Sun Micro (JAVA) is up 77 cents to $9.13 after Oracle (ORCL) said it is in constructive talks with EU about its proposed takeover of JAVA. Recent options trades include a put ratio spread, where an investor bought 7000 Jan 9 puts at 17 cents and sold 24000 Jan 7.5 puts at a nickel. This might close or roll a protective position in light of today’s news. ( 5250 Jan 9 puts and 14000 Jan 7.5s puts, which also traded this morning, were recently canceled.)