The deadline to enter the auction for Nortel's optical unit ends today. Publicly only Ciena is a bidder. According to Barron's, investors are expecting Ciena to lose, and that is what is driving the price up lately. If Ciena wins, the stock might sink again.
Here are the straddles, computed with StraddlesCalc, where investors will profit either way, as long as the stock moves the maximum move required:
The 14-14 is near the sweet spot. The 13-15 is wild and risky.
Options are very risky and may incur a 100% loss. Please do your own due diligence. Not advice.