Investors considering D-Wave Quantum Inc (QBTS) shares, priced at $20.25, are exploring alternative strategies like selling put options. A notable option is the January 2027 put at a $5 strike, with a current bid of $0.80, yielding a 10.8% annualized return on a $5 commitment.
This strategy allows for a premium collection but does not afford equity upside unless the stock price drops significantly (74.7% or more) and the contract is exercised, resulting in a net cost basis of $4.20 per share.
Current market data shows that put volume among S&P 500 components reached 1.95 million contracts, contrasted with 2.44 million call contracts, leading to an unusual put:call ratio of 0.80 for the day, exceeding the long-term median of 0.65.
