Large "bets" before an expected take over can attract the attention of  the US Securites Exchange Commision. One such below involves the Canadian Oil producer Nexen and China's CNOC. The bid is over $1.5 billion and Nexen trades have been active ahead of it.  This shows the role the SEC plays in protecting traders from insider deals.

Big Nexen option trades before deal raise eyebrows

"(Reuters) – A number of large, well-timed bullish bets in the options of Canadian oil producer Nexen ahead of a takeover deal announced Monday has raised eyebrows among some options market watchers, who said the activity could draw the eye of U.S. …"
http://in.reuters.com/article/2012/07/23/us-cnooc-nexen-options-idINBRE86M19P20120723

This shows when trading Options you have to be careful and look more to buiding a strong and steady income. You could make a lot of money from the trades above but also there is a huge risk of very heavy losses , especially if the regulators step in.