On Thursday, a trader executed a notable $24 million three-part call spread in the Invesco QQQ Trust ETF, betting that the Nasdaq-100 index will hit an all-time high by the end of July. This trade, which is the third-largest among all options traded that day, involved purchasing 28,000 736-strike calls while simultaneously selling a $6 million call spread to reduce costs.
The breakeven point for this trade is set at approximately $750, just above the recent high of $748.50 reached in early June. Despite the Nasdaq-100 being relatively flat since mid-May, this high-conviction bet reflects a strong belief in a forthcoming rally.
Scott Bauer, CEO of Prosper Trading Academy, noted that if the trader does not have other positions to hedge against this bet, they will need a significant upward movement in the index to avoid losses. Additionally, the overall options market for QQQ saw $1.6 billion in trades, with a balanced number of calls bought and sold, indicating mixed sentiment among investors.
Other notable trades included bullish positions in the S&P 500 ETF and the nuclear company Oklo, further highlighting a trend of optimism in the market