Palm (PALM) is up 21 cents to $8.07 and options volume is running 2X the typical levels on renewed buyout chatter (fly on the wall). Sentiment is bullish, with 21,000 calls and 17,000 puts traded. While Mar 7.5 puts are the most actives, it appears that the volume is dominated by sellers. 78 percent of the 9,570 contracts traded hit bid-side. August 7.5 puts are also active. The call volume is scattered across March and April with strike prices ranging from 7.5 to 12.5 and seems to include a significant amount of premium buying.