QUBT is a typical "story stock for options"—the IV is ridiculously expensive, but the structure gives you a way out.

$Quantum Computing(QUBT.US) has risen from the mid-$6 range to $9-$10 over the past two weeks. The combination of the Dirac-3 quantum machine accessing the Quantum Corridor commercial network and Northland initiating an Outperform rating with a $20 price target has pushed sentiment to extremes. A Put/Call ratio of 0.38 means there is 1 Put for every 3 Calls—this is typical meme/theme stock option sentiment.

But story is one thing, structure is another.

What does an IV of 168% mean?

Even volatile stocks like NVDA have an IV around 30-50. For QUBT, a company with TTM revenue of $682k, an IV of 168% + an IV Percentile of 85P means those buying Calls now are paying the "most expensive premium".

At this IV level, buying a naked ATM Call requires almost a 20% stock price increase just to break even—in other words, you lose even if the stock price stays flat or rises slightly.

But Spreads open a window

Buy the $10 Call / Sell the $15 Call (expiring 6/18, 56 days).

Net premium approximately $175
Maximum profit $325 ($15 - $10 = $5 spread - cost)
Break-even point $11.75

This structure addresses three things:

First, the short leg ($15 Call) hedges vega. The IV sensitivity of a spread is only 1/3 of a naked Call, so a drop in IV from 168 to 100 has limited impact on you.

Second, the $15 cap doesn't conflict with Northland's $20 PT—the market's belief cap is at $20, and it's reasonable for the stock to hit the $15 cap in the short-to-medium term, so you won't feel like you "should have made more."

Third, the 56-day time window is sufficient to digest multiple catalysts—further Dirac-3 deployments, NVIDIA quantum ecosystem updates, the next Northland report—any of which could push QUBT past $12.

Key risk: QUBT's paper-thin fundamentals

Quarterly revenue $198k (close to zero)
TTM revenue $682k
Cash $737M, but burn rate is unknown
Market cap/revenue ratio is completely distorted

This is a pure theme trade, not a fundamentals trade. If the AI quantum narrative fizzles out, or if there are no new catalysts within 3 months after NVDA's GTC, it's easier for QUBT to return to the $5 range than to surge to $20. Therefore, I'm only allocating 1-2% of the total single-stock position to this Spread trade, without leverage.

Not suitable for:

Those afraid of missing the main rally due to a Gamma squeeze—the spread cap will piss you off
Those who like to bet on odds with naked ATM Calls—an IV of 168% will only teach you how to lose money
Those wanting to hold the stock long-term—fundamentals can't support it, but the 56-day option window can capture the theme's climax