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

• Invesco QQQ Trust (QQQ) shareholders approved a structural shift to an open-end fund, boosting liquidity and institutional appeal.
• Options data shows heavy call open interest at $625 and $630 strikes, while puts dominate at $600 and $590.
• Block trades suggest institutional confidence in QQQ’s near-term support levels and upside potential.

Here’s the takeaway: QQQ’s options market is painting a picture of cautious optimism. With the stock trading at $621.03 and perched just above its 200-day moving average ($553.44), the technicals and options data align on a key theme—upside potential if the ETF breaks out of its recent consolidation. But let’s dig into why this matters for traders today.

Bullish Imbalance in OTM Calls, Bearish Caution in Puts

The options chain tells a story of divided sentiment. For this Friday’s expiration (Dec 26), the top OTM call strikes are clustered between $625 and $635, with the $625 strike leading at 14,802 open interest. This suggests traders are pricing in a potential push toward $630+ in the short term. Meanwhile, puts are heavily concentrated at $600 and below, with the $600 strike holding 12,610 open interest. The put/call ratio of 1.52 (favoring puts) hints at lingering bearish caution, but the stock’s 30-day support level ($608.32–$609.16) remains intact.

Block trades add intrigue. A massive 5,000-lot sale of the QQQ20251219P545 put (expiring Dec 19) suggests large players are hedging downside risk below $545. Separately, the QQQ20251219C630 call block (5,000 contracts) implies bets on a near-term rally to $630. These moves signal a strategic balance: bulls are positioning for a breakout, while bears are bracing for a pullback.

Structural Changes and Dividend Hikes Fuel Optimism

The recent news flow reinforces the bullish case. QQQ’s conversion to an open-end fund is a game-changer. By reducing tracking error and improving redemption mechanics, this shift should attract more institutional capital—a tailwind for liquidity and price stability. Pair that with a 14.4% dividend increase (ex-dividend today at $0.7941/share), and you’ve got a compelling story for income-focused investors.

Institutional buying in QQQ also tells a tale. Firms like Kingstone Capital and JPMorgan added 704,593.7% and significant positions, respectively, in Q3 2025. This kind of activity isn’t accidental—it’s a vote of confidence in QQQ’s role as a tech proxy, especially with AI-driven growth picking up steam.

Actionable Trade Ideas for QQQ

For options traders, the QQQ20260102C625 call (expiring Jan 2, 2026) stands out. With 7,639 open interest and QQQ currently at $621, this strike offers a sweet spot: it’s just shy of the 20-day moving average ($617.14) and within striking distance of the upper Bollinger Band ($632.50). A breakout above $625 could trigger a rally toward $630–$635.

On the bearish side, the QQQ20260102P610 put (10,822 open interest) is a hedge if QQQ stumbles. With support at $609.40 (200D support), a drop below $617.14 could test this strike. For stock traders, consider entries near $617.14 (middle Bollinger Band) with a target at $630 and a stop-loss below $609.40.

Volatility on the Horizon

The coming weeks will test QQQ’s resolve. The structural shift to an open-end fund and AI-driven tech optimism are tailwinds, but valuations remain stretched. The key is to balance aggression with caution—use the options chain to lock in risk-reward ratios while keeping an eye on the 200D moving average as a critical psychological level. If QQQ holds above $609, the bulls have a clear path to reclaim the $630+ zone by early 2026.