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

Tech bulls may not have to wait much longer for fresh highs, if the single-biggest trade in the Invesco QQQ Trust ETF on Thursday is any indication. The trader spent $24 million on a three-part call spread that needs the Nasdaq-100 index to make an all-time high by the end of this month, a high-conviction directional bet and the third-biggest trade among all options exchanged on Thursday.

Despite recent volatility, the Nasdaq 100 has been effectively flat since May 14. The index last made a high on June 3, with most options volume centering around the $710 level, according to data from ThinkOrSwim. At the same time, the S&P 500 has been trading in a roughly 200-point range since early May.

The main piece of the bullish position, executed about 90 minutes after the opening bell, was a $30 million purchase of 28,000 736-strike calls expiring July 31. At the same time, the person sold $6 million worth of the 730/740-strike call spread expiring the same date, lowering the cost of the trade, but pushing the breakeven up to about $750 – less than $2 above the QQQ high from early June.