Share of Palm traded higher on Tuesday with options volume absolutely exploding in the name.
Some of the gains came from a belief that Palm's recently announced secondary offering would price on Tuesday, says Avian Securities analyst Matthew Thornton.
Others speculated the move could have been triggered by CNBC’s very own Jim Cramer who suggested that the market had over-reacted to Palm's quarterly report and guidance issued late last week.
But more likely than not the biggest moves were generated by published reports which suggest that Nokia may be in conversations to buy the company.
According to Bloomberg, Nokia, the world’s biggest mobile-phone maker, has fallen behind rivals in software for smart phones and buying Palm would help close the gap.
Analysts at Pacific Crest say “Palm is worth $17 a share on its own, and $25 to $30 to Nokia, based on what they are spending to replicate Palm.”
______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to .
Trader disclosure: On Sept. 22nd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour And Seygem Asset Management Own (MTL); Seymour Owns (AAPL), (BAC), (VALE); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Najarian Owns (C) Calls; Najarian Owns (JPM) And Is Short (JPM) Calls; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (MSFT) And Is Short (MSFT) Calls; Najarian Owns (PALM) Calls; Najarian Owns (RNWK) And (RNWK) Calls; Najarian Owns (SII) Call Spread; Najarian Owns (WFC) Put Spread; Najarian Owns (YHOO) Call Spread; Najarian Owns (FCX) And Is Short (FCX) Call; Najarian Owns (CELG); Najarian Owns (CLX) Calls; Terranova Owns (WFT). (F); Terranova Owns (F) Calls And (F) Puts
For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO
Virtus Diversifier PHOLIO Owns (IGE)
Virtus Diversifier PHOLIO Owns (DBC)
Virtus Diversifier PHOLIO Owns (DBV)
Virtus Investment Partners Owns More Than 1% Of (CAL)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (SKT)
Virtus Investment Partners Owns More Than 1% Of (TNB)
Virtus Investment Partners Owns More Than 1% Of (UA)
Virtus Investment Partners Owns More Than 1% Of (CLB)
For David Goldberg
UBS Securities Has Received Compensation From (DHI), (PHM) In Past 12 Months
(DHI), (PHM) Is Or In Past 12 Months Has Been An Investment Banking Client Of UBS Securities
(DHI), (PHM) Is Or In Past 12 Months Has Been A Non-Investment Banking Client Of UBS Securities (Securities-Related Services)
CNBC.com with wires