Trade Alert: Quantum Uncertainty
Bullish options trades on our #1 and #10 names from Friday, a quantum computing stock and a biotech buyout candidate.
A Previous Winner Returns To Our Top Names
We’ve got two Portfolio Armor Top Names trades teed up for today, based on the #1 name and the #10 name from Friday’s top ten list (regular readers know that our system’s top names have nearly doubled the S&P 500’s performance since December of 2022; new readers can see their performance here). As usual, we’ll save the details of the first name for paid subscribers, but we can say it’s a quantum stock we’ve traded successfully before; consistent with our policy of revisiting winners, we have another trade set up on it now with uncapped upside.
Uncertainty And Biotech
Before getting to our second trade, a quick note on process. To be able to send these alerts out shortly after placing trades during market hours, I usually draft most of the alert the night before. That way, during the session, I only need to update the trade details as needed (for example, adding my actual fills) before hitting send. That’s particularly relevant given the second trade today.
Our second trade involves Abivax (ABVX 0.00%↑), which I wrote about in a previous post here.
ABVX first came onto my radar via our Multibaggers list, which is a subset of analysts and traders from our Market Watchers X list who have documented 100% winners over the past year. Based on that, and speculation that ABVX might be bought out during this week’s JPMorgan healthcare conference, we put on short-dated trades expiring this Friday to try to capture a near-term buyout.
Even if a buyout doesn’t happen this week, I’m still bullish on ABVX eventually being acquired, and on the drug that’s attracting so much big-pharma interest. Since ABVX also appeared in our Top Names on Friday, I’m taking the opportunity to add a longer-dated trade as well. In this case, we’ll go out to April, which gives us exposure not just to this week’s conference, but also to the broader near-term M&A window and upcoming data and conference catalysts; the structure we’re using should also profit if a buyout happens this week. (Of course, if the buyout happened in the premarket, after I drafted this, you can disregard the ABVX part of this alert. No buyout in the premarket, but some wild fluctuations on conflicting reports.)
Today’s First Top Names Trade
(Quantum computing)
The stock is D-Wave Quantum (QBTS 0.00%↑), and our trade is a hybrid combo consisting of these four legs:
Buying the $34 strike call expiring on June 18th, 2026,
Selling the $40 strike call expiring on April 17th, 2026,
Selling the $25 strike put expiring on April 17th, 2026, and
Buying the $22 strike put expiring on April 17th, 2026,
For a max net debit of $2.10. The max gain on 1 contract is $757.70, the max loss is $510, and the break-even is with QBTS at $26.42. This trade filled at $1.75.
Today’s Second Top Names Trade
(Biotech M&A)
The stock is Abivax (ABVX 0.00%↑), and our trade is a hybrid combo consisting of these four legs:
Buying the $160 strike call expiring on April 17th, 2026,
Selling the $160 strike call expiring on January 30th, 2026,
Selling the $110 strike put expiring on January 30th, 2026, and
Buying the $105 strike put expiring on January 30th, 2026,
For a max net debit of $1.00. The max loss on 1 contract is $600, upside is uncapped, and the break-even is with ABVX at $105.60. This trade hasn’t filled yet. This is a day order. The stock has been bouncing around wildly on a report that Lilly is preparing a bid in the $200/share range and on another report that the French Finance Ministry hasn’t been in contact with any potential suitor about foreign investment screening yet. If our trade doesn’t fill today, we can reassess after the close.
Exiting These Trades
My plan:
QBTS
Calls/Calendar (legs 1 & 2): Open a GTC limit order to buy-to-close the April 17th, 2026 $40 short call at $0.20, and raise that price if necessary as we approach expiration. If the short call expires in the money, I’ll sell the June 18th, 2026 $34 call and use part of the proceeds to buy-to-close the short call. If the short call expires out of the money, I’ll share a limit sell price for the June 18th, 2026 $34 call in the comments here and via chat/email closer to expiration.
Put spread (legs 3 & 4): Open a GTC limit order to buy-to-close the April 17th, 2026 $25/$22 put spread at $0.20, and raise that price if necessary as we approach expiration.
ABVX (assuming it fills)
Calls/Calendar (legs 1 & 2): Open a GTC limit order to buy-to-close the January 30th, 2026 $160 short call at $0.20, and raise that price if necessary as we approach expiration. If the short call expires in the money, I’ll sell the April 17th, 2026 $160 call and use part of the proceeds to buy-to-close the short call. If the short call expires out of the money, I’ll hold the April 17th, 2026 $160 call as a buyout tail; if we get a buyout announcement before expiration, I’ll plan on selling the long call into that strength, and if there’s no buyout announcement by then, I’ll sell it for whatever I can get for it before expiration.
Put spread (legs 3 & 4): Open a GTC limit order to buy-to-close the January 30th, 2026 $110/$105 put spread at $0.20, and raise that price if necessary as we approach expiration.