QQQ Options Signal Key Support Battle: Put Dominance at $600 vs. Call Optimism at $635 – How to Position for Volatility?

• QQQ trades at $611.94, down 0.27% from its intraday high of $618.40
• Put/call open interest ratio stands at 1.54, with heavy put OI at $600 and call OI at $635
• Block trades show $4.2M sold in QQQ20251219P545 puts and $3.475M in QQQ20251219C630 calls

The QQQ options market is locked in a tug-of-war between bears eyeing $600 support and bulls targeting $635 resistance. With the ETF trading just below its 30-day moving average ($615.29) and MACD momentum fading, today’s data paints a stock at a critical inflection point. Here’s what traders need to know: the put/call imbalance suggests a higher probability of a pullback, but the long-term bullish structure remains intact.

The QQQ Options Imbalance: Why $600 Puts and $635 Calls Define the Near-Term Outlook

Put open interest is heavily concentrated at $600 (73,577 contracts), a level that coincides with the lower Bollinger Band ($587.60). This isn’t just bearish positioning—it’s a liquidity trap. If QQQ breaks below $609.32 (today’s intraday low), those puts could create a self-fulfilling cascade of selling. Conversely, call open interest peaks at $635 (41,557 contracts), suggesting institutional buyers are hedging for a rebound. The block trade selling QQQ20251219P545 puts ($545 strike) adds intrigue: someone is betting QQQ won’t collapse below $545, but the $600 puts imply they’re bracing for a sharper drop.

Nasdaq-100 Rebalancing and AI Adoption: Tailwinds for QQQ’s Long-Term Structure

Western Digital’s addition to the Nasdaq-100 index—a key underlier for QQQ—could boost demand for the ETF as passive flows chase the updated benchmark. Meanwhile, agentic AI adoption trends (despite 89% of leaders still relying on human oversight) hint at long-term tailwinds for tech-heavy QQQ. The challenge? Short-term volatility from options expiration (Friday, Dec 19) could overshadow these fundamentals. The recent 1.7% pop in WDC shares shows how index inclusion can spark momentum, but QQQ’s 200-day moving average ($550.01) remains a psychological hurdle.

Actionable QQQ Trades: Puts to Hedge Downturn, Calls for Rebound Potential

For options traders:

• Buy QQQ20251219P600 puts if QQQ closes below $610 tomorrow. The $600 strike offers defined risk (premium paid) and aligns with heavy open interest.
• Sell QQQ20251226C635 calls to capitalize on the $635 liquidity wall. If QQQ rallies to test this level, the calls could create selling pressure.

For stock traders:

• Consider entry near $609.32 (today’s low) if QQQ holds above its 200-day MA. A break above $622.79 (30-day support) would validate the long-term bullish trend.
• Set a hard stop at $590—the next level of support based on Bollinger Bands and open interest concentration.

Volatility on the Horizon: Navigating QQQ’s Crossroads

The coming days will test whether QQQ’s long-term bulls can overcome near-term bearish positioning. With RSI at 69.87 and MACD histogram shrinking, the technicals lean toward a consolidation phase—unless the Nasdaq-100 rebalancing sparks a surprise rally. Traders should watch the $610–$615 range closely: a break below triggers the puts; a rebound above $623 validates the calls. Either way, the options market has already priced in a volatile finish to the week.