D-Wave Quantum Inc. Puts Present an Attractive Alternative for Investors

Investors considering a purchase of D-Wave Quantum Inc (Symbol: QBTS) and hesitant about the current market price of $6.07 per share may find selling puts to be a viable strategy. One noteworthy option is the January 2027 put at the $3 strike, which currently has a bid of 90 cents. By collecting that bid as a premium, investors could secure a 30% return based on the $3 commitment, translating to a 17.3% annualized rate of return—what we refer to as the YieldBoost at Stock Options Channel.

It is important to note that selling a put does not provide exposure to QBTS’s upside potential as owning shares would. The put seller will only acquire shares if the contract is exercised. For the option holder to exercise at the $3 strike, it must yield a better outcome than the current market price. If D-Wave Quantum’s shares experience a drop of 50.2%, leading to the contract’s exercise, the effective cost basis for the shares would be $2.10 each after accounting for the 90-cent premium collected. Thus, without significant price decline, the advantage for the put seller lies solely in the premium collected, representing the anticipated 17.3% annualized return.

Below is a chart illustrating the trailing twelve-month trading history of D-Wave Quantum Inc., highlighting the $3 strike position within that context:

The combination of the chart above, along with D-Wave Quantum Inc.’s historical volatility, can inform investors on whether selling the January 2027 put at the $3 strike for the projected 17.3% annualized return is a sound decision considering the associated risks. Our calculations show that the twelve-month volatility for D-Wave Quantum Inc. is 153%, based on the last 249 trading day closing values and the current price of $6.07. For additional put option strategies across various expiration dates, please visit the QBTS Stock Options page on StockOptionsChannel.com.

In mid-afternoon trading on Monday, S&P 500 components recorded a put volume of 961,483 contracts with call volume at 1.13 million, resulting in a put:call ratio of 0.85 for the day. This ratio is notably elevated compared to the long-term median ratio of 0.65. In essence, there are significantly more put buyers in today’s options trading than typically expected relative to call buyers.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.