Terdayne (TER) is up 56 cents to $13.37 and call options on the chip equipment company are actively traded today ahead of earnings. The top trade is a 3930-contract block of Nov $12 calls at $1.70 on ISE. It’s an opening customer buyer, according to data from the exchange. Beyond that, the action has been in smaller sizes and the next biggest trade is a 160-lot of Nov 12 calls at $1.60. 5,460 traded. Total volume is 6,615 calls and 235 puts. Meanwhile, implied volatility in options on the stock is up 4 percent to 57.5 ahead of earnings, due out the afternoon of October 26.

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

iShares Small Cap Fund (IWM) loses $1.50 to $67.93 and the Weekly [10/28] 63 – 65 – 67 put fly trades at 22 cents, 10000X, and 23 cents, 10000X. Volume in the 65 puts is more than 81K and the flow is opening. The Weekly 63 – 65 – 67 put fly at 22 cents has a downside breakeven at expiration at $66.78 (~1.7%) and a potential $1.78 payoff if shares settle at $65 (~4.3%) at the end of next week. Total volume in IWM today is 101K calls and 463K puts traded in the product and implied volatility in the ETF is up 8.5 percent to 44.

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

Yahoo (YHOO) adds 28 cents to $16.22 and options on the stock are actively traded today after Alibaba’s CEO Jack Ma reaffirmed his attention to buy the company. Speaking at an All Things Digital conference Thursday, Ma said he still has “strong interest in Yahoo,” according to an article this morning on forbes.com. 98,000 calls and 61,000 puts traded on the Internet company. Top trades include a Nov 13 – 15 put spread, apparently sold at 39 cents, 12000X. Separately, an investor bought 7,200 Nov 19 calls for 30 cents per contract. 17,980 now traded. November 15 calls, which are now $1.22 in-the-money, are seeing interest as well. 14,475 traded and data from the ISE indicate that some investors were buying-to-open new positions in the contract this morning. Overall, the options order flow in YHOO seems bullish today and implied volatility in the options on the stock is up 3 percent to 60.5. Shares, which suffered a 40.5 percent swoon in the three months ended Aug 8, have performed well on buyout hopes since that time. YHOO is up 46.1 percent from a 52-week low set at the close of trading on Aug 8.