KLA-Tencor (KLAC: sentiment, chart, options) announced earnings dropped 28% in the fiscal third quarter to $111 million, or 61 cents per share. Excluding items, earnings would have been $121 million, or 67 cents per share. Revenue fell 16% to $602 million. The Street had predicted a profit of 64 cents per share on revenue of $586.2 million.

The shares of KLAC have been in an uptrend since hitting a low of $35.02 in March. The stock has climbed along support at its 10-day and 20-day moving averages and rallied 3.8% on Thursday ahead of its earnings report. The shares are poised to continue their rally today following the stronger-than-expected earnings report. The stock is currently hovering at resistance at the 45 level, an area that has capped the equity on a daily basis since the start of the year.

Heading into the earnings report, options players developed a preference for puts. The stock's Schaeffer's put/call open interest ratio has risen from 0.63 on Wednesday to its current reading of 0.71. In fact, the stock's May 40, 42.50, and June 42.50 puts each added roughly 1,000 new positions on Thursday, while call activity stayed extremely quiet. This preference for puts would seem to indicate that investors had low expectations for the shares.