I have been monitoring the options and trades on Marvell for the last few days. Someone came in yesterday and bought 10700 calls in one swoop. Then I started looking at the trades very closely. I was seeing 250k to 500k blocks trade all at once. The afterhours trading started to look very suspect as well. Then the Reuters article comes out to confirm what I was suspecting: Investors eye Marvell Tech options on LBO talk Thu Oct 26, 2006 4:10 PM ET CHICAGO, Oct 26 (Reuters) - Market talk that Marvell Technology Group Ltd. <MRVL.O> could be a leveraged buyout candidate fueled bullish activity in its options on Thursday as as some players hoped to catch further stock gains in the chip maker, traders said. Calls to the company were not immediately returned. Nasdaq shares of Marvell rose $2.37 percent, or 39 cents, to $16.88 late on Thursday. The gain in Marvell shares was accompanied by strong interest in Marvell options as the speculation made the rounds in the U.S. options market. Marvell calls are active on unconfirmed leveraged buy out (LBO) chatter, said Paul Foster, strategist at financial-information Web site theflyonthewall.com in Chicago. Near the close, a combined total of 40,372 options had traded in Marvell Technology across the U.S. option exchanges. The trading was dominated by 31,337 calls, which give the right to buy the stock at a predetermined price within a specified time period -- outstripping its average daily volume of 21,443 contracts, according to market research firm Track Data. Investors often use calls as a way to speculate on further stock appreciation. "Heavy trading is being seen in the November, December, and January call options, as some traders appear to view an LBO possibility seriously, and are taking out bullish positions on Marvell," said Frederic Ruffy, analyst at Optionetics, an options education firm in California. I think a buyout is the future for Marvell. The news has leaked out somehow and there are shifty characters overloading the boat with calls and huge blocks being taken up by funds. Today the volume was 1.5 times normal. This appears like Harrahs all over again.