Archer Daniels Midland Company (NYSE:ADM) shares moved up $0.68, or 1.92%, to $36.18 this morning after extraordinary call option volume fueled speculation that the company could be the subject of a buyout. The focus was on the $40 calls expiring during the next few weeks as about 35,000 call options changed hands compared to merely 5,800 puts.

Deutsche Bank maintains a list of 25 potential takeover targets based on underlying options activity. Among the targets are the obvious Alltel and Wendy's International along with Sovereign Bancorp, Countrywide Financial, and Gap Inc.

Now, call options purchasing doesn't necessarily mean there isn't any substance to these rumors; rather, they are typically used be traders to spread their bets across many potential opportunities in hopes of a home run. Many investors, however, incorrectly see the move actions based on insider knowledge - which can happen, but is almost always not the case.

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