Volume Spike Investor

Options action is buzzing early on in a few Technology names that are being mentioned in takeover chatter.  Polycom, Inc. (NASDAQ: PLCM) October $30 calls are trading 4,600 contracts with shares at $27.80 on DealReporter speculation that HPQ and Dell have expressed interest and Polycom is asking a high price.  ValueClick Inc. (NASDAQ: VCLK), one of the last independent online ad plays,  October and November $15 calls are seeing nearly 5,000 trade as rumors that Google is looking to buy the company in the high teens makes their way around, and there has been bullish options action in that name leading up to this rumor.  InterDigital, Inc. (NASDAQ: IDCC)  is also seeing a pick up in options action on vague takeover chatter.  Implied volatility is not spiking at the pace you would want to see in any of these names so we could see premiums crushed and prices fade throughout the session especially as the market weakens.

Joe Kunkle, OptionsHawk.com