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

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