Hansen Natural (NASDAQ: HANS) was trading up $1.29 to $38.50 in pre-open trading.

UBS Warburg believes Coke (NYSE: KO) has been looking into a potential acquisition of HANS.

Stifel says: "We reiterate our Buy rating on HANS after shares declined yesterday following a note from an independent research firm."

HANS February option implied volatility of 74 is above its 26-week average of 60 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com