Notable Tuesday Option Activity: AMAT, Z, LULU

Zillow Group Inc (Z) and Lululemon Athletica Inc (LULU) witnessed notable options trading activity today, with Z's volume reaching 41.5% and LULU's 40.4% of their respective average daily trading volumes. Specifically, high volume was observed in Z's $76 strike put option expiring October 2025 (3,560 contracts) and LULU's $320 strike put option expiring January 2026 (2,600 contracts), indicating significant investor interest or potential bearish positioning in these long-dated options.

Analysis

Zillow Group (Z) and Lululemon Athletica (LULU) experienced significant options market activity, with total options volume reaching 41.5% and 40.4% of their respective average daily trading volumes. The activity was highly concentrated in specific long-dated put options, indicating potential hedging or directional bearish sentiment from market participants. For Zillow, a notable 3,560 contracts of the $76 strike put expiring October 2025 were traded. Similarly, Lululemon saw 2,600 contracts of the $320 strike put expiring January 2026 change hands. The substantial volume in these specific long-term puts, representing approximately 356,000 underlying shares for Zillow and 260,000 for Lululemon, suggests that institutional-level investors may be positioning for a potential decline or protecting significant long positions against future downside risk in these two stocks over the next one to two years.

Key Decisions for Investors

• Investors holding Zillow and Lululemon should recognize this significant put buying as a potential indicator of institutional hedging or bearish sentiment, warranting a review of their own risk exposure.