Yahoo (YHOO) adds 25 cents to $16.25 and is seeing relative strength today on reports Alibaba is considering taking its Hong Kong unit private, which would give Yahoo a stake in Alibaba. The headline comes the day after news reports indicated that Alibaba might buy back its 40 percent stake in YHOO. The stock is in the midst of a two-day 2.8 percent advance and today’s share volume of 8.8 million is a lot higher than the expected volume of 5.8 million. Options on Yahoo are actively traded as well. Recent trades include a July 16 – 18 (1X2) call ratio spread for 19 cents, 3000X. Separately, a Mar 14 – 16 put spread was psossibly sold on the stock at 40 cents, 6200X. A third big trade in Yahoo today looks like a July 16 straddle, which traded at $2.88, 4750X.