Rigetti Computing Stock Surges to All-Time High; Options Market Buzzing

Stocks in the tech sector, particularly those focused on cutting-edge technologies like quantum computing, have been on a tear recently. Rigetti Computing (NASDAQ: RGTI), a leader in full-stack quantum computing, is no exception. The company's stock has soared to an all-time high, driven by a combination of strong fundamentals, positive analyst sentiment, and increased institutional interest. But it's the options market that's really buzzing, with a significant increase in options trading volume and open interest.

Rigetti Computing's stock price has been on a remarkable run, up over 237% in the past year. The company's proprietary quantum-classical infrastructure and multi-chip quantum processor have positioned it as a key player in the growing quantum computing landscape. This innovative technology, coupled with its strategic positioning within the tech sector, has driven investor confidence and contributed to the stock's impressive performance.

Analysts have taken note of Rigetti Computing's potential, with a majority of recent ratings being bullish. In the last month, two experts released ratings on RGTI with an average target price of $8.0. While this is lower than the current stock price, it still indicates a positive outlook on the company's future prospects. Additionally, analysts have established 12-month price targets, indicating an average target of $4.8, along with a high estimate of $12.00 and a low estimate of $2.00. This wide range of opinions reflects the uncertainty and potential risks associated with the company's growth trajectory but also highlights the significant upside potential that investors see in Rigetti Computing.

Institutional investors have played a significant role in Rigetti Computing's stock price surge, with increased ownership and buying activity contributing to the positive momentum. As of the latest data, 35.38% of Rigetti Computing's stock is currently owned by institutional investors. During the 2nd quarter, several institutional investors initiated or increased their positions in Rigetti Computing, with notable purchases from SG Americas Securities LLC, Comprehensive Financial Consultants Institutional Inc., Cetera Advisors LLC, Caprock Group LLC, and Arete Wealth Advisors LLC. This increased institutional interest has likely contributed to the stock's impressive run.

However, it's the options market that's really generating buzz around Rigetti Computing. Benzinga's options scanner spotted 17 options trades for RGTI today, which is not a typical pattern. The sentiment among these major traders is split, with 23% bullish and 70% bearish. Among all the options identified, there was one put, amounting to $27,700, and 16 calls, totaling $1,630,393. This significant options activity suggests that major traders are closely watching Rigetti Computing and positioning themselves accordingly.

Taking into account the volume and open interest on these contracts, it appears that whales have been targeting a price range from $10.0 to $20.0 for Rigetti Computing over the last 3 months. This price range could indicate the potential support and resistance levels for the stock in the near future.

Looking at the volume and open interest data for Rigetti Computing's options over the last 30 days, we can observe a significant amount of activity in the $10.0 to $20.0 strike price range. This activity includes both calls and puts, with a majority of the trades being bearish. For example, on January 31, 2025, there was a call sweep with a bearish sentiment, with an ask price of $3.4, bid price of $2.4, and a strike price of $12.50. This trade had a total trade price of $540,500, an open interest of 416, and a volume of 2,300. This significant trade suggests that a large investor expects the stock price to fall below $12.50.

The put-call ratio for Rigetti Computing is currently 0.0625, indicating a bullish sentiment among major traders. This low put-call ratio suggests that more traders are inclined to buy call options than put options, anticipating an increase in the stock price. However, the bearish sentiment expressed by the majority of options trades, along with the price targets identified by these investors, suggests that there is still some uncertainty and potential risk associated with the company's future performance.

In conclusion, Rigetti Computing's stock price has soared to an all-time high, driven by a combination of strong fundamentals, positive analyst sentiment, and increased institutional interest. The options market is buzzing with activity, with a significant increase in options trading volume and open interest. While the sentiment among major traders is split, the majority of options trades are bearish, suggesting that investors are positioning themselves for a potential price correction. However, the low put-call ratio and the bullish sentiment expressed by some analysts indicate that there is still significant upside potential for Rigetti Computing. As always, investors should conduct their own research and consider their risk tolerance before making any investment decisions.