QQQ Options Signal Bullish Bias: Key Strikes and Block Trades Point to Strategic Entry Zones

• QQQ trades near $618.86, with technicals showing short-term and long-term bullish momentum.
• Put/call open interest ratio of 1.53 highlights bearish positioning, but block trades hint at hidden bullish bets.
• Recent news of AI-driven inflows and expense cuts align with a growth narrative, despite December redemptions.

Here’s the takeaway: QQQ’s options market is torn between cautious bears and opportunistic bulls. But technicals and recent fundamentals lean toward a breakout above key resistance. Let’s break it down.

Where the Money Is: OTM Options and Block Trade Signals

The options chain tells a story of conflict. Put open interest dominates (1.5x calls), with heavy bearish bets at $600 and $575 puts expiring this Friday. But don’t ignore the calls: The QQQ20251226C621 (next Friday’s $621 call) has 19,938 open contracts—the highest of any strike. This suggests some big players are hedging for a rally into year-end.

Block trades add intrigue. A $4.2 million sale of the QQQ20251219P545 put (expiring Friday) could signal hedging by large holders. Meanwhile, the QQQ20251219C630 call (5,000 contracts traded) hints at bullish positioning ahead of the close. The message? Bears are guarding the downside, but bulls are quietly loading up on near-term upside.

News That Shapes the Narrative

QQQ’s recent headlines are a mixed bag. Record Q3 earnings and a new clean energy ETF show management is pivoting to capture growth. The expense ratio cut to 0.15% in 2026 is a win for long-term investors. But December’s $1.8 billion in redemptions—driven by tech sector corrections—shows profit-taking is real.

The AI sector’s rebound is the wildcard. QQQ’s 12.5% Q4 return, fueled by NVIDIA and Microsoft, proves its strength in high-growth tech. However, the leadership change to Sarah Lin as CIO adds uncertainty. Will her focus on innovation-driven sectors accelerate gains, or create short-term volatility? Either way, the fund’s DNA remains tied to Nasdaq-100 momentum.

Actionable Trades: Calls, Puts, and Price Levels

For options traders:

• Bullish Play: Buy the QQQ20251226C621 ($621 call expiring next Friday). With QQQ near $618.86, a $621 strike offers 0.4% upside. If the fund closes above $620 by Friday, this call could see meaningful gains.
• Bearish Hedge: Buy the QQQ20251226P600 ($600 put). With Bollinger Bands’ lower bound at $601.79, this strike offers downside protection if volatility spikes.

For stock traders:

• Entry Near Support: If QQQ holds above $609.40 (200D support), consider entries between $609.40–$613.80. A break above $620.71 (intraday high) would validate the bullish case.
• Target Zones: First resistance at $630 (top OTM call strike), then $632.50 (Bollinger upper band). A close above $630 would signal a shift in momentum.

Volatility on the Horizon

The coming days will test QQQ’s resolve. With AI sector optimism and a cheaper expense ratio, the fund has tailwinds. But December redemptions and a bearish options crowd mean volatility isn’t going away. The key is to balance the bullish technicals with caution—use the $600–$610 range as a safety net while targeting the $630+ zone. Either way, this is a stock where the story isn’t over. It’s a game of chess, not checkers. Move carefully, but don’t miss the board.