QC New Trades - 5/30/23 - IBM and QTUM

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In addition to RGTI, there are two other QC trade candidates. Both would be considered more conservative than RGTI. And I am not entering either of them right now - just like I am not entering RGTI right now. But I did want to put these out there because when I do pull the trigger I might not have time to post.

IBM - moderate risk.

IBM is boring. It reminds me a lot of MSFT and AAPL when they were considered boring and old. But, IBM is the leader in full ecosystem QC. Frankly, they have the hardware and they have the B2B clientele, some of which are already using their QC platform. The platform itself is cloud based where businesses can access the power of their QC on the net. Their hardware is a leader in terms of Qbit processing speed. It can process at +1100Qbits per second and plan to have a +4000 Qbit ready in 2025 and 1million Qbit in 2030.

The key for me is that unlike other smaller QC companies, IBM has the cash to do this type of development. Plus, since the 90's, IBM has focused on mainframes so their sales channel is already set. Google is working on QC but their sales channels are software. NVDA, AMD make the chips but they also don't have the mature sales channels.

The chart:

Until the Debt Deal is done, I am doing nothing. Even after the debt deal is done I will be looking at a half position since as you know, I believe strongly that the potential for a spike down in the overall market is high.

OPTION:

Leaps to start. 2024 and 2025.

2024 175 Calls currently at .77

2025 190 Calls currently at .90 (mid price)

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QTUM - Defiance Quant ETF - moderate risk, lower than IBM

If I were opposed to single company concentration, I would be looking at this ETF. And I still might because it offers broad exposure to QC. From chips to network it seeks to have an inclusive representation of the QC space. Some of their largest positions are of companies that did not make my cut but it's easier to take a shot at those when they are not the single egg in the basket.

The chart:

Again, I am not entering this trade at the moment. I will wait for the pullback.

OPTION:

Longest LEAP are the Jan 24s.

The options are very thinly traded so entering will be tricky. Super wide spreads.

Currently the Jan24 55Calls are .70 x 2.95 and I think I could get for 1.90ish. Those are the ones I will be watching

MY PLAN:

I want better pricing which will only occur if we get a pullback.

I AM NOT ENTERING THESE TRADEs YET. I am watching.

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Research Reports:

QTUM-InvestmentCase

.pdf

Download PDF • 6.28MB

QTUM-FactSheet

.pdf

Download PDF • 180KB

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This is not investment advice. Nothing in this document should be construed as investment advice. The opinions offered are the Author's only. This document is for entertainment purposes only. Always consult with your advisors before investing any money. Readers of this document agree that they will not use this information to make investment decisions.

DO ATTEMPT TO FOLLOW THE AUTHOR'S INVESTMENT, IF ANY. THE AUTHOR MAY OR MAY NOT INVEST IN ANY COMPANIES LISTED IN THIS DOCUMENT. THE AUTHOR IS NOT A REGISTERED INVESTMENT ADVISOR AND DOES NOT HOLD THEMSELVES OUT AS ONE. THE AUTHOR IS NOT A REGISTERED REPRESENTATIVE AND DOES NOT HOLD THEMSELVES OUT AS ONE.

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