A notable options trade on QQQ showed up today with the following details: a put option at the $575 strike expiring on March 31st, 2026. The trade was executed as a sweep order, signaling urgency for immediate fill. It involved 320 contracts at a price of $36.23, with a total premium of approximately $1.2 million.
The spot price of QQQ at the time was $559.67, deeming this traded contract in-the-money. Notably, volume for this contract reached 325 contracts. This suggests that the vast majority of the day’s trading activity was represented by this one trade. Against an open interest of 1,134, V/OI comes in at about 0.29. With over half a year until expiration, this long-dated put suggests a sizable hedge or directional bet on QQQ over the long term.
Volume and Open Interest Data
Trading data shows a significant spike in activity for the QQQ $575 puts expiring March 31st, 2026. On September 2nd, trading volume surged to 325 contracts. Meanwhile, open interest stood at 1,134 contracts, resulting in a V/OI ratio of about 0.29. The contracts closed at $36.36 with an implied volatility of 19.77%. It is worthwhile to note that QQQ’s implied volatility spiked in pre-market trading. The previous trading session did not see any trading activity for this contract.
Trade Side Distribution
The trade side distribution for the QQQ $575 puts expiring March 31st, 2026 shows that the majority of activity occurred on the buy side above the ask. A total of $1.2 million (60%) was executed above the ask, while another $761.2K (40%) went off at the ask price.
Notably, no trades were recorded at the bid, mid, or below levels. This breakdown highlights a complete absence of sellers for this contract. Additionally, it signals strong conviction from buyers willing to pay a premium to secure contracts.
More Notable Options Trades Observed
Additional heavy put buying on QQQ showed up amongst short-term expiries as well. The above option order flow shows a large put sweep trade on QQQ, targeting the $550 strike with an October 31, 2025 expiration. The order involved 2,537 contracts executed at $11.55 per contract, totaling a premium of about $2.9 million.
The trade cleared when QQQ was trading near $564.55, placing the puts slightly out-of-the-money. Volume for the session hit 2,649 contracts. This is slightly higher than the open interest of 2,134, giving a V/OI ratio above 1.2. The fact that the trade was executed as a sweep above the ask highlights urgency and aggressiveness from buyers. Such trading behavior is consistent with the previously highlighted QQQ put option trade discussed above.
What’s Happening with QQQ
QQQ’s stock experienced a significant pullback today, marking a drop of over 1% from the previous session. Tech stocks, along with the general market, broadly sold off amid concerns over tariff uncertainty and rising bond yields. The tech-heavy Nasdaq 100, which QQQ tracks, fell steeply during today’s trading session, driven by steep declines in major tech names like Nvidia and Amazon.
This weakness aligns with a well-known historical pattern, as September has a reputation for being a challenging month for US equities. This phenomenon is often referred to as the “September Effect.” Since 1928, the US equities have declined by an average of 1.2% in September, marking it the weakest month of the year for stocks, with declines occurring more often than not due to factors like portfolio rebalancing, tax-loss selling, and diminished retail spending after summer vacations.
About QQQ
The QQQ ETF, officially known as the Invesco QQQ Trust, is one of the most popular and actively traded exchange-traded funds in the world. It tracks the performance of the Nasdaq-100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq Stock Market.
This ETF is heavily weighted toward major technology and growth-oriented stocks. Such stocks include industry giants like Apple, Microsoft, Nvidia, Amazon, and Meta. QQQ is widely used by investors to gain exposure to the tech sector and the broader innovation-driven U.S. economy. Its high liquidity, strong performance history, and tight spreads make it a favorite among both institutional and retail traders.
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Disclaimer: Options trading involves significant risk and is not suitable for all investors. You may lose the entire investment, and certain strategies may result in losses exceeding the initial amount invested. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice. Always consult a financial or tax advisor before making investment decisions.
