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

• Invesco QQQ Trust (QQQ) shareholders approved a fee cut to 0.18%, boosting long-term appeal.
• Western Digital’s Nasdaq-100 inclusion adds AI/cloud exposure, directly benefiting QQQ’s portfolio.
• Options data shows heavy put open interest at $615 and call OI at $621–$640, hinting at a bullish/bearish tug-of-war.

Here’s the takeaway: QQQ’s price action and options flow suggest a bullish bias with defined risks. The ETF is trading near its 30-day moving average, supported by strong technicals but facing near-term resistance at 622.58–626.98. Let’s break down what’s driving this setup and how to position for it.

Bullish Sentiment in Options, But Caution at Key Levels

The options market tells a story of cautious optimism. For Friday’s expiring contracts (Jan 2, 2026), the top OTM calls cluster between $621 and $640, with the $621 strike holding 18,269 open interest. That’s a tight band just above the current price—like a crowd gathering at the edge of a cliff, ready to push higher if QQQ breaks out. Conversely, puts dominate at $615 (65,668 OI) and $600 (59,718 OI), signaling a bearish safety net if the ETF stumbles.

Block trades add intrigue. A massive 5,000-lot sale of the QQQ20251219P545 put (expiring Dec 19) suggests institutional players are hedging downside risk. Meanwhile, mystery call trades on Dec 19 contracts (like QQQ20251219C630) with $3.475M turnover hint at big money testing the 630 level as a psychological hurdle.

News Flow: Fee Cuts and AI Exposure Fuel the Narrative

The 0.02% fee reduction approved by shareholders isn’t just a cost win—it signals management’s commitment to staying competitive in a crowded ETF space. Combine that with Western Digital’s Nasdaq-100 entry, and you’ve got a double boost for QQQ’s AI/cloud exposure. This isn’t just about numbers; it’s about positioning the fund as a gateway to tomorrow’s tech growth. Retail investors might not yet be pricing this in, but the options flow suggests smart money is already moving.

Actionable Trades: Calls for Breakouts, Puts for Protection

For options traders, the QQQ20260109C625 (Jan 9, 2026 expiry) stands out. With 3,537 open interest and QQQ hovering near 620.64, a close above 622.58 (200D resistance) could trigger a rally toward 630. This call offers leverage if the ETF confirms its bullish trend. Conversely, the QQQ20260109P615 (51,279 OI) acts as a hedge if volatility spikes—ideal for those holding long QQQ positions.

Stock traders should watch 619.30 (middle Bollinger Band) as a key support. If QQQ holds here, consider entries near $619.50 with a target at 625. A break below 615 would invalidate the bullish case, making the QQQ20260109P600 (51,279 OI) a critical stop-loss level.

Volatility on the Horizon: Positioning for QQQ’s Next Move

The coming weeks will test QQQ’s resolve. With the RSI at 47.14 (neutral territory) and MACD above its signal line, the technicals favor a rebound. But the heavy put open interest at $615 means a sharp pullback isn’t out of the question. Your best bet? A balanced approach: long calls for upside potential and short puts to collect premium if the ETF consolidates. Either way, the stage is set for a breakout—or breakdown—that could reshape QQQ’s trajectory in 2026.