Sun Microsystems announced today that it's shareholders approved a 1-for-4 reverse stock split that will take effect November 12. The company said the move will not impact the market value as a whole, but that the share price may move up or down after the reverse split takes effect.
JAVA closed down today on the news, slipping nearly 1% to $5.19 per share. Technically, the stock has not held up as well as its technology sector brethren, plunging sharply in recent weeks after being rejected by overhead resistance in the 6 region. Meanwhile, sentiment in the options pits is rather optimistic, which bodes ill for the shares. Currently, JAVA's Schaeffer's put/call open interest ratio (SOIR) of 0.25 indicates that calls quintuple puts among near-term options. Furthermore, this ratio ranks below 83% of all those taken during the past year.