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Shares of Nuance Communications (NUAN) bounced higher on Monday after rumors of a potential Baidu (BIDU) buyout began circulating. Nuance January 13 and 14 calls were active in early trading on total call volume of 10K contracts after the blog predicted a possible BIDU buyout. Active call volume suggests traders taking positions for upside price movement. January call option implied volatility is at 42, February is at 41, April is at 34; compared to its 26-week average of 37. Immediate upside for the stock is limited to the $14.28 overhead resistance level but, if the BIDU rumors are substantiated, significant additional upside may be in the future for shares of NUAN.