Quantum computing stocks saw sharp declines last week after Huang’s comments, with IonQ Inc. falling 32%, Quantum Computing Inc. dropping 49%, and Rigetti Computing Inc. tumbling 53%.

Meta Platforms Inc. CEO Mark Zuckerberg agreed with Nvidia Corp. CEO Jensen Huang‘s cautious outlook on quantum computing, saying that the technology remains years away from practical implementation.

“I’m not really an expert on quantum computing, but my understanding is that it’s still quite a ways off from being a truly practical paradigm,” Zuckerberg said.

His comments follow Huang’s recent statement at Nvidia’s CES 2025 that practical quantum computers could be 15 to 30 years away, which triggered significant market turbulence.

With quantum-computing shares experiencing a sharp decline, here are some specific strategies taking options related to Quantum Computing as an example:

1. Covered Call (If You Own the Stock and Expect Stability or a Mild Rebound)

• Outlook: Neutral to moderately bullish.

• Setup: Sell call options on the stock you own.

• Purpose: Generate income from the premium while holding the stock, with the risk of selling the stock if it rises above the strike price.

• Example: If you own shares at $8.5, sell $9 call options.

  $QUBT 20250207 9.0 CALL$

2. Protective Put (To Hedge Existing Long Positions)

• Outlook: Bearish or uncertain.

• Setup: Buy put options to hedge against potential losses in your existing long stock position.

• Purpose: Provides downside protection for a long position while retaining upside potential.

• Example: Buy a $8 put if the stock is at $8.5.

  $QUBT 20250207 8.0 PUT$

3. Bear Put Spread

• Description: Implementing a bear put spread by buying a put option at a higher strike price while simultaneously selling a put option at a lower strike price limits losses if the stock continues to decrease.

• Example: Buy a put option with a $8.5 strike price and sell a put option with a $6.5 strike price. This allows you to profit from the decline at a reduced cost.

  $QUBT Vertical 250207 6.5P/8.5P$ 

  Source: Tiger Trade App