Buying DOCU call contracts.

DocuSign Inc. (DOCU) is one of the speculative tech stocks that has fallen far out of favor with investors.

But now that the stock has given up more than two-thirds of its peak value, the company may turn out to be an attractive buyout candidate for a blue-chip tech stock like Microsoft or

With the overall market now oversold and primed for a bounce, I’d like to start nibbling on some rebound candidates. After all, some of the sharpest rallies occur during bear markets (and this is definitely a bear market for tech stocks).

Buying in-the-money call contracts today gives us a chance to profit if DOCU receives a buyout offer — or just moves higher as the market rebounds. This approach also helps manage risk as these calls will retain some value even if shares continue to decline.