Quantum computing developer Rigetti Computing (RGTI) is up a massive 550% over the past year amid strong investor interest. One trader is betting on a pullback in the second half of the year.
That’s based on the January 2026 $9 puts. With 255 days until expiration, 7,304 contracts traded compared to a prior open interest of 172, for a 42-fold rise in volume on the trade. The buyer of the puts paid $2.60 to make the bearish bet.
Rigetti Computing shares recently traded for about $10.50, so shares would need to decline by about $1.50, or nearly 15%, for the options to move in-the-money.
The stock has generally been declining since peaking at $21.42 at the start of 2025, but shares have been ticking higher in recent weeks.
Although quantum computing companies have been discussing potential breakthroughs, the technology hasn’t quite reached that status. Rigetti is an early-stage player that is far from turning a profit as it works to develop this technology.
Action to take: Rigetti shares may have some more downside in the months ahead, and potential investors may want to hold off, or buy a small position now and scale in more over time.
For traders, the January 2026 $9 puts are well-positioned for further weakness in shares. Given the volatility in Rigetii shares, traders should look to take quick profits and get in later to avoid being caught up in one of the stock’s periodic bounces higher.
Disclosure: The author of this article has no position in the company mentioned here, but may further trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.