Sun Microsystems( JAVA) closed at $8.15. European antitrust authorities formally objected to Oracle's (ORCL) proposed purchase of JAVA, reports the Wall Street Journal. The move is expected to delay the deal from closing. ORCL announced in April it was paying $9.50 in cash per share for JAVA. JAVA December option implied volatility is at 47, January is at 48, April is at 34, above its 21-week average of 21, according to Track Data, suggesting larger price movement.

American International Group (AIG) closed at $35.50. Moody's sees AIG repaying government loans. AIG December call option implied volatility is at 77, puts are at 85; below its 26-week average of 108, according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Netflix (NYSE: NFLX) closed at$44.87. NFLX is presenting at the Citi Tech Conference on September 9. NFLX September option implied volatility is at 42, December is at 47; verses its 26-week average of 52 according to Track Data, suggesting decreasing price movement.

American International Group (NYSE: AIG) closed at $26.64. AIG September call option implied volatility is at 101, puts at 116; verses its 26-week average of 112, according to Track Data, suggesting non-directional price movement.

Options Update: Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com