QBTS Covered Call Strategy
QBTS (D-Wave Quantum Inc.), in the Technology sector, (Computer Hardware industry), listed on NASDAQ.
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 $6.09B, a beta of 2.14 versus the broader market, a 52-week range of 12.75-46.75, average daily share volume of 26.3M, a public-listing history dating back to 2020, approximately 385 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 2.14 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 covered call on QBTS?
A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income.
QBTS snapshot
As of September 29, 2026, spot at $16.41, ATM IV 70.94%, IV rank 2.98%, expected move 20.34%. The covered call on QBTS below is built from the September 29, 2026 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 covered call structure on QBTS specifically: QBTS IV at 70.94% is on the cheap side of its 1-year range, which means a premium-selling QBTS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 20.34% (roughly $3.34 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 $16.41 per share and to the trader's directional view on QBTS stock.
QBTS covered call setup
The QBTS covered call below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With QBTS at $16.41 on that close, the first option leg uses a $17.00 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 | $16.41 | long |
| Sell 1 | Call | $17.00 | $1.17 |
QBTS covered call risk and reward
- Net Premium / Debit
- -$1,524.00
- Max Profit (per contract)
- $176.00
- Max Loss (per contract)
- -$1,523.00
- Breakeven(s)
- $15.24
- Risk / Reward Ratio
- 0.116
Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium.
QBTS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | -$1,523.00 |
| $3.64 | -77.8% | -$1,160.28 |
| $7.26 | -55.7% | -$797.55 |
| $10.89 | -33.6% | -$434.83 |
| $14.52 | -11.5% | -$72.11 |
| $18.15 | +10.6% | +$176.00 |
| $21.77 | +32.7% | +$176.00 |
| $25.40 | +54.8% | +$176.00 |
| $29.03 | +76.9% | +$176.00 |
| $32.66 | +99.0% | +$176.00 |
When traders use covered call on QBTS
Covered calls on QBTS are an income strategy run on existing QBTS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
QBTS thesis for this covered call
The market-implied 1-standard-deviation range for QBTS extends from approximately $13.07 on the downside to $19.75 on the upside. A QBTS covered call collects premium on an existing long QBTS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether QBTS will breach that level within the expiration window. Current QBTS IV rank near 2.98% 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 70.94%. 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 covered call positions are structurally neutral to slightly bullish; 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. Short-premium structures like a covered call on QBTS carry tail risk when realized volatility exceeds the implied move; review historical QBTS earnings reactions and macro stress periods before sizing. Always rebuild the position from current QBTS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on QBTS?
- A covered call on QBTS is the covered call strategy applied to QBTS (stock). The strategy is structurally neutral to slightly bullish: A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income. With QBTS stock at $16.41 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed QBTS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are QBTS covered call max profit and max loss calculated?
- Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the QBTS covered call priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 70.94%), the computed maximum profit is $176.00 per contract and the computed maximum loss is -$1,523.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QBTS covered call?
- The breakeven for the QBTS covered call priced on this page is roughly $15.24 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The QBTS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a covered call on QBTS?
- Covered calls on QBTS are an income strategy run on existing QBTS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
- How does current QBTS implied volatility affect this covered call?
- QBTS ATM IV is at 70.94% with IV rank near 2.98%, 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.