This variable is designed for those calling a Java program from COBOL via the C$JAVA library routine. In this variable, specify the command-line options that you want passed to the JVM when it is started.
Note that both CLASSPATH (java.class.path system property) and the java.library.path must be configured in order for C$JAVA to locate the Java class to run. The CLASSPATH is the location of .jar or .class files. The java.library.path is the location DLLs or shared objects that are required either by the runtime or by the Java Virtual Machine (JVM).
If these properties are not set in the environment, use JAVA_OPTIONS to set CLASSPATH and java.library.path. For example:
JAVA_OPTIONS="-Djava.library.path="c:\usr\lib" -Xms128m -Xmx128m -classpath /java/MyClasses/myclasses.jar"