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Yahoo! (YHOO - 165-9/16) saw healthy option activity on the April 200 call yesterday, with more than 3,000 contracts trading versus open interest of 17,738 contracts. The stock also logged heavy volume of almost 13.7 million shares compared to its 30-day average volume of just over nine million shares. After the close yesterday, YHOO reported earnings per share of 10 cents per share versus the consensus estimate of nine cents per share, according to First Call
. The stock traded down after hours to about 160. The company typically sets the tone for the Internet group and will be one to keep an eye on today, particularly after the recent volatility. It will be telling if the stock rallies on the news, since many investors had expected very solid earnings to bail out flagging stock prices in recent weeks. If other key earnings reports are not well received, the bears could have the courage to take charge. YHOO has 28 of 32 "buy" recommendations, according to Bloomberg
. The stock has taken its lumps recently with a three-month loss of 18.45 percent.