Both Walgreens Boots Alliance (WBA) and The Hershey Co. (HSY) have reportedly become takeover targets. Bloomberg reported that Sycamore partners was in talks to take Walgreens private and also reported that Mondelez International (MDLZ) was interested in buying Hershey. In both cases, the options market indicated there was some unusual interest in the two stocks.

SimplerStocks senior managing director Chris Brecher tells Yahoo Finance that ahead of the reports coming to light, both Walgreens and Hershey "had persistent call buying for weeks, and it was sort of shown in the implied volatility. So you could see that a consistent accumulation of calls in both of them, and that came out with the implied volatility that if you put [implied volatility] on any chart and overlay it with the stock, you'd see how much different it was with Hershey's and Walgreens prior to any action."

So do options traders know something you don't? Find out what Brecher says drives the action in the video above.

To watch more expert insights and analysis on the latest market action, check out more Market Domination here.

This post was written by Stephanie Mikulich.