If options activity reflects market sentiment, then big money pros think Brocade is close to a deal.
According to Options pro Scott Nations, call buying was through the roof on Monday with professional investors making upside bets. “Volume was about 8 times normal. And (institutional investors) were really reaching to buy those calls,” he says.
And Nations believes the activity makes sense.
Chatter on the floor suggests IBM and Oracle might be potential bidders. “And if big companies want to own something with a less than $3 billion market cap, a bidding war could ensue,” speculates Nations.
Nations may be all fired up over the potential of a bidding war, but not trader Karen Finerman. She thinks there are better places to put money to work. “It sounds like they’re open to a sale – but I wouldn’t get involved.”
Got something to to say? Send us an e-mail at email@example.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 Web site, send those e-mails to
Trader disclosure: On Jan 9, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Murphy is long M; Murphy is long CMI; Murphy is long CAT; Murphy is long TYC; Murphy is long SWK; Murphy is long KEX; Murphy is long CSX; Murphy is long BRCD; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU)
For Scott Nations
Nations is long BAC
Nations is long C
Nations is long SPY
For Michael Wittner
For Adam Parker
For Amelia Bourdeau
For Richard Pops
For Larry McDonald
CNBC.com with wires.