D-Wave Quantum Plummets 9.2% Amid Insider Sales and Quantum Sector Volatility – What’s Next?

Summary
• D-Wave Quantum (QBTS) tumbles 9.2% intraday to $24.985, breaking below its 20-day SMA
• Analysts upgrade price targets (Canaccord to $41, Evercore to $44) amid quantum computing hype
• CEO Alan Baratz and CFO John Markovich sell millions in shares, deepening bearish sentiment
• Sector peers like IonQ (-7.3%) and Rigetti face similar volatility as quantum computing hype cycles intensify

QBTS’s sharp decline on December 26, 2025, reflects a confluence of insider selling, elevated short interest (12.12% of float), and sector-wide skepticism. Despite a $33.67 consensus price target and 14 'Buy' ratings, the stock’s 52-week low of $3.74 looms as a psychological barrier. With quantum computing stocks prone to boom-bust cycles, investors must weigh near-term risks against long-term potential.

Insider Sales and Short-Squeeze Fears Fuel QBTS’s Freefall
QBTS’s 9.2% intraday drop stems from a perfect storm of insider selling, short-covering pressure, and sector-wide profit-taking. CEO Alan Baratz and CFO John Markovich sold 1.01M shares worth $66M in the past 90 days, signaling internal caution. Short interest of 12.12%—a 1.3-day cover ratio—suggests aggressive bearish bets, while the stock’s -20.77 P/E ratio highlights its unprofitable profile. Meanwhile, sector-wide quantum computing stocks face profit-taking after a 2025 boom-bust cycle, with Alphabet’s $44 price target (Evercore) underscoring divergent valuations.

Quantum Computing Sector Volatility: QBTS vs. IONQ and RGTI
The quantum computing sector remains hyper-volatile, with D-Wave’s 9.2% decline mirroring broader trends. IonQ (IONQ) fell 7.3% on the same day, while Rigetti Computing (RGTI) faces similar pressure. Alphabet (GOOGL), a sector leader with a $44 price target, remains insulated due to its diversified revenue streams. QBTS’s reliance on quantum R&D and lack of profitability make it more susceptible to sentiment shifts compared to legacy tech players.

Options Playbook: Capitalizing on QBTS’s Volatility and Sector Catalysts
• MACD: 0.41 (bullish divergence), Signal Line: -0.099 (bearish), Histogram: 0.51 (momentum waning)
• RSI: 47.74 (neutral), Bollinger Bands: $20.53–$31.58 (oversold territory)
• 200D MA: $18.89 (far below current price), 30D MA: $25.01 (key support)

QBTS’s technicals suggest a short-term bounce from oversold levels but long-term bearish bias. The stock is testing its 200D MA and 52-week low, with $24.765 (intraday low) as critical support. A break below $20.53 (lower Bollinger Band) could trigger panic selling. For options, focus on high-leverage puts with moderate deltas and high gamma/theta for short-term volatility plays.

Top Option 1: QBTS20260102P23
• Put Option, Strike: $23, Expiry: 2026-01-02, IV: 75.52%, Leverage: 67.59%, Delta: -0.208, Theta: -0.0213, Gamma: 0.1025, Turnover: 16,963
• IV (high volatility), Leverage (amplifies downside), Gamma (sensitive to price swings), Theta (moderate time decay)
• This put offers 67.59% leverage on a 5% downside scenario (ST = $23.74), yielding a $0.74 payoff. High gamma ensures responsiveness to price swings, while elevated IV reflects market pessimism.

Top Option 2: QBTS20260102P23.5
• Put Option, Strike: $23.5, Expiry: 2026-01-02, IV: 76.91%, Leverage: 50.02%, Delta: -0.270, Theta: -0.0212, Gamma: 0.1162, Turnover: 16,055
• IV (high volatility), Leverage (moderate downside amplification), Gamma (high sensitivity), Theta (moderate decay)
• A 5% downside scenario (ST = $23.74) yields a $0.24 payoff. The 50.02% leverage and 0.1162 gamma make this ideal for aggressive short-term bearish bets.

Action: Aggressive bears should prioritize QBTS20260102P23 for its high leverage and gamma. If $24.765 support breaks, consider QBTS20260102P23.5 for deeper downside exposure.

Backtest D-Wave Quantum Stock Performance
The backtest of QBTS's performance after a -9% intraday plunge from 2022 to now shows favorable results, with win rates and returns indicating the ETF's resilience and potential for positive gains following such events.

QBTS at Inflection Point: Watch $24.765 Support and Sector Catalysts
QBTS’s 9.2% drop has brought it perilously close to its 52-week low of $3.74, with $24.765 as immediate support. A break below $20.53 (lower Bollinger Band) could trigger a liquidity crisis, given its 7.5% turnover rate. Analysts remain split, with 14 'Buys' but one 'Sell' (Wall Street Zen). Sector leaders like IonQ (-7.3%) highlight the sector’s fragility. Investors should monitor the Qubits conference for tech updates and Alphabet’s quantum progress. Aggressive bulls may consider QBTS20260102C24 into a bounce above $27.50 (intraday high).