The stock is up 10% and vol is up over 11% as well on takeover rumors. The company averages 296 option contracts traded a day. In the first 2 hours over 1,000 have traded. ~650 Jan 12.5 calls have traded (and ~50 Jan 10 calls) accounting for the majority of the volume today. The OI on the Jan 12.5 calls is just 20 - so these are opening orders. The OI in the Jan 10 calls is zero (all opening orders today). It looks like someone is bidding up and buying these calls. I am usually not a big fan of these "takeover rumors" as they seem too often to be utterly nothing. Having said that, the analysis coming from Barron's and it being so slow before the new year, I am compelled to share it briefly. $20 price tag is thrown around. You can read the details on my blog: trades, prices, open interest and news: http://livevol.blogspot.com/2009/12/3-par-inc-par-takeover-rumors.html