A huge trade just happened on the Nasdaq 100. Bulls are taking notice

• The main trade involved purchasing 28,000 call options at the 736 strike for $30 million while selling a 730/740 call spread for $6 million, reducing net cost to $24 million but pushing the breakeven to approximately $750
• QQQ has been trading flat since May 14 and range-bound within roughly 200 points since early May, with its last all-time high recorded on June 3 at around $748
• Total QQQ options volume reached $1.6 billion on Thursday with $944 million in calls, though roughly equal numbers of contracts were bought and sold, suggesting mixed market sentiment despite the large bullish bet

Summary: Major Bullish Options Trade Signals Nasdaq 100 Rally Expectations

A significant $24 million options trade on the Nasdaq-100 index (QQQ) has caught traders' attention as the third-largest options transaction on Thursday, signaling strong bullish conviction in the tech sector.

Key Trade Details

The trader executed a three-part call spread requiring the Nasdaq-100 to reach all-time highs by July 31. The position involved:

• Purchasing 28,000 736-strike calls expiring July 31 for $30 million
• Simultaneously selling 730/740-strike call spreads for $6 million
• Net cost: $24 million with breakeven at approximately $750 (just under $2 above June highs)

Market Context

The Nasdaq-100 has traded range-bound since May 14, with most options activity centered around the $710 level. The index has remained within a roughly 200-point range since early May, with its last high recorded on June 3.

Additional Bullish Activity

Thursday's options flow showed broader bullish sentiment:

• Total QQQ options volume: $1.6 billion, with $944 million in calls
• One of the day's largest trades involved $50 million in S&P 500 ETF (SPY) deep in-the-money calls expiring July 24
• The second-biggest trade was $46 million in nuclear sector calls

Expert Analysis

Scott Bauer, CEO of Prosper Trading Academy, noted the high-risk nature of the trade: "If he doesn't have another position against this, he needs Qs to explode higher... If the index just grinds he's going to get killed."

The trade structure suggests a high-conviction directional bet requiring significant upside movement by month-end.