Yet again, there is some buzz that a deal is in the works between Sprint Nextel (S) and Deutsche Telekom's T-Mobile USA. In fact, it may be more than just a rumor. In early trading Tuesday, the shares of Sprint were up nearly 6%.

In light of the need for spectrum investments, Deutsche Telekom has already said it's looking at strategic partnerships. So could this really be code-speak for a merger deal? Perhaps so.

Option volume has ramped up today on KeyCorp (KEY), with activity rising well beyond the usual level on both the call and put side of the tape. Taking a closer look at some of the major block trades on this regional banking issue, it appears that a single spread strategist is responsible for a healthy portion of this option volume.

Specifically, the trader purchased a block of 10,000 June 10 calls for $0.50 each, and simultaneously sold 10,000 June 8 puts for $0.25 each. The result was a net debit of $0.25 per pair of contracts -- which means the speculator can begin collecting profits on those purchased calls if KEY rallies beyond $10.25 by June expiration.

For the past decade, it's been brutal for shareholders of Alcatel-Lucent (ALU). With the contraction in the telecom market, the sales for equipment has plunged.

Yet since September, investors have been piling into Alcatel-Lucent as the shares have gone from $2.80 to $5.34. The reason? Well, the smartphone megatrend is a key factor. As carriers bolster their networks, they need to go to providers like Alcatel-Lucent.

Rumors have been circulating for almost a month about Borders' (BGP) possible bankruptcy filing. People familiar with the situation told The Wall Street Journal that the filing could come as early as the middle of this month.

Borders has been trying to hold off the filing by delaying payments to vendors. But this is only temporary. Now the matter has reached a critical stage. The company has obtained about $500 million to $550 million in debtor in possession financing that would keep the company operating after a court filing.

BB&T (BBT - option chain) shares are rising today after the Wall Street Journal reported that Sterling Bancshares (SBIB) has put itself up for sale. The Journal listed BBT as one of the banks interested in acquiring Sterling. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on BBT.

BBT opened this morning at $26.83. So far today the stock has hit a low of $26.80 and a high of $27.90. As of 12:15, BBT is trading at $27.87 up $1.00 (3.7%). The chart for BBT looks bullish and S&P gives BBT a positive 4 STARS (out of 5) buy ranking.

IMAX (IMAX) finished 2010 with a wild trading day. With a little over two-and-a-half hours to go before the market bell, I had noticed that the stock was up an incredible 15.6% to $31.05. On heavy volume. Yes, heavy volume, on the last day of the year.

What was the reason? There was some speculation about a buyout. StreetInisder.com had reported that Sony (SNE) was possibly interested in buying the business. Disney (DIS) was also mentioned as a potential acquirer.

Shares of Anadarko Petroleum (APC) gapped higher right out of the gate Thursday morning, thanks to a report that BHP Billiton (BHP) may be eyeing the firm as a potential takeover target. According to the U.K.'s Daily Mail, BHP could be prepping an offer worth $90 per share to acquire Anadarko. However, neither company has issued a formal response to the speculation.

After jumping to a new annual high of $76.50 bright and early Thursday morning, APC is on pace to notch a weekly finish atop the $70 level for the first time since April 23. In fact, if the shares can maintain their positive momentum through Friday's close, the shares could stage their first weekly victory north of $75 since June 2008.

Bank of America (BAC) has grabbed some headlines lately, for better or worse. Earlier this week, WikiLeaks founder Julian Assange claimed he would release documents next year pointing to an "ecosystem of corruption" at a major U.S. bank, and many journalists connected a trail of dots leading back to Bank of America. As a result, the stock slipped 3% on Tuesday.

However, Bank of America bounced back with the rest of the market on Wednesday, after one executive at the Charlotte-based bank downplayed the growing speculation. During the course of the session, call volume on BAC rose to two times the usual level, with about 593,000 contracts crossing the tape.

Forgive me if I stray slightly, but I could not help thinking about how ironic it would be if someone leaked information as to the whereabouts of Wikileaks founder and "fearless leader" Julian Assange -- who is in hiding!

It would be even more ironic if a CIA operative who had his cover blown by Wikileaks decides what goes around comes around. Let's face it, in its own way Wikileaks has become a rogue nation, so why wouldn't the CIA get involved?

In the mean time, this has probably helped world markets as it has overtaken everything else as the big story of the past 48 hours. In a bizarre way, Assange may have achieved one of his goals by bringing the world closer together, sort of.

J. Crew Group (JCG) was nearly 17% higher Tuesday morning thanks to rumors of a potential buyout.

The Wall Street Journal (subscription required) reported that a pair of private equity firms are closing in on a deal to purchase J. Crew for $43.50 per share cash, or $3 billion. One of the potential new owners is TPG Capital, a former owner of the company. TPG would hold a 75% stake in the company, with LA-based Leonard Green & Partners owning the remaining 25%. TPG previously owned an 88% stake in JCG in 1997.

Del Monte (DLM - option chain) shares are rising today on reports that the company is in advanced discussions with KKR (KKR) regarding a possible takeover of DLM. KKR is offering $18.50 per share for DLM, according to a Reuters report. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on DLM.

DLM opened this morning at $17.46. So far today the stock has hit a low of $17.07 and a high of $17.72. As of 12:05, DLM is trading at $17.20 up $1.49 (9.5%). The chart for DLM looks bullish.

If you had to pick a commodity market dominated by rumors, it would have to be sugar. On Nov. 3, our headline read: "Sugar Surges to a 30-Year High on Tight Supplies." Then, just over a week later, our headline read: "Sugar Plunges from a 30- Year High." And now today's headline describes another surge. What is going on?

First, the facts:

• Sugar stocks are at their lowest level in two decades, as reported in the Wall Street Journal.
• The International Sugar Organization cut its prediction to a 60% smaller surplus of 1.29 million tons. Some analysts have forecast an even tighter surplus.

Thursday, the company I fondly call the House of Mouse -- Walt Disney (DIS) -- released fourth-quarter earnings that eventually pushed the stock lower.

I am not as interested in the earnings results as I am in the news that my colleague Steven Mallas touched on in the first paragraph, the earnings were released earlier than expected. The company was supposed to report the earnings after the closing bell sounded, but the results were leaked nearly 30 minutes ahead of the final bell.

Boeing (BA - option chain) stock is trading lower today on conflicting reports about the company's timeline for the debut of its highly-anticipated, but much-delayed 787 Dreamliner. Aviation Week published a report late Friday that the company has told several customers that delivery of its 787 Dreamliner will be delayed by up to 10 months, but Boeing denies this report, saying it intends to meet the current delivery date of Q1 2011. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on BA.