Pandora is a sufficiently volatile name with typically decent short interest (16%, as of 2/29/16), so when a rumor crossed the wires at 9:36am that it "may be exploring a sale" I bought some APR
10 Calls pretty much sight-unseen. The stock was only up 2%, but the ATM bid/ask spreads were raging! Since then, the rumor has been given "credence," and the stock has continued to rise, up now >11% on the day. I don't have the data readily available to crunch the typical "sale process" rumor pop, but as long as the rumour stays intact, the technicals look like the stock is ripe to touch 11.50 and possibly run up to a gap-fill at 13.
Option-implied probabilities have "even money" on the stock touching 12.18 by APR
Since Tuesday's close, $P implied volatility
has risen from the 23.5 to 31.8 percentile.