two patent cases. The court ruled that Boston Scientific's (NYSE: BSX) Taxus Express, Express, and Nir stents do not infringe on four Medtronic (NYSE:MDT) patents. This decision affirms two 2005 rulings that MDT was appealing.

BSX seems to be in a steady uptrend today, after finding support at the 20 level. What may be more important is that the shares have eclipsed their 10-day moving average thanks to a two-plus percent gain on the day.

Posted 2:17 PM Options Trading on Elan

Elan Corp. (NYSE:ELN) is seeing some excitement today, as it has rallied more than two percent to peg a fresh annual high. Around 1:00 p.m., the biotechnology firm announced the appointment of new board director William R. Rohn. Mr. Rohn is an experienced veteran in the industry who currently serves as Vice Chairman of Raven Biotechnologies Inc. He previously served as Chief Operating Officer of Biogen Idec (BIIB) until January 2005.

What's more, ELN has seen options players scoop up positions on its January 2007 22.50 (ELN AX) and 25.00 (ELN AE) calls. Nearly 13,000 contracts have changed hands on both of these out-of-the-money positions. Two large blocks traded on both of these options shortly before 2:00 p.m. Given the similarly in timing and block sizes, these were likely related as a spread.

Posted 1:50 PM Is Goldman Golden?

Call options volume on Goldman Sachs (NYSE:GS) is running at nearly three times its daily average with the stock up about 3.5 percent. Options players haven't been shy about betting on this stock recently, with the current Schaeffer put/call open interest ratio on the security of 0.64 below 92 percent of all readings taken during the past year. If the technical picture for GS continues to improve, then the shares might be OK. But for now, I'd view the high level of optimism as a sign of potential danger.

Posted 1:01 PM Calls Active on Applied Materials

Call option volume on Applied Materials (NASDAQ:AMAT) is 25 times that of respective put volume. Such a high level of optimism on the part of traders could be a warning sign. Look for the stock to find potential resistance near its 10-day moving average around the $17 level.

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=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 .