How are QBTS strangle max profit and max loss calculated?

Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the QBTS strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 98.89%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$455.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a QBTS strangle?

The breakeven for the QBTS strangle priced on this page is roughly $18.45 and $29.55 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 strangle?

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 Strangle 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 strangle on QBTS?

A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money.

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 strangle 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 strangle structure on QBTS specifically: QBTS IV at 98.89% is on the cheap side of its 1-year range, which favors premium-buying structures like a QBTS strangle, 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 strangle setup

The QBTS strangle 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 1	Call	$25.00	$2.35
Buy 1	Put	$23.00	$2.20

QBTS strangle risk and reward

Net Premium / Debit: -$455.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$455.00
Breakeven(s): $18.45, $29.55
Risk / Reward Ratio: Unbounded

Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit.

QBTS strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle 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%	+$1,844.00
$5.32	-77.9%	+$1,313.02
$10.63	-55.7%	+$782.03
$15.94	-33.6%	+$251.05
$21.25	-11.5%	-$279.94
$26.56	+10.6%	-$299.08
$31.87	+32.7%	+$231.91
$37.18	+54.8%	+$762.89
$42.49	+76.9%	+$1,293.88
$47.80	+99.0%	+$1,824.86

When traders use strangle on QBTS

Strangles on QBTS are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the QBTS chain.

QBTS thesis for this strangle

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 long strangle is the OTM cousin of the straddle: lower up-front cost but the underlying has to travel further past either OTM strike before the position turns profitable at expiration. 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 strangle positions are structurally neutral / high-volatility (long premium, OTM); 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 strangle on QBTS?: A strangle on QBTS is the strangle strategy applied to QBTS (stock). The strategy is structurally neutral / high-volatility (long premium, OTM): A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money. 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 strangle max profit and max loss calculated?: Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the QBTS strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 98.89%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$455.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a QBTS strangle?: The breakeven for the QBTS strangle priced on this page is roughly $18.45 and $29.55 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 strangle on QBTS?: Strangles on QBTS are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the QBTS chain.
How does current QBTS implied volatility affect this strangle?: 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.