You've got to be very careful with these rumors, but the chatter persists that there is interest in Starwood (HOT). Today's rumor features talk of a more than $90 a share offer already on the table and the Kirk Kerkorian is among the interested parties. Recall on June 1st, UBS put out a note saying a sale of the company was likely with a value of $84. Implied volatility has been rising and the heaviest options activity has centered in the July 75 and 80 calls. Yes the 80 strike, about $9 out of the money!
edit: I have decided to jump in with a small batch of calls.