FACTBOX - Hamas's options in Gaza

(Reuters) - Hamas is preparing for a possible Israeli offensive in the Gaza Strip against Palestinian militants carrying out cross-border rocket attacks.

Here are some of the options it has faced since seizing control of Gaza in June:

TRUCE

Hamas has signalled its willingness to reach a ceasefire with Israel that would end rocket launches by Hamas and other militant organisations. In return, Hamas wants Israel to cease all military strikes in the Gaza Strip and occupied West Bank. It also demands Israel lift a two-year-old blockade of Gaza that has deepened hardship among the territory's 1.5 million people.

Calm in the Gaza Strip and an improvement in the economic situation, particularly reopening trade routes through Israel and Egypt, could give boost the popularity of Hamas in its power struggle with Palestinian President Mahmoud Abbas, whose Fatah faction holds sway in the West Bank.

PRISONER EXCHANGE

Gilad Shalit, an Israeli soldier abducted by Hamas and other fighters in 2006, could be used as a bargaining chip to dissuade Israel from invading the Gaza Strip.

Hamas officials said relatively little progress had been made in third-party talks, involving Egypt, on a deal that would free Shalit and several hundred Palestinian prisoners.

COMBAT