Microsoft's "Majorana" Breakthrough Is Moving Quantum Stocks
By Brandon Chapman, CMT
Microsoft Corp (MSFT) announced a breakthrough in quantum computing with its new Majorana 1 chip.
As you might expect, this breakthrough is leading option traders to quantum stocks. This in turn begs the question: Is a breakout imminent?
Well, here's the summary "upshot" of the discovery - from Microsoft's own Copilot AI, no less…
"Microsoft unveiled the Majorana 1 chip, a breakthrough in quantum computing. Utilizing topological qubits, it promises more reliable and scalable quantum calculations. This chip, fitting in the palm of a hand, aims to solve industrial-scale problems within years, not decades. It marks a significant step towards practical quantum computing, potentially revolutionizing various industries."
This announcement led to over a 1% move in shares of MSFT, but the real opportunity may be with quantum computing stocks. If, like me, you scan the option pulses in this space, you'll find a significant amount of call buying in anticipation of a big move.
What's more, many of these stocks - Rigetti Computing (RGTI), IONQ (IONQ), Quantum Computing (QUBT), Super Micro Computer (SMCI), among others - carry more than 20% short interest. That's quite a lot, and, if these stocks start edging higher, the potential for a bigger squeeze move is high.
Let's explore today's option activity and what's setting up…
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