Rigetti Computing's stock experienced a sharp plummet of 6.13% in the pre-market trading session on Friday, following a volatile session on Thursday where the stock initially surged over 31% before paring gains.
The pre-market sell-off in Rigetti Computing's shares can be attributed to heavy options trading activity observed on Thursday, particularly involving call options with a strike price of $19 expiring on January 3rd. These call options saw a massive 600% surge in value on Thursday, suggesting that traders were aggressively betting on further upside in the stock.
However, data from options trading activity on Thursday also revealed significant bearish sentiment towards Rigetti Computing. The stock was among the top bearish stocks based on options delta volume, with traders selling a net equivalent of over 1.2 million shares. This bearish activity, coupled with the profit-taking after Thursday's rally, appears to have contributed to the pre-market decline on Friday.
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