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Options traders focused on technology companies Monday as stocks in the sector managed to eke out minor gains despite a slump in the broader market.

Trading in Microsoft was particularly noteworthy, as investors picked up 133,000 "calls" that allow them to buy the company's stock and 87,000 "puts" that allow them to sell it, according to Trade Alert.

The bulk of the action took place early in the session, when one investor pursued a "strangle" in Microsoft's January contractsThe investor in this case bought January $15 puts and January $25 calls, looking for the company's stock to stage some decent-size moves -- in either direction -- before early next year.

The position cost $1.55 and makes money if Microsoft dips below $13.45 or jumps above $26.55The stock closed the session at $19.32, losing less than 1%.

The day's action coincides with a decision by Microsoft to issue $3.75 billion worth of bonds, marking the first time the company has issued long-term debt.

The move prompted investors and analysts to wonder whether Microsoft would use the newly raised cash to buy another companyGerman software company SAP surfaced as a possible target.

SAP Co-Chief Executive Leo Apotheker declined to comment on the rumors while speaking at a roundtable discussion.

Trading in SAP zipped to six times the normal level, with investors picking up 20,000 calls and 4,000 putsThey showed interest in June $42.50 calls, as well as longer-dated September $45 calls.

The stock closed at $39.95, up 1.8%.

Elsewhere in the options market, traders rallied around Advanced Micro Devices and National Semiconductor.

In Advanced Micro Devices, traders gravitated toward July $5 calls, looking for the company's stock to move higher in coming weeksAdvanced Micro Devices closed at $4.22, gaining 29 cents, or 7.4%.

In National Semiconductor, meanwhile, investors showed up to roll out bullish positions, selling June $12.50 calls and buying August $12.50 callsThat company's stock closed at $12.23, losing less than 1%.

Although much of the day's activity reflected bullish expectations, the trading in Applied Materials took on a more bearish tone.

With the company scheduled to release second-quarter results after the bell Tuesday, investors scooped up batches of June $10 puts, looking to protect their stock portfolios against declines or to speculate on such moves taking place.

Applied Materials closed the session at $11.78, losing 0.9%.

In VeriSign, meanwhile, investors pursued bearish one-by-two "put spreads" -- buying September $25 puts and selling twice as many September $20 putsThe position costs $1 and makes money if VeriSign shares slip below $24 before September 18.

VeriSign closed at $24.19, losing less than 1%.