Brocade Communications shares are adding another 25c to $5.25 and option volume is 4x the daily average, with 88,000 calls to 8.860 puts. This is the second consecutive day of active trading (see market color 8/31) and again the trade is being prompted by unconfirmed takeover speculation, with IBM and HPQ being mentioned as possible interested parties. The most active strikes are the April and Oct $6 calls, with more than 17,000 traded in each. But the volume is being done mostly small transactions with two-sided trading driving a lot of today’s volume. Implied volatility is up 9.5 percent to 46. (Updated 15:00)