Large buyers charge into Microsoft

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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.

Microsoft rose 1.52 percent to $32.66 yesterday, coming back from its intraday low after the options began to pop. The stock gapped down from above $35 on July 19 after the company reported weak quarterly results and lowered guidance. It also took a $900 million charge for its faltering Surface tablets.

Total option volume in the name was almost triple its daily average for the last month. Overall calls outpaced puts by more than 5 to 1, a further indication of the session's bullish sentiment.

—By CNBC Contributor David Russell

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Mike Yamamoto is managing editor for OptionMonster. Yamamoto has no positions in MSFT.