Options Traders Target Microsoft

Traders are decidedly bullish on Microsoft options Tuesday after a positive report from Oppenheimer.

The average daily volume in November for MSFT was 80,000 calls per day, but 49,000 contracts changed hands in the first hour of trading today alone. That includes more than 12,500 contracts each traded at the January 20 and April 21 strikes, according to OptionMonster's tracking systems.

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About 11,500 calls are trading at the February 20 strike and 4,800 at the February 21. That dwarfs put activity, as only 10,000 puts trade against 49,000 calls for a 0.21 put/call ratio.

Microsoft shares are trading roughly flat around $19.13 at midday. Oppenheimer says it would be a buyer of the stock at current levels, adding that a 10 percent headcount reduction at the software giant would offset $3 billion of revenue declines and generate about $0.10 per share of savings.

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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.