# The Upcoming Wild Ride for Quantum Computing Inc. (QUBT) and My Plan to Get a Ticket
[DetectiveDoot Bailing Out of QUBT During the Pinnacle of Enjoyment, Slightly Before Disaster](https://preview.redd.it/dcdjc7283cre1.png?width=1024&format=png&auto=webp&s=7af766e9ceac82d39215a2941952bb25eb383d1a)
#
**TLDR: This is an extremely high-risk play. I'm taking a degenerate, short-term bullish position on $QUBT and long-term short position on quantum computing stocks as a whole, with the anticipation of extremely volatile $QUBT price action soon.**
Current Positions:
\- Short: mostly IONQ, with almost entirely put debit spreads
\- Degenerate short-term OTM calls: QUBT, rolling weekly
# Quantum Companies are Bad
I have returned after a couple years away to bring good tidings and some DD about a play I believe will have some extreme volatility in the coming two weeks. Over the past six or so months, quantum computing stocks have had a wild ride. Up 1200% down, [pimp slapped hard](https://qz.com/quantum-computing-stocks-nvidia-ceo-rigetti-dwave-ionq-1851771538), recovered some and currently teetering towards inevitable doom.
That's right. They are all doomed. Overvalued, overhyped and **running out of steam**. You don't need me to tell you that these companies are trash. Many big names have been trashing the industry, [Martin Shkreli](https://x.com/MartinShkreli/status/1895480382629556486) and [Kerrisdale Capital](https://www.kerrisdalecap.com/investments/ionq/) being two of the most notable.
# Why Do I Care about QUBT
While all of the quantum companies have little to show for their insane valuations, QUBT is a real gem. Despite missing last quarter's disappointing earnings of -$0.47/share (est. -$0.05) they maintain a respectable market cap of \~$1.1B while having nothing to sell.
***IF YOU READ ANYTHING ON THIS POST, READ THIS PARAGRAPH.*** Per the [S-8 filed 3/21/2025](https://www.sec.gov/Archives/edgar/data/1758009/000101376225001115/ea0235205-s8_quantum.htm), insiders for $QUBT were recently approved to sell their shares. **Only two insiders stated immediate intent to sell stock by this coming Monday (3/31/2025).** As of 3/27/2025 only one insider has sold, with the Chairman of the Board[ Yuping Huang selling 200,000 out of his 27-million currently owned shares two days ago](https://www.sec.gov/Archives/edgar/data/1758009/000196858225000237/xsl144X01/primary_doc.xml). The other insider expressing intent is a director who only owns 207,000 shares. **Assuming the Chairman is done selling, insider dilution shouldn't be a near-term worry, but is always possible.** Currently, [multiple firms are suing the shit](https://www.google.com/search?sca_esv=8f5ad3653710c57c&rlz=1C1VDKB_enUS1129US1129&sxsrf=AHTn8zpwApo4bS8d-5dXiXB8EM1N_8SZgg:1743160180622&q=qubt+lawsuit&tbm=nws&source=lnms&fbs=ABzOT_CWdhQLP1FcmU5B0fn3xuWpmDtIGL1r84kuKz6yAcD_igefx-eKq1gCPHF3zhthFoneNn6lL83lY3KLybUMxCNDhMUtbCQQO9t_eGxoOP_s3rR9imLItfH1uBSfE1eodVtu3j9NNltXXuqTU0fP37mjBusR7Pi0GSAtMbdArRUTLOsC4dN4POVlfGKFb_2PiWfOtFnP-rmmP8j0Odsy8bbuGSebXg&sa=X&sqi=2&ved=2ahUKEwi74uja0ayMAxUCCnkGHfJkOOIQ0pQJegQIIRAB&biw=1718&bih=1304&dpr=1) out of this company. Any insider selling this close to the unlock would just accelerate the dumpster fire.
As you can imagine, QUBT is being beaten down to oblivion. However, after scratching the surface it becomes apparent that there is ever mounting stress on QUBT short sellers. Below, I have a little spreadsheet w/ some relevant short data and some recent options flows depicting deep ITM call buying, which can be highly indicative of low liquidity.
|Short Interest|19%|as of 3/11/2025|
|:-|:-|:-|
|**Cost-to-Borrow (Schwab)**|**250%+ (when available)**|**3/27/2025**|
|**Reg SHO Threshold**|**Yes**|**???-3/27/2025 (can't download history)**|
https://preview.redd.it/wx1o8ur5hcre1.jpg?width=828&format=pjpg&auto=webp&s=1c21e669f6e3413afe88f2db2182c5f8752315c6
https://preview.redd.it/fhjgou46hcre1.jpg?width=828&format=pjpg&auto=webp&s=6386ef702cc12b23199bba8eee25836f6143f675
# Catalysts
Positive News - LOL, Highly unlikely
Retail Enthusiasm - Why I'm here
Shark Entry - Would be sick but also unlikely
# My Plan
This stock is equivalent to the rides in Roller Coaster Tycoon that are designed to the idiotic launch patrons into the air, to their violent and fiery demise. My plan is to get a ticket and parachute out immediately when/if volatility climaxes. I'm being extremely risky here.
# Positions
Not posting my current $QUBT position as it expires today and I don't want some idiots to copy it. I am rolling later on today and I will send it to mods when I do. Posted IONQ short though, which I will roll to may OPEX next week
https://preview.redd.it/88yrs90z1fre1.png?width=316&format=png&auto=webp&s=99925337269c7fd2015f0b812b7293feeec38cad
# Other positions
Short: $SBUX
Long: $COOP, $RYCEY, $OKLO covered-calls (LEAPS)
