Nexen (NXY, news, chart, volatility) shares are up nearly $5, or 28% today on a FT story that an offer from Total is in the works. (Nexen Responds). Option volume is heavy and dominated by call trading, with 33,000 on the tape so far. Last week we noted flow that may have been a tipoff, as Jan 20 call buyers were seen when shares were in the $15 to $18 range, paying 1.45 to 1.70 for 12,000 while building open interest by more than 8000 contracts that can be sold today for nearly $5. Note: Bullish trading was also seen in NXY on November 25 and 26.