QQQ Options Show Bullish Skew at $625 Call as Put Open Interest Soars—Here’s How to Play the Volatility

• QQQ trades at $619.65, down 0.68% from its 52-week high of $623.89, but remains above its 30D and 200D moving averages.
• Put/call open interest ratio hits 1.61, with $600 puts (OI: 59,494) and $625 calls (OI: 13,275) as top contenders for Friday expiration.
• Block trades totaling $14.9M in puts and calls hint at institutional positioning ahead of key support/resistance levels.

The market is sending mixed signals: QQQ’s technicals point to a short-term bullish trend, but options data reveals a surge in downside protection. Let’s break down what this means for traders today.Bullish Calls vs Bearish Puts: A Battle for QQQ’s Direction

The options chain tells a story of cautious optimism. For Friday expiration (Jan 2, 2026), the $625 call (OI: 13,275) and $630 call (OI: 9,079) show strong bullish conviction, while the $600 put (OI: 59,494) dominates bearish sentiment. This imbalance suggests traders are hedging against a potential pullback but remain open to a rally above $622.58 (200D support-turned-resistance).

Block trades add intrigue. A $4.2M sale of the QQQ20251219P545 put (expiring Dec 19) and $3.5M in $630 call purchases (QQQ20251219C630) signal large players securing downside protection while betting on a rebound. The $619.03 intraday low today tests the 200D support at $605.24—break below that, and the $600 put strike could see explosive action.

Dividend Hike and Institutional Buying: Why QQQ’s Fundamentals Stay Strong

Despite today’s dip, QQQ’s fundamentals remain intact. The 14.2% dividend increase (now $0.7941/quarter) and institutional buying by WorthPointe LLC ($3.13M stake) reinforce its role as a tech-growth proxy. Analysts still see a 2.18% upside over 3 months, with support levels at $616.53 and $614.07 acting as key floors.

But here’s the catch: the ETF’s 10-day price action (up 6 of 10 days) clashes with its 0.68% daily drop. Retail traders might be fading the pullback, but the $624.18 projected open tomorrow suggests volatility isn’t over yet. If the Nasdaq-100’s tech darlings rebound, QQQ could reclaim its 30D MA at $613.52 and test the $622.77 intraday high.

3 Trade Setups to Consider Today

1. Bull Call Spread (Friday Expiry): Buy the $625 call (OI: 13,275) and sell the $630 call (OI: 9,079). QQQ needs to close above $625.50 to profit, aligning with the 200D resistance at $622.59.
2. Protective Put (Next Friday): Buy the $600 put (OI: 46,105) expiring Jan 9, 2026. This caps downside risk if QQQ dips below $614.07 support, with a stop-loss at $599.39 (-3.93%).
3. Stock Entry at $616.53: If QQQ holds above $614.07, consider buying the dip at $616.53 with a target at $626.98 (200D resistance). Use the $600 put as insurance if needed.

Volatility on the Horizon: What to Watch Next

QQQ’s path hinges on three factors:

• Can it hold above $614.07 without triggering a cascade of puts at $600?
• Will the $625 call OI translate to a breakout above $622.59?
• How do tech earnings (Microsoft, Amazon report next week) influence the Nasdaq-100?

For now, the data leans bullish but with a healthy dose of caution. QQQ isn’t a free ride—it’s a tightrope walk between $600 and $630. Position yourself with options that let you ride the trend while capping risk. After all, in this market, it’s not about predicting the future—it’s about preparing for every possible one.