Rigetti Computing (RGTI) stock options traders are pricing in a sizable move ahead of earnings. With the stock trading around $18.35, the closest at-the-money strike is $18.50. Importantly, the $18.50 call is priced at $1.10, while the $18.50 put is priced at $1.33, creating a straddle of $2.43. That implies a move of about 13.2%, giving RGTI an expected post-earnings range of roughly $15.92 to $20.78.
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Interestingly, the nearby strikes support a similar setup. The $18 straddle is priced at about $2.41, while the $19 straddle is around $2.48, so traders are consistently pricing in a move of roughly $2.40 to $2.50 around earnings. Positioning is active on both sides, but it is not perfectly balanced. In fact, the $18.50 call has 1,282 contracts traded versus 152 puts, while the $20 call has 2,326 contracts traded compared with 112 puts. This shows a clear interest in upside exposure.
That said, open interest shows that traders are also protecting against downside. The $16 put has 11,574 contracts in open interest, and the $18 put has 6,282, while the $20 call has 8,367 contracts in open interest. Overall, the options market is pricing in volatility first, with some bullish call activity layered on top. For investors, this means that a strong report will be needed to push the stock above the high end of the implied range.
Is RGTI Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RGTI stock based on eight Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RGTI price target of $30.67 per share implies 67.3% upside potential.
