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

• QQQ trades at $624.41, perched above its 30D moving average ($613.43) and tightening into upper Bollinger Bands ($632.72).
• Options data shows heavy call open interest at $625 and $627 strikes, while block trades hint at institutional positioning ahead of Friday’s expiry.
• Put/call open interest ratio (1.55) suggests cautious optimism, but bullish momentum metrics (MACD, RSI) favor a breakout above $628.

Here’s the takeaway: QQQ is primed for upside. Technicals, options flow, and block trades all align with a short-term bullish bias. Let’s break down why this setup matters—and how to trade it.

Bullish Sentiment Locked in OTM Calls, Block Trades Signal Caution

The options chain tells a story of conviction. For this Friday’s expiry (2025-12-26), QQQ20251226C625 and QQQ20251226C627 dominate with open interest of 18,166 and 14,654 contracts respectively. These strikes form a "call wall" just above the current price, suggesting institutional players are hedging for a push above $628. Meanwhile, the QQQ20251226P600 put (OI: 13,529) acts as a floor—money managers aren’t pricing in a sharp drop below $600.

Block trades add nuance. A $4.2M sale of QQQ20251219P545 (put strike $545) ahead of last Friday’s expiry shows hedging activity, but recent large call trades (e.g., QQQ20251219C630 with $3.5M turnover) confirm aggressive positioning for a breakout. The message? Buyers are ready to defend QQQ’s upward trajectory.

No Major News, But Technicals Drive the Narrative

There’s no recent headline risk for QQQ—no earnings, product launches, or regulatory shifts in the 3–4 day window. That means the move is purely technical. QQQ’s role as a Nasdaq-100 proxy means it’s amplifying broader market optimism. With RSI at 50.8 (neutral) and MACD (1.51) above its signal line (1.21), the momentum is building. Traders are betting on a retest of Bollinger Bands’ upper channel ($632.72) before year-end.

Actionable Trades: Calls for Short-Term Gains, Stock Breakouts

For options traders:

• QQQ20251226C625 (this Friday expiry): Buy the call if QQQ closes above $625.50. Target $630 for 15%+ gains in 3 days.
• QQQ20260102C630 (next Friday expiry): A safer play if you want to extend the window. QQQ needs to hold above $624.70 to justify the trade.

For stock investors:

• Entry near $623.14 (intraday low) if QQQ holds above its 30D MA ($613.43).
• Target zone: $632–$635 if the 200D MA ($554.94) continues to act as a floor.
• Stop-loss at $618.74 (middle Bollinger Band) to protect against a pullback.

Volatility on the Horizon: Position for Year-End Flows

The data paints a clear picture: QQQ is in a "rally mode" with institutional support. The key risks? A breakdown below $618.74 would trigger puts like QQQ20260102P610 (OI: 10,415), creating downward pressure. But with long-term bullish trends (200D MA rising) and block trades favoring calls, the bias remains higher.

Bottom line: This week’s options activity isn’t just noise—it’s a roadmap. If you’re in, target $630. If you’re out, watch the $623.14 level. Either way, QQQ isn’t done making headlines in 2025.