NEW YORK -- SAP (SAP) - Get Report has been trying to rebound from a drop last year, and bullish option traders are jumping on board.

OptionMonster's Heat Seeker system detected the purchase of 10,000 April 70 calls, dwarfing the previous open interest of just 160 contracts, which shows that new money was at work. The initial blocks priced for $1.55 to $1.65, but premiums climbed to $2.55 as the shares advanced. 

Long calls lock in the price where investors can buy a stock, which allows them to profit from a rally with limited cost. They can also generate significant leverage on a percentage basis, as we saw Wednesday. 

SAP was up 1.34% when the options first traded but continued higher and ended the session up 2.84% to $70.97. The German software giant began last year around $85 but crumbled in the second half as business slowed and currency headwinds weighed on euro-denominated assets. 

Investors may now have more confidence in the stock after a dovish statement from the  Federal Reserve pushed the dollar lower Wednesday. In addition, rival Oracle (ORCL) - Get Report reported strong quarterly results Tuesday evening. 

Overall option volume in SAP was 56 times greater than average Wednesday, with calls accounting for a bullish 95% of the total.

-- Written by David Russell of OptionMonster

Russell doesn't have positions in any of the stocks mentioned.