Options Action: Spotting Takeover Targets

With U.S. targeted mergers & acquisitions up 11 percent this year and takeover speculation moving the markets, Cantor Fitzgerald's Michael Khouw on Wednesday explained a stealth way that options action may reveal which names could be takeover targets.

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Trader disclosure: On Dec. 22, 2010, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman owns (AAPL), (GOOG), (JPM) and (MSFT). Stephen Weiss owns (DVN), (FAS), (QCOM), (TBT), (VZ), (AKS), (SWC), (COP), (HK) and (NFLX) puts. Tim Seymour owns (AAPL), (BAC) and (F).

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BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (BBT)
Accounts Managed By Kanundrum Capital Own (DE)
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Accounts Managed By Kanundrum Capital Own USD
Accounts Managed By Kanundrum Capital Own Australian Dollar
Accounts Managed By Kanundrum Capital Own (XLE)
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KAREN FINERMAN
Finerman's firm is short (IJR)
Finerman's firm is short (MDY)
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Finerman's firm is short (IWM)
Finerman's firm is long S&P puts
Finerman's firm is long Russell 2000 puts
Finerman's firm owns (GLW)
Finerman's firm owns (JPM) and (JPM) leaps
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ANTHONY SCARAMUCCI
Scaramucci and Skybridge Capital own (BR)
Scaramucci and Skybridge Capital are long USD
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Scaramucci and Skybridge Capital own (C)
Scaramucci and Skybridge Capital (EBAY)
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BARRY RITHOLTZ
FusionIQ Owns (EWJ)

ED GROSHANS
Disclosures pending

BRIAN NAGEL
Nagel has no disclosures

DENNIS GARTMAN
Funds Managed By Dennis Gartman are long crude

MIKE KHOUW
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