IBM is not your grandfather’s “big blue” stock anymore. The company has quickly blossomed into an essential leader in the quantum computing world. I want to own IBM using options to capture this potential new quantum computing “king”. IBM’s leadership, particularly under CEO Arvind Krishna, has transformed the company by making bold initiatives to divest from lethargic and legacy businesses and redirect the company’s focus to high-growth areas of hybrid cloud and (AI) artificial intelligence. HSBC on Thursday announced it has successfully used quantum computing in a trial to optimize bond trading, making it the first in the world to prove the value of the powerful emerging technology in the financial services industry. IBM YTD mountain IBM, YTD The HSBC partnership used production trading data across multiple IBM quantum systems, demonstrating how current quantum hardware can outperform current day methods in specific computational scenarios and marking quantum computing’s transition from experimental research into real business environments. In 2029, IBM plans to deliver a system that accurately runs 100 million gates on 200 logical qubits—unlocking the first viable path to realizing the full power of quantum computing. If you do not fully understand those metrics (like most of us), just think 1.21 Gigawatts from “Back to the Future”. (In the film Back to the Future, 1.21 gigawatts is the amount of electricity required to power the DeLorean time machine’s flux capacitor to initiate time travel.) The Trade (Risk Reversal) Sold the IBM 12/19/25 $275 put for $13.00 Bought the IBM 12/19/25 $285 call for $17.00 This will cost an investor $4.00 or $400 per one lot Break even on this options trade is $289 by expiration. IBM was trading heavily around $284 at the time of this spread. DISCLOSURES: (Long IBM and I have this specific trade on, also long $275 Calls and short $265 puts.) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
There’s a new potential quantum computing king. How to invest in it with less risk using options