IonQ (IONQ) is a quantum computing company whose stock has been a favorite among speculative buyers and high-volatility traders, thanks to its high beta (3.30 over the last 60 months) and news-driven price action. It's not uncommon to see the stock swinging by double-digit percentages around news, earnings, partnership announcements, or sector sentiment shifts. Domino's Pizza Stock Is Dirt Cheap, With 30% Potential Upside - What's the Best Play?
Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. IonQ, the volatile quantum stock, is now sitting at 0% IV rank. That means options on IONQ are priced much cheaper than they have been historically, creating an opportunity to go long.
But which option strategy should you use? Well, based on Barchart Technical Opinion and Trendseeker, the outlook is grim, making long puts a viable choice. Today, I'll break down the strategy and help you find a trade that matches the trend.
A long put is one of the simplest bearish options trades. It's a single-legged trade that makes money when the stock falls. The trade mechanics are simple.
You buy a put that gives you the right, but not the obligation, to sell 100 shares of the underlying asset at a certain price (strike price) on or before a specific date (expiration date). You pay a premium for the put, which is typically expressed on a per-share basis. The only money you stand to lose on a long put is the premium you paid at the start.
For a volatile name like IONQ, that defined, limited risk profile is a big part of the appeal versus betting against the stock directly. But before I find long put trades on IONQ, I need to explain why that 0% IV rank matters so much to the trade thesis. Implied volatility (IV) is one of the main factors that move option premiums.
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