The First Trust Health Care AlphaDEX Fund (NYSEArca: FXH), which features Salix and Actavis as its fifth- and seventh-largest holdings, respectively, is higher by nearly 2% today as well. Salix, Actavis and Allergan, in that order, combine for over 7% ofFXH’s weight.

Adding some intrigue to the notion of a Salix takeover, one institutional trading desk said there is solid activity today in the Salix November $170 call options. The stock would need to rise nearly 10% to provide profits for buyers of those calls.

The iShares U.S. Pharmaceuticals ETF (NYSEArca: IHE), which allocates a combined 8.6% of its weight to Actavis and Salix, is up 1.8% on volume that is already more than 40% above the daily average.

PowerShares Dynamic Pharmaceuticals Portfolio