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

• QQQ trades at $628.43, clinging to a 0.2% intraday gain amid a short-term bullish Kline pattern.
• Options data shows a 1.54 put/call open interest ratio, with heavy put OI at $610 and call OI at $650.
• Block trades hint at whale activity: 2,500 contracts traded on March 2026 $635 calls and June 2026 $620 puts.

Here’s the takeaway: QQQ’s options market is painting a picture of cautious optimism. While puts dominate open interest, the concentration of call volume at key strikes suggests institutional players are quietly positioning for a breakout. Let’s break down what this means for traders today.

Bullish Whispers in the Options Chain

The options chain tells two stories. First, this Friday’s expiring OTM calls peak at $650 (OI: 42,010) and $760 (OI: 39,078), while puts max out at $610 (OI: 81,882). That’s a tight support cluster around $610–$620 and a call-heavy resistance zone above $650. Second, the put/call ratio of 1.54 (favoring puts) feels bearish at first glance—but dig deeper: 81% of put OI is concentrated below $600, while call OI above $650 is 3x larger than the next strike. This suggests hedgers are buying deep puts for downside protection, while speculators are stacking calls for a rally.

Block trades add intrigue. A 2,500-lot sale of QQQ20260130C633 calls (expiring Jan 30) and a 500-lot sale of QQQ20260618P620 puts (June 2026) hint at positioning for near-term volatility and a longer-term floor at $620. The March 2026 $635 call block ($4.2M turnover) could signal a whale betting on a 7.5% move by midyear.

News That Fuels the Narrative

Recent headlines about QQQ’s AI exposure and its role as a tech proxy align with the options data. The ETF’s focus on Nasdaq 100 heavyweights like NVDA and AAPL makes it a natural beneficiary of AI-driven growth narratives. However, the FDN ETF’s 8% annual return (vs. QQQ’s 18%) in the past year shows investors aren’t blindly chasing QQQ—some are hedging or diversifying. This explains the put-heavy open interest: traders are buying insurance against a potential rotation out of tech.

Actionable Trade Setups

For options traders, two strikes stand out:

• QQQ20260116C650 (this Friday’s $650 call): Buy if QQQ breaks above the upper Bollinger Band at $631.48. The 42,010 OI suggests liquidity, and a close above $650 would trigger profit-taking from the heavy call pileup.
• QQQ20260123C630 (next Friday’s $630 call): A cheaper alternative for a more conservative breakout. QQQ needs to hold above its 30D MA ($619.73) to justify this play.

For downside protection:

• QQQ20260123P620 (next Friday’s $620 put): Buy if QQQ dips below $624.34 (30D support). The 7,245 OI at this strike offers a balance of liquidity and strike depth.

Stock traders should watch these levels:

• Entry near $623.80 if QQQ holds above its 200D MA ($562.64). Use the $624.34 resistance as a buy zone.
• Exit near $631.48 (upper Bollinger Band) or $650 (call-heavy zone) for a 0.9%–5.8% gain.

Volatility on the Horizon

The coming days will test QQQ’s resolve. A break above $631.48 could trigger a short-covering rally, while a drop below $623.80 might force puts into play. The block trades suggest volatility isn’t ending soon—position yourself to ride the waves, not fight them.