Granted, we can't read the investors' minds, and they may have been buying the options to offset the risk of a short position. But experts say the move suggests investors see an upside in Tellabs's shares.

    In addition, the options move noted above coincided with the first whispers that Nortel was in the hunt for Tellabs. "Perhaps renewed speculation of a potential deal prompted investors to roll out the position,” says Chris Jacobson, a Susquehanna analyst.

    Tellabs and Nortel, respectively, declined to comment on rumor and speculation. They won't comment on this article, either.