Penn National Gaming (NDAQ: PENN) shares moved higher today followed by their call options after rumors surfaced that the company may be on the block. Call options on the stock were particularly volatile as the company was scheduled to receive $1.4 billion in compensation from FIG and Centerbridge Partners after canceling their $67 per share buyout offer.

Last quarter, Penn National posted lower profits citing difficult economic conditions. Second quarter profits came in at $37 million, or 42 cents per share, compared to $38.3 million, or 43 cents a share, a year earlier. The lower results are likely due to a decrease in traffic to casinos thanks to a general slowdown in consumer spending. This has made casino stocks relatively cheap and could spur some M&A activity.

Penn National Gaming is a diversified, multi-jurisdictional owner and operator of gaming properties, as well as horse racetracks and associated off-track wagering facilities (OTWs). It owns or operates 19 gaming properties located in Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario.