By Chris McKhann , analyst at OptionMonster

Yahoo! ( YHOO) is seeing bullish stock and call action ahead of its earnings report Tuesday.

Yahoo! closed Thursday up nearly 3% to $14.43, back near its highest levels since early November. The stock has been in a steady uptrend from its Nov. 20 low of $8.94, but the 52-week highs from May 2008 are still 100% away from current levels.

The options action Thursday was in the May 15 calls, in which more than 31,000 changed hands, according to OptionMonster's proprietary tracking systems. The largest block of 25,000 traded for 77 cents and was, in itself, larger than the entire open interest of 19,664 contracts.

Yahoo! is scheduled to reports earnings after the market closes Tuesday. Analysts surveyed by Thomson Reuters expect the Internet company to earn 8 cents a share in the first quarter.

At the time of publication, McKhann had no positions in any stocks mentioned.

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