Noteworthy Friday Option Activity: LULU, AVGO, U

Broadcom (AVGO) and Unity Software (U) are experiencing exceptionally high options trading volumes today, significantly exceeding their average daily share volumes. AVGO's options volume reached 690.3% of its average, with notable activity in the September 2025 $340 call option (58,698 contracts), while U's options volume was 226.3% of its average, with the September 2025 $40.50 call seeing high interest (30,706 contracts). This elevated, long-dated call activity suggests significant directional bets or hedging strategies are being deployed in these names.

Analysis

Broadcom (AVGO) and Unity Software (U) are exhibiting extraordinary options market activity, indicating significant institutional positioning. AVGO's options volume surged to 690.3% of its average daily share volume, with a notable concentration of 58,698 contracts in the September 2025 $340 strike call. Given this strike is deep-in-the-money, this activity likely represents a capital-efficient stock replacement strategy, signaling strong bullish conviction with a long-term horizon. Concurrently, Unity Software's options volume reached 226.3% of its daily average, with heavy trading of 30,706 contracts in the September 2025 $40.50 strike call. This activity, likely in out-of-the-money or near-the-money options, points toward more speculative bullish bets on the company's long-term growth or recovery potential. The long-dated nature of the highlighted contracts in both tickers suggests these are not short-term speculative plays but rather strategic, multi-year positions being established.

Key Decisions for Investors

• The unusual, long-dated call volume in both AVGO and U warrants close monitoring, as it may signal significant institutional interest and could foreshadow future price movements or increased volatility.