Schaeffer's Daily Market Blog Features Google, Cyberonics, Cisco Systems, Hasbro, and...

CINCINNATI -- Among the stocks featured in the July 18 edition of Schaeffer's Market Blog are Google (NASDAQ:GOOG), Cyberonics (NASDAQ:CYBX), Cisco Systems (NASDAQ:CSCO), Hasbro (NYSE:HAS), and Mattel (NYSE:MAT). 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=PROB1M&PAGE=1 .

Schaeffer's Market Blog for Monday, July 18, 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 .

11:50 AM Google Back at 300

I notice that Google (NASDAQ:GOOG) quietly retook the 300 level on Thursday, and seemed to find support there. The all-time high of 309.25 set on June 28 once again looks to be within striking distance. Just today, the stock was reiterated at "sector outperform" by one analyst. The 10-day and 20-day moving averages look to be offering strong support. July options have expired, and August is now our front-month. I notice that peak open interest in the options pits lies at the August 310 call (GGD HB), which currently has 16,626 contracts in residence. At last check the stock stood at 301.39, up 0.06 percent on the day.

1:20 PM Cyberonics Sells Off on FDA Approval Announcement

I wrote about Cyberonics (NASDAQ:CYBX) here on June 21, noting that the stock had risen on rumors of an impending Food & Drug Administration approval for the company's vagus nerve stimulation treatment for non-responsive depression. Well, the news came through late Friday that the approval was granted. However, the stock is down about three percent from Friday's last trade. This may be a sell-on-the-news reaction following CYBX's strong run up prior to the announcement. Over the last two months the stock has gained more than 27 percent. Optimism has been increasing as well. Short interest has fallen 38 percent in the last eight months and is at a 14-month low.

2:05 PM Calls Heavy on Cisco

There is a high level of call option activity on Cisco Systems (NASDAQ:CSCO) today with more than 13,000 contracts of call volume. The August 20 call alone has watched nearly 12,000 contracts cross the tape. The buildup of call options at the 20 strike could act as a ceiling for the shares as large levels of call open interest sometimes do. Over-optimism could also point towards near-term weakness for the networking giant. Today's total call option volume is more than seven times that of put option volume.

2:23 PM A Tale of Two Toy Makers

I thought this was interesting, both Hasbro (NYSE:HAS) and Mattel (NYSE:MAT) reported earnings today, but the results from the two toy makers were quite different. Currently, HAS has gained over one-percent to a new 52-week high, although they have come down considerably from their earlier highs. Then looking at MAT, the shares have dropped nearly 2.5 percent on disappointing sales numbers. This is a great example of playing the stronger name, as HAS was trading near its highs before today, whereas MAT hasn't been doing much of anything.

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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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 .