By Jon "DRJ" Najarian, co-founder of OptionMonster.

Options activity is high in Coach ( COH)today as rumors circulate about a possible takeover by French luxury goods conglomerate LVMH.

Normal full-session volume in Coach calls is 2,500 contracts, but more than 13,800 calls changed hands in the first 50 minutes of the session alone, according to OptionMonster's tracking systems. The high-end apparel and accessories maker suffered a 14% drop in quarterly profit compared with the same period last year, and we're hearing chatter from the hedgies that LVMH may be considering some kind of deal.

Luxury brands have suffered worldwide, and Coach is no exception: Its shares are down more than 60 percent from its 52-week high of $37.64 reached in May of last year.

Coach has dropped some 13% just in the last two weeks since its earnings report and is at $14.73 in afternoon trading today.