Baxter (BAX) is up a penny to $56.80, even after The Deal highlighted the stock as a possible takeover play. The Deal.com says BAX hasn’t hired anyone, but the co. is considered ripe for a takeout given that there are not many smaller vaccine companies left to be bought. Furthermore, BAX has modest valuation and healthy growth prospects. While shares aren’t reacting, it appears that some players in the options market are. 13K calls and 2625 puts traded, with Oct 60 and Nov 65 calls leading the flow. Data hints at non-customer buyers. Implied volatility (average) is 26 (-.7), compared to a 52-week high and low of 63 and 22.5.

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

Wright Medical (WMGI) options were extremely active Tuesday with a few large trades hitting midday. A block of 3,000 November $17.50 calls was sold-to-close at $1.35. The position was apparently rolled into a longer term bullish position as the trader sold 3,000 May $15 puts at $1.10 and bought 3,000 May $20 calls at $1.70 in a bull risk reversal.

There is a large gap for Wright Medical to fill on the chart from $18.30 to $20.84 from February. The maker of reconstructive joint devices trades just 4.5X cash and at a market cap of $700M it could become a target for Zimmer (ZMH) or Stryker (SYK) looking to add growth, as WMGI grew earnings 225% this year, and forecasts 27% growth next year. The Company recently expanded product lines into ankle and foot surgeries, and also received FDA clearance for a bone graft substitute, a large growing market. Wright Medical looks to be a great play longer term.

Huntington Bancshares (HBAN) gained 31 cents to $4.71 and calls are active after Deutsche Bank upgraded the stock to Buy from Hold. 21K calls traded so far, 3X the expected and about 9X the number of puts. Sentiment is leaning on teh bullish side, with two side-traded seen in the front-month (Oct 4 and 5s), but buyers dominating the action in April 6 and Jan10 5 calls. Implied volatility (average) is up to 73.6, from 69.7 late Tuesday.

From Steve Smith. DirectTV (DTV) shares are up 5c to $25.54 and nearing new 52-week high. Active trading is sending option volume to 3x the average pace. The activity seems to be of bearish bias but likely a form of collaring. Someone bought 10,000 of Nov. $23 puts at 25c ask which was financed by the sale of 5,000 Nov. $27 calls along with 5,000 Nov $28 calls for $1.70 and $1.20, respectively. They also bought 635K shares at $27.53. There has been chatter that Verizon (VZ) might be looking at a deal for DTV and the collective action might be a hedged way to play DTV for a modest move higher.

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

Aetna (AET) is down 25 cents to $28 and 20K Nov 31 calls traded for an average of 92.5 cents per contract. They hit bid-side and were tied to shares at $27.90 — possibly a buy-write strategy. If so, the strategist collected about 90 cents, which brings the cost basis of owning AET to $27 per share. $27 is now the breakeven. The upside is to $31, or 14.8 percent, through the November options expiration (51 days).

ICE, ICE Baby! Shares of the Intercontinental Exchange (ICE) are up $1.36 to $96.40 and 17K calls traded in the first hour, compared to 4700 puts. Oct calls with strike prices ranging from 90 to 110 are seeing interest, with buyers apparently opening new positions as the stock displays relative strength Wednesday. Briefing attributes the move to Deutsche Boerse AG – for – ICE takeover speculation.