"Invest in Rigetti Computing at $8 and Achieve a 23.2% Return with Options"
Put Selling and Upside Potential: Selling a put option does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, which is contingent on the stock price falling significantly.
Counterparty Risk and Myths: The article addresses common myths about options, including the counterparty risk associated with selling puts, emphasizing that the seller's primary benefit is the premium collected unless the stock price drops substantially.
Volatility and Trading History: Rigetti Computing Inc's historical volatility is noted at 178%, and the article suggests using this volatility along with fundamental analysis to evaluate the attractiveness of selling a put option at the $8 strike price.
Investment Considerations: The potential reward of a 10.6% annualized return from selling the put option is discussed, highlighting the importance of assessing risks against the expected returns in the context of the stock's trading history.
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- Earnings Anticipation: Investors are eagerly awaiting Rigetti Computing's upcoming fourth-quarter earnings report, expected to show a loss of 4 cents per share on revenue of approximately $2.46 million, with market participants closely monitoring for any upside surprises or positive guidance following last quarter's modest EPS beat that failed to prevent a stock decline.
- Strong Financial Position: Despite reporting an operating loss of $20.5 million and a non-GAAP net loss of $10.7 million (3 cents per share) in the third quarter, Rigetti ended the period with a robust cash position of $558.9 million in cash, equivalents, and investments, indicating strong financial resilience that supports long-term growth.
- Bullish Analyst Sentiment: Rigetti has received a series of positive ratings from analysts, including an upgrade from B. Riley Securities from Neutral to Buy with a price target of $35.00, and Wedbush raising its target from $35.00 to $40.00, reflecting growing confidence in the company's future performance.
- Stock Price Recovery: As of Wednesday, Rigetti shares rose by 3.30% to $17.52, driven by investor optimism surrounding the upcoming earnings report and favorable analyst outlooks, showcasing renewed confidence in the company's growth trajectory.
- Okta Earnings Beat: Okta reported adjusted earnings of $0.90 per share and revenue of $761 million for Q4, surpassing analysts' expectations of $0.85 and $749 million, leading to a 2% increase in stock price, indicating strong performance in the identity security sector.
- Broadcom Strong Results: Broadcom's fiscal Q1 revenue grew 29% year-over-year, with adjusted earnings per share of $2.05 and revenue of $19.31 billion, both exceeding analyst expectations, and the revenue guidance for the upcoming quarter also surpassed estimates, highlighting the company's growth potential in the semiconductor market.
- StubHub Revenue Miss: StubHub's Q4 revenue of $449 million fell short of the consensus estimate of $484 million, although adjusted EBITDA was $62.7 million, roughly in line with expectations, resulting in a 6% drop in stock price, reflecting pressure in the secondary ticketing market.
- Veeva Systems Strong Performance: Veeva Systems reported Q4 earnings of $2.06 per share and revenue of $836 million, both exceeding analyst estimates, leading to a 9% jump in stock price in after-hours trading, indicating robust demand for its cloud solutions.
- Earnings Miss Expected: Rigetti Computing is anticipated to miss Q4 earnings estimates, leading to a significant disconnect with Wall Street expectations, which could pressure the stock price and undermine investor confidence.
- Rating Upgrade: Despite the poor performance, Rigetti's stock rating has been upgraded, indicating a divergence in analysts' views regarding its future potential, although current results are disappointing.
- Market Reaction Tepid: The stock price of Rigetti Computing has slid ahead of the earnings report, reflecting investor concerns about future growth prospects, which may impact the company's competitive position in the quantum computing sector.
- Comparative Industry Analysis: While Rigetti Computing holds potential in quantum computing, market analysis suggests there are more attractive alternative investments, which could lead to capital outflows and affect its market share.
- Earnings Report Disappointment: Rigetti Computing's fourth-quarter earnings showed a loss of three cents per share, aligning with expectations, but revenue of $1.87 million fell short of the $2.34 million consensus, indicating challenges in revenue growth.
- Cash Reserves Status: As of December 31, 2025, Rigetti reported cash, cash equivalents, and available-for-sale investments totaling $589.8 million, suggesting a relatively stable financial position, yet the revenue miss could impact future investment decisions.
- Growing Market Demand: CEO Subodh Kulkarni noted that demand for on-premises quantum systems from government and research institutions continues to rise, indicating potential market opportunities in quantum computing despite current financial setbacks.
- Stock Price Fluctuation: Rigetti's stock dipped 3.21% to $17.19 in extended trading on Wednesday, reflecting investor concerns over the earnings report, which may affect the company's future financing capabilities and market confidence.

Company Overview: Rigetti Computing is one of the few publicly traded companies focused solely on quantum computing, highlighting its unique position in the market.
Earnings Report: The company's fourth-quarter earnings are a critical indicator of its performance and potential, serving as a significant test for investor confidence.
Investor Expectations: As a pure-play quantum computing firm, Rigetti has high expectations to meet from its investors regarding growth and innovation.
Market Challenges: The company faces challenges in proving its value and viability in a competitive and rapidly evolving technology landscape.
- Earnings Performance: Rigetti Computing reported a Q4 non-GAAP EPS of -$0.03, aligning with expectations, but revenue of $1.87 million fell 17.6% year-over-year and missed the forecast by $0.46 million, indicating challenges in the quantum computing sector.
- Market Reaction: Following the revenue miss, Rigetti's shares dropped by 5%, reflecting investor concerns about the company's future growth potential, particularly in the competitive semiconductor industry.
- Industry Comparison: Despite Rigetti's potential in quantum computing, analysts highlight a significant disconnect with Wall Street, suggesting that the stock is not the best investment choice and indicating that investors should consider more attractive alternatives.
- Future Outlook: As quantum computing technology evolves, Rigetti must implement effective strategies to boost revenue and market share to address competitive pressures and restore investor confidence.




