Traders are betting that Microsoft is ready to rebound from last month's selloff.
More than 80,000 September 33 calls traded yesterday, most of them bought for the ask prices in a strongly bullish pattern halfway through the session, according to OptionMonster's real-time tracking systems. The first big blocks priced for $0.19 and $0.21 within 20 minutes and were followed by another chunk for $0.30 a couple of hours later.
These calls lock in the price where investors can buy stock in the software giant no matter how far it might rise. Given how little the options cost compared to the stock itself, they could generate significant leverage in a rally.