How are QBTS collar max profit and max loss calculated?

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the QBTS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 98.89%), the computed maximum profit is $113.00 per contract and the computed maximum loss is -$87.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a QBTS collar?

The breakeven for the QBTS collar priced on this page is roughly $23.87 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current QBTS market-implied 1-standard-deviation expected move is approximately 28.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current QBTS implied volatility affect this collar?

QBTS ATM IV is at 98.89% with IV rank near 29.12%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

QBTS Collar Strategy

QBTS (D-Wave Quantum Inc.), in the Technology sector, (Computer Hardware industry), listed on NYSE.

Operating globally, D-Wave Quantum Inc. specializes in developing and supplying quantum computing systems, software, and related services. Their offerings include Advantage, a pioneering fifth-generation quantum computer, and Launch, an onboarding service designed for quantum computing adoption. The company also provides Ocean, a comprehensive suite of open-source programming tools. Furthermore, Leap is a cloud-based service that enables real-time interaction with a live quantum computer. This service further provides access to Advantage, along with hybrid problem-solving tools, the Ocean Software Development Kit, live code samples, demonstrations, learning resources, and a vibrant developer community. Additionally, D-Wave provides a dedicated "D-Wave Launch" professional service, guiding enterprises from initial problem identification through to production deployment of quantum applications.

QBTS (D-Wave Quantum Inc.) trades in the Technology sector, specifically Computer Hardware, with a market capitalization of approximately $8.36B, a beta of 2.06 versus the broader market, a 52-week range of 12.75-46.75, average daily share volume of 35.0M, a public-listing history dating back to 2020, approximately 216 full-time employees. These structural characteristics shape how QBTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.06 indicates QBTS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a collar on QBTS?

A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.

Current QBTS snapshot

As of June 30, 2026, spot at $24.02, ATM IV 98.89%, IV rank 29.12%, expected move 28.35%. The collar on QBTS below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 31-day expiry.

Why this collar structure on QBTS specifically: IV regime affects collar pricing on both sides; compressed QBTS IV at 98.89% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 28.35% (roughly $6.81 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated QBTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on QBTS should anchor to the underlying notional of $24.02 per share and to the trader's directional view on QBTS stock.

QBTS collar setup

The QBTS collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With QBTS near $24.02, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QBTS chain at a 31-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 QBTS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$24.02	long
Sell 1	Call	$25.00	$2.35
Buy 1	Put	$23.00	$2.20

QBTS collar risk and reward

Net Premium / Debit: -$2,387.00
Max Profit (per contract): $113.00
Max Loss (per contract): -$87.00
Breakeven(s): $23.87
Risk / Reward Ratio: 1.299

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.

QBTS collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on QBTS. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$87.00
$5.32	-77.9%	-$87.00
$10.63	-55.7%	-$87.00
$15.94	-33.6%	-$87.00
$21.25	-11.5%	-$87.00
$26.56	+10.6%	+$113.00
$31.87	+32.7%	+$113.00
$37.18	+54.8%	+$113.00
$42.49	+76.9%	+$113.00
$47.80	+99.0%	+$113.00

When traders use collar on QBTS

Collars on QBTS hedge an existing long QBTS stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.

QBTS thesis for this collar

The market-implied 1-standard-deviation range for QBTS extends from approximately $17.21 on the downside to $30.83 on the upside. A QBTS collar hedges an existing long QBTS position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current QBTS IV rank near 29.12% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on QBTS at 98.89%. As a Technology name, QBTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QBTS-specific events.

QBTS collar positions are structurally neutral (protective); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. QBTS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QBTS alongside the broader basket even when QBTS-specific fundamentals are unchanged. Always rebuild the position from current QBTS chain quotes before placing a trade.

Frequently asked questions

What is a collar on QBTS?: A collar on QBTS is the collar strategy applied to QBTS (stock). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With QBTS stock trading near $24.02, the strikes shown on this page are snapped to the nearest listed QBTS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are QBTS collar max profit and max loss calculated?: Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the QBTS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 98.89%), the computed maximum profit is $113.00 per contract and the computed maximum loss is -$87.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a QBTS collar?: The breakeven for the QBTS collar priced on this page is roughly $23.87 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current QBTS market-implied 1-standard-deviation expected move is approximately 28.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on QBTS?: Collars on QBTS hedge an existing long QBTS stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
How does current QBTS implied volatility affect this collar?: QBTS ATM IV is at 98.89% with IV rank near 29.12%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.