Option traders took a liking to the technology sector Tuesday, with some of the heaviest interest showing up in old guard names like Lucent Technologies ( LU) and new heavyweight Google ( GOOG).

Sun Microsystems ( SUNW) had call buyers and put sellers ahead of an announcement on a collaborative effort between the company and Google.

The October 4 calls have traded 11,000 contracts, and the January 4 calls have traded 11,000 times. The January 5 calls changed hands 16,700 times, and the October 5 puts traded 7,000 contracts.

Sun and Google are planning to join forces on a software promotion and distribution pact. Google's October 320 calls traded 4,800 times, and the October 330 calls traded 2,100 contracts.

Microsoft ( MSFT) had a seller of the October 25 calls more than 17,500 times, and the contract was trading lower by 35 cents. Microsoft shares were down 51 cents, or 2%, to $24.99.

Lucent continued to have bullish option activity as the stock traded higher. The October 3 calls have traded 7,000 contracts, and 13,200 of the January 2007 calls with a strike at 5 have been exchanged. The stock was higher by 14 cents, or 4.2%, to $3.45.

The decline in oil brought out put buyers in the Energy Select Sector ETF ( XLE). The November 52 puts have traded 10,300 contracts. The open interest for the strike prior to the trade was 300 contracts. The December 50 puts have traded 13,000 times, and 9,300 of the March 55 puts have been swapped. The ETF was down $1.29, or 2.4%, to $52.24.

In the health-care sector, AstraZeneca ( AZN) had a seller of the October 45 puts more than 6,800 times. The strike was lower by 10 cents, while AstraZeneca's stock was up 78 cents, or 1.7%, to $47.78.

The CBOE Market Volatility Index (VIX), which is based on the implied volatility of the S&P 500 options and is used as a gauge for fear in the market, was recently down 2.3% to 12.18. The CBOE Nasdaq Volatility Index, a measure of the implied volatility of the Nasdaq 100, was down 0.3% to 13.93.

To view Mike Marino's video take on today's option action, click here .