For Monday's Options Action, Mike Khouw of Cantor Fitzgerald is honing in on a stock that has been on options traders' radars: Northern Trust .

A potential takeover by HBSC fueled a lot of call buying, Khouw said. This drove up the price of options, he noted. Chasing that kind of action is a "dangerous game," but selling premium while preserving a bullish bet is one way to try and capitalize on it.