The Java Saga Continues

This morning, Oracle (NASDAQ: ORCL) CEO Larry Ellision announced that he would try to play ball with the European Commission and create a separate entity to house the MySQL database software that woulThis morning, Oracle (NASDAQ: ORCL) CEO Larry Ellision announced that he would try to play ball with the European Commission and create a separate entity to house the MySQL database software that would be acquired if the transaction goes through. This was the only qualm that the European Commission had about the potential merger between Oracle and Sun Microsystems (NASDAQ: JAVA).

Sun Microsystems was supposed to be acquired many months ago, but regulatory problems have postponed the transaction month after month. Today we are seeing big plays in the options. 9,548 contracts of the JAVA Apr 9.0 puts were bought on the offer for 0.82. This appears to be done against existing long stock. This is a smart play because the long stock holder has immediate protection on the position due to being long the in the money puts, which have a delta of 0.65.

The Dec 8 puts are also having significant volume today..