Takeover Talk Boosts Options Volume on Nexen

By Jon "DRJ" Najarian, cofounder of OptionMonster .

Nexen(NXY Quote) is seeing heavy options volume ahead of its earnings report Thursday as talk of a possible takeover circulates the trading floors.

The Canadian energy company has averaged 1,300 daily calls in the last 30 days. But 5,900 NXY contracts had traded by Monday afternoon, 3,000 of them in just 10 minutes, according to OptionMonster's tracking systems, which identify unusual options trading in real time.

There is no confirmation whatsoever of the buyout rumors, which specifically mention Berkshire Hathaway's(BRK-A Quote) MidAmerican Energy as the purported suitor. NXY nonetheless ended the day up 3.26% to close at $15.52 and rose another 1.5% in after-hours trading.