Saks (SKS) implied volatility surged after the Daily Mail, a British newspaper, said a consortium of investors might be looking to buy the retailer for $11 per share. Shares hit a morning high of $8.85 and were recently up $1.35 to $7.95. About 14,000 calls and 43,000 puts traded in the name so far, or 15X the average daily. Implied volatility is rallied 32 percent to 80.

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

Cisco Systems (CSCO) touches a new 52-week low and was recently down 21 cents to $20.11. One strategist seems to be looking for a rebound and initiated an Oct 16 – 24 bullish risk reversal, collecting 2 cents, 5500X on CBOE. They bought calls, sold puts and might be offsetting an existing position. Both contracts have now traded more than 10000X. Implied volatility in CSCO is flat today at 33, compared to a 52-week high and low of about 45 and 20.

Brocade Communications shares are up 5c to $50.3 and option volume is 3x the daily average with some 38,000 calls to 2,800 puts. The most active strike is Jan $7.50 call with 11,000 contracts which had a block of 7,800 traded at the 11c ask and looks like new buying. The April $4, 5 and $6 calls all have volume exceeding their prior open interest with 725 occurring the ask suggesting fresh buying. BRCD, a CA based company that operates in the data storage/cloud computing space that has become the hot focus of takeover speculation was mentioned on Fast Money last night as an attractive target.

BofA (BAC) is up 16 cents to $12.48 and a noteworthy spread in recent trade is a Jan 2012 17.5 – 25 call spread, apparently bought at 48.5 cents, 10000X on PHLX. It was tied to shares at $12.40 and might be a closing trade or a roll down in strikes. If opening, its an ambitious play as the breakeven (at the Jan 2012 expiration) is around $18, or more than 44 percent above current levels.

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

Dollar Thrifty (DTG) lost 10 cents to $48.05 yesterday and the Sep – Oct 55 call spread traded at 42.5 cents, 5000X in midday trading Monday. Open interest data indicates a roll from one month to the next. Shareholders are currently trying to derail Hertz’s takeover attempt of Dollar Thirfty, according to the New York Times (8/25). Avis has als expressed interest in DTG. This strategist might be looking for DTG to get a higher offer before all is said and done. Now, by rolling out to October, they’re buying an exta month for things to play out.