Yahoo (YHOO) is down $1.23 to $13.97 after the Internet company reported earnings that beat expectations, but revenues fell short of estimates and Yahoo offered only in-line earnings for the third quarter. In the options market, sentiment seems a bit less bearish as one player opened the bullish Jan 12.5 – 16 risk reversal at 13 cents (bought calls, sold puts), 35000X on AMEX. The trade was tied to 2.17 million shares at $13.90. Separately, the Aug 13 – Oct 17 bullish risk reversal traded at 2 cents (credit), 5000X. 71K calls and 76K puts traded in the name so far, or 10X the expected for midday. Implied volatility is down 11 percent to 32.5.