*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

Yahoo (YHOO) adds 13 cents to $15.58 and morning trades include a bullish Jan 14 – 17.5 risk – reversal, at 16 cents, 4746X on ISE. ISEE data indicate a customer bought-to-open calls, not puts. It was likely tied to a block of 190K shares at $15.52 that traded within minutes of the risk reversal. Shares have been holding steady today and yesterday after Yahoo held its analysts day Wednesday. The stock is up 2 percent since Tuesday, but down 18 percent since April 18. Implied volatility is down about 7.5 percent to 36.5 percent today, also down from a multi-month high of 46 set a week ago.

Monsanto (MON) is down $3.76 to $48.90 after the St. Louis-based chemical company lowered its third quarter and 2010 earnings guidance. In the options market, one player seems to view today’s decline as an opportunity for a longer-term bullish play. They bought 20,000 January 2012 calls at the 70 line at $3.50 per contract on AMEX. Looks like a new position. Implied volatility in MON is up 5 percent to 42 (compared to a 52-week high and low of 46.5 and 23.5)

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

Seagate Technologies shares are up $1 (6.2%) to $15.80 and notable trade as in the September calls as a block of 20,000 trade at the 40c ask in an opening purchase.

BP gapped higher and is up $2.42 to $44.83 after Bloomberg reported operation “top kill” temporarily stopped the oil flow from the Gulf spill. Meanwhile, Oppenheimer upgraded the stock to Outperform, saying the upside potential for shares is now significantly greater than the downside risk. Some players in the options market seem to agree. 53K calls and 25K puts traded in BP during the first hour. The top trade is a block of 4400 Jan 47 calls at $3.75 and likely a buy-write, as it coincided with a block of 440K shares at $45.13. Beyond that, most of the trades have been in smaller lots, including a Jun 45 – 50 – 55 call fly at $1.20, 396X on ISE. This fly might be closing or, if bought, is targeting a range for BP shares between $46.2 and $53.8 by the June options expiration (22 days).

Global equity markets are rebounding after Chinese officials said China isn’t planning on selling euro-zone assets. Thirty minutes before the start of trading in New York, index futures indicate that the Dow Jones Industrial Average might add more than 150 points at the open.

Stock index futures rallied along with European markets after the China State Administration of Foreign Exchange issued a statement saying talk that it is considering sales of euro-zone bonds is “groundless.” The news comes the day after a report on FT.com titled “China Reviews Eurozone Bond Holdings” sent the euro and US stocks sliding Wednesday afternoon.

However, in midday trading Thursday, Germany’s DAX is up 2.1 percent, France’s CAC 40 added 1.9 percent, and UK’s FTSE gained 1.7 percent. The euro is up .0094 to 1.225 against the dollar.

Crude oil gained $1.79 to $73.30. However, gold is losing some of its flight-to-safety bid, down $4.4 to $1209 an ounce.

Bonds are also giving up recent gains. The benchmark ten-year benchmark Treasury note is down 23/32nd and now yields 3.272 percent.

The drop in bonds and rally in stock futures comes despite a round of lackluster economic news. Data released early Thursday showed first quarter Gross Domestic Product revised down to 3 percent annual rate, from an initial reading of 3.2 percent and less than the 3.3 percent increase economists had forecast.

Meanwhile, the latest weekly jobless claims numbers showed a decline of 14,000 to 460,000 in the period ended May 22. Economists were expecting a decline to 454,000.

Among the stocks to watch, retailer Costco (COST) is up 2.5 percent after reporting a quarterly profit of 68 cents per share, which beat Street estimates by 2 cents. NetApp (NTAP), Verifone Systems (PAY), and Tiffany (TIF) are also up on earnings news. Monsanto (MON) is seeing post-earnings weakness.

Some less actively traded names seeing bullish order flow: Vitacost (VITC), First Industrial Realty Trust (FR), Ameriprise Financial (AMP) Bearish order flow: CFB Financial (CVBF), TJX, Invesco (IVZ) Post-Earnings: American Eagle (AEO) Pre-Earnings: NetApp (NTAP), Costco (COST), Ex-div.: Lockheed Martin (LMT), McDonald’s (MCD), Johnson & Johnson (JNJ)