Unusual Put Activity Is Flagging a Smart Trade Setup in This New Quantum Computing Stock

In Thursday’s options action, there were 63.56 million contracts traded, considerably higher than the 90-day average of 59.66 million. Of the 63+ million contracts, 57% were calls, with the top 100 accounting for 81% of the volume. 

When it comes to yesterday’s unusual options activity, quantum computing firm Infleqtion (INFQ) had the highest Vol/OI (volume-to-open-interest) ratio at 133.59, one of only two above 100, the other being Pfizer (PFE) at 113.18. 

I’d be lying if I said I knew a lot about Infleqtion or quantum computing. I do know it involves smart people solving complex problems with extraordinarily powerful computers. 

As someone who’s just trying to figure out how AI fits into my life, I won’t pretend I know whether Infleqtion will join the trillion-dollar club someday. 

However, what I can say is that the investors who traded  Infleqtion’s Jan. 15/2027 $10 put yesterday were sneaky smart. Here’s why. 

Have an excellent weekend.

The Option in Question

As you can see above, the put’s volume of 16,164 was 133.59 times the open interest of 121. With a DTE of 268 days, one can only speculate about what each buyer and seller of puts was thinking. 

The stock had five unusually active options yesterday -- excluding those expiring in less than seven days -- with three calls and two puts. The other put had a Jan. 15/2027 expiration, but with a $12.50 strike price. 

The other thing you’ll notice is that all five had the same expiration date. That’s too coincidental. The details of Infleqtion’s SPAC (special purpose acquisition company) merger will shed some light on the situation, and then we will get back to the options. 

The Key Details of Infleqtion’s SPAC Merger

Infleqtion announced on Sept. 8, 2025, that it would merge with Churchill Capital Corp X, one of the many SPACs Michael Klein had created over the past few years. 

The SPAC raised $414 million in its May 2025 IPO. Investors paid $10 a unit for one Class A share and one-quarter of one redeemable warrant to buy another Class A share for $11.50. 

Fast forward to February 13, 2026. The merger between the two companies closed; Infleqtion received over $540 million in cash, comprised of virtually all of the $414 million raised by the SPAC held in trust and more than $125 million raised through a PIPE (private investment in public equity). The merger valued Infleqtion at $2.43 billion, which included a pre-money valuation of $1.8 billion for existing Infleqtion investors. Its enterprise value is over $3 billion today. 

Infleqtion filed its 2025 10-K on March 31. It had no revenue, reporting a net loss of $66.9 million. However, if you exclude the expenses and change in fair value related to the subscription agreement liability, the net loss was a more palatable $1.99 million, primarily due to general and administrative costs. 

It’s not a business that I’d be interested in for two reasons: 1) It’s not going to be profitable for several years, and 2) I do not understand the technology. I didn’t pay enough attention in high school science class.

But that doesn’t mean you shouldn’t.

As for the popularity of 268-day DTEs yesterday, the merger prospectus states that “50% being locked up for 180 days post-Closing and 50% being locked up for 360 days post-Closing, subject to early release based on stock price performance.” But that was in the original, non-binding LOI (letter of intent) dated June 13, 2025, sent by Churchill Capital Corp X to Infleqtion.

Honestly, I don’t follow SPAC combinations enough to know if there’s anything to that, but given the Jan. 15/2027 expiration would be about a month from the one-year mark from the merger closing, it has to be a consideration for why someone would be interested in a 268-day call or put. 

The Jan. 15/2027 Puts

Although the $10 put had the highest Vol/OI ratio yesterday, the $12.50 put was also high at 28.92. Both are OTM (out-of-the-money). The three calls are deep OTM, ranging from 61% to 115%.

We are most likely looking at Long Strangles. 

The long strangle is a bet on increased volatility and a big move in either direction over the next 268 days. It involves buying a call and a put at a lower strike price. The maximum loss, or net debit, is what you pay for the long call and long put. Your maximum profit is unlimited.

So, let’s consider combinations with the $10 put first. 

Based on the information previously, the ask price for the put was $3.00. The ask prices for the $22.50, $25, and $30 calls were $3.00, $2.80, and $2.30, respectively. So your maximum loss is between $530 and $600.

Here’s how the $22.50 call and $10 put breakeven looks based on Friday morning trading:

As you can see, the net debit of $6.10 has only increased by 10 cents, and the profitability is less than 30% or one in three. 

Now the $12.50 put. 

Based on the information previously, the ask price for the put was $5.00. The ask prices for the $22.50, $25, and $30 calls were $3.00, $2.80, and $2.30, respectively. So your maximum loss is between $800 and $730.

Here’s how the $22.50 call and $12.50 put breakeven looks based on Friday morning trading:

As you can see, the net debit is $780, $20 less than yesterday’s cost, and the profit probability is slightly better.

Overall, the combination of the long $22.50 call and long $12.50 put has the best chance of success given an expected move of 56.82%.

Do you feel lucky? Someone does.  

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