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

• QQQ’s options market shows a 1.54 put/call open interest imbalance, but heavy call buying at $627–$641 for next Friday hints at upside conviction.
• Technical indicators confirm a short-term bullish trend, with price testing 30D support/resistance at $623.80–$624.35.
• Institutional block trades in June 2026 calls and March 2026 puts suggest long-term positioning amid AI and tech sector bets.

Here’s the takeaway: QQQ is perched on a short-term breakout, with options data and technicals aligning for a bullish push—but watch for volatility shifts as key strike levels loom.

Bullish Sentiment Locked in OTM Calls, Block Trades Signal Long-Term Conviction

The options chain tells a story of cautious optimism. For this Friday’s expirations, puts dominate with $610 (OI: 39,117) and $600 (OI: 37,981) strikes leading the pack. But the real signal comes from next Friday’s chain: QQQ20260116C627 (OI: 56,540) and QQQ20260116C641 (OI: 55,430) are the most watched calls, suggesting traders are pricing in a potential $627+ move. That’s just 0.9% above today’s price—a tight target for a product already riding the tech sector’s coattails.

Don’t ignore the block trades either. A 2,000-lot trade in QQQ20260618C640 (June 2026 expiration) and a 1,000-lot in QQQ20260320P600 (March 2026 put) show institutional players hedging or scaling up for a multi-month bet. These aren’t just noise—they’re blueprints for how big money sees QQQ’s trajectory.

Tech Sector Tailwinds and Fee Cuts Fuel QQQ’s Narrative

The news flow? It’s a one-way street for bulls. Rokos Capital’s fresh QQQ stake, Invesco’s AI and renewable energy focus, and a 0.05% fee cut all reinforce the ETF’s appeal. Even Western Digital’s Nasdaq-100 inclusion adds a wildcard—its AI storage play could juice QQQ’s exposure to high-growth niches. And let’s not forget the dividend boost: $0.7941/share isn’t just for show; it sweetens the deal for income investors without diluting growth potential.

But here’s the catch: QQQ’s RSI at 70.56 is flirting with overbought territory. A pullback to the 200D moving average ($561.26) would be catastrophic for short-term bulls. The good news? The 30D support/resistance range ($623.80–$624.35) lines up with key Bollinger Band levels, giving traders a defined battleground.

Actionable Trades: Calls for Breakouts, Puts for Hedging

If you’re bullish, QQQ20260116C627 is your entry. With QQQ trading at $621.29, a $627 strike gives you 0.9% to break even by next Friday. For a safer play, consider a QQQ20260116P610/600 bear put spread—it caps downside risk while letting you profit if the ETF dips below $610.

For stock traders, here’s the plan:

• Entry: Buy QQQ near $623.29 (the pivot point level) if it holds above $619.84 (today’s intraday low).
• Target: Aim for $631.38 (upper Bollinger Band) if the 30D support/resistance ($623.80–$624.35) breaks.
• Stop: Exit if QQQ falls below $617.92 (middle Bollinger Band), which would signal a shift in momentum.

Volatility on the Horizon: Balancing Bullish Setup and Liquidity Risks

The big question isn’t whether QQQ can go higher—it’s how fast. With AI-driven sectors like semiconductors and cloud computing in the crosshairs, QQQ’s exposure to companies like NVIDIA and Microsoft could amplify gains. But don’t let optimism blind you: the 1.54 put/call ratio isn’t just a number—it’s a reminder that the market is bracing for a potential correction.

Bottom line: This week’s options activity and news flow paint a clear picture. QQQ is primed for a breakout, but the path forward isn’t without potholes. Keep an eye on those $627 and $610 strikes—they’re more than just numbers. They’re the price of the next chapter.