GO
Loading...

Enter multiple symbols separated by commas

Deals In The Sun

Does IBM's reported deal to buy Sun Microsystems for $8 billion signal the start of consolidation in the Tech space?

That appears to be the thinking from some options traders. Valuation in the sector remains low, and a number of companies are sitting on a pile cash. Look no further than Microsoft. The software giant is sitting on little over than $20 billion in cash. Oracle has $11 billion on hand.

Perhaps that's why we saw such bullish call activity on (NTAP) this week, mostly centered around the 15 and 17.5 strikes.

"Once the Java, news came out, the chatter instantly turned to (NTAP)," said "Options Action" star Stacey Gilbert.

So what are the chances that a deal gets done?

For that you'll have to tune in tonight.

Also On CNBC.com:

  • Oracle Soars Past Expectations
  • The Sun Also Rises, Thanks To IBM

Questions, comments send them to us at: optionsaction@cnbc.com

Contact Options Action

  • Showtimes

    Fridays, 5:30p ET
    Saturday, 6a ET
    Sunday, 6a ET
  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

Sponsored Related Links

More on thinkorswim by TD Ameritrade

  • Make sure you’re always keeping up with the market with up-to-the-minute news and breaking stories. Move on possible breakout stocks and options with potential opportunity. Plus, get in-depth analysis on futures and forex in one seamless, integrated experience. Join TD Ameritrade and trade commission-free for 60 days + get up to $600 cash.