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QQQ gamma flipped after bond yields rose and pressured Nasdaq risk
Barchart said the ETF’s options setup centers on puts at the 717/718 strike, with a drop below that level potentially triggering forced selling by market makers.
Barchart Insights said the Invesco QQQ Trust, which tracks the Nasdaq-100, experienced a “gamma flipped” move at 725 as the stock market gapped lower at the start of the week.
The move was attributed to pressure from rising long-term bond rates and a Wall Street Journal report that AI hyperscalers face another $3 trillion in debt and purchase obligations over the next few years, adding to risk sentiment.
Barchart pointed to a cluster of puts at the 717/718 strike level. If QQQ were to fall below that area, market makers could be forced to sell as they hedge open positions, which the outlet said could spark additional put buying and short positions.
Technically, Barchart added that gaps can signal imbalances and, using a Fibonacci approach, projected a 38.2% retracement toward about 706.50, referencing the July 29 low and the prior day’s high.
Latest closeNasdaq Comp. 26,729.16 ▼0.3%