Schaeffer's Daily Market Blog Features: Candela, Altria, Kraft, Yahoo!, and Apple Computer.

CINCINNATI -- Among the stocks featured in the October 25 edition of Schaeffer's Market Blog are Candela (NASDAQ:CLZR), Altria Group (NYSE:MO), Kraft (NYSE:KFT), Yahoo! (NASDAQ:YHOO), and Apple Computer (NASDAQ:AAPL). Schaeffer's Market Blog is just one of the many free market commentaries written

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10:54 AM Candle Power

The leading light on the Nasdaq at last check was Candela (NASDAQ:CLZR), which reported first-quarter earnings yesterday after the bell. The Massachusetts maker of medical lasers announced today that revenue grew by 19 percent from the same quarter a year earlier. Excluding items, earnings came in at 13 cents per share, the same as we saw in the year-earlier period. The consensus estimate from Zacks stood at four cents per share, so it is no surprise that the stock has gained more than 27 percent so far today, to trade at $14.01. The sentiment picture is interesting. Short interest increased 44 percent in the most recent month, and more than six percent of the stock's float is sold short. Some of those short sellers are likely to be hurting today, adding potential buying pressure to the mix. Meanwhile, the speculative options crowd has pushed the stock's Schaeffer's put/call open interest ratio (SOIR) to the 82nd percentile; in other words, sentiment in the options pits lies toward the pessimistic end of the spectrum, suggesting that there is money waiting on the sidelines. One to watch.

11:02 AM Kraft Macaroni & Arbitrage

It seems that we might have some arbitrage activity taking place today on Altria Group (NYSE:MO) and Kraft Foods (NYSE:KFT). This morning, MO announced that it intends to finalize its decision to distribute all of the KFT shares it owns to MO shareholders at its January 31 meeting. The idea behind the arbitrage play is to short KFT shares and buy MO shares. By shorting the KFT shares, you pocket the money gained from the short sell. Meanwhile, by buying the MO shares, you not only get a solidly performing blue-chip stock, but you also get the KFT shares that will be distributed to MO share holders. As such, you won't have to go out on the market and buy back the KFT shares to close your short position. The stocks' activity today is supportive of this theory, as MO is currently up more than three percent, while KFT has declined more than two percent.

1:05 PM Yahoo! No; Amazon.com Yes

Options open interest on Yahoo! (NASDAQ:YHOO) is currently running about two-to-one in favor of call options over put options. The current SOIR of 0.51 is lower than 78 percent of readings over the past year. Clearly, there are some options players out there who believe the stock can bounce back. With the shares up more than two percent thus far today, call volume is more than four times put volume. Over-optimism may sink this puppy. You'd be better off holding shares of YHOO's Internet cousin Amazon.com (AMZN).

1:38 Apple Close to New High

Rumors of an iPhone from Apple Computer (NASDAQ:AAPL) are circulating today, as investors shout "iBuy." The stock hit the highest levels we have seen since January. In fact, it has only ever closed one week above its current level. The bulls still have a bit of work to do; at last check, the stock was trading at $81.50, whereas its all-time high was $86.40. Nevertheless, this is a situation you might like to keep an "i" on.

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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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 .