INMD Bear Put Spread Strategy
INMD (InMode Ltd.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
InMode Ltd. is a medical technology company that engineers, produces, and commercializes aesthetic medical devices globally, including within the United States. The firm's product portfolio is extensive, covering both less-invasive and non-surgical solutions. A core focus lies in their minimally invasive offerings, which leverage exclusive radiofrequency-assisted lipolysis (RFAL) and deep subdermal fractional radiofrequency technologies. These advanced devices facilitate a range of procedures, such as liposuction with concurrent skin firming, body and facial sculpting, intensive skin resurfacing treatments, and various women's health-related aesthetic interventions. Beyond these, InMode also provides non-invasive medical aesthetic products designed to address numerous cosmetic concerns. These include lasting hair removal, facial skin revitalization, the reduction of wrinkles, cellulite improvement, enhancing overall dermal quality and texture, and treating minor vascular and pigmented skin imperfections.
INMD (InMode Ltd.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $840.9M, a trailing P/E of 10.64, a beta of 1.93 versus the broader market, a 52-week range of 12.72-16.74, average daily share volume of 847K, a public-listing history dating back to 2019, approximately 599 full-time employees. These structural characteristics shape how INMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.93 indicates INMD has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 10.64 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a bear put spread on INMD?
A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width.
Current INMD snapshot
As of June 29, 2026, spot at $14.71, ATM IV 316.60%, IV rank 63.49%, expected move 90.77%. The bear put spread on INMD below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 18-day expiry.
Why this bear put spread structure on INMD specifically: INMD IV at 316.60% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 90.77% (roughly $13.35 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated INMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on INMD should anchor to the underlying notional of $14.71 per share and to the trader's directional view on INMD stock.
INMD bear put spread setup
The INMD bear put spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With INMD near $14.71, the first option leg uses a $14.71 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INMD chain at a 18-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 INMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $14.71 | N/A |
| Sell 1 | Put | $13.97 | N/A |
INMD bear put spread risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
INMD bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on INMD. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use bear put spread on INMD
Bear put spreads on INMD reduce the cost of a bearish INMD stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
INMD thesis for this bear put spread
The market-implied 1-standard-deviation range for INMD extends from approximately $1.36 on the downside to $28.06 on the upside. A INMD bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on INMD, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current INMD IV rank near 63.49% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on INMD should anchor more to the directional view and the expected-move geometry. As a Healthcare name, INMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INMD-specific events.
INMD bear put spread positions are structurally moderately bearish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. INMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INMD alongside the broader basket even when INMD-specific fundamentals are unchanged. Long-premium structures like a bear put spread on INMD are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current INMD chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on INMD?
- A bear put spread on INMD is the bear put spread strategy applied to INMD (stock). The strategy is structurally moderately bearish: A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width. With INMD stock trading near $14.71, the strikes shown on this page are snapped to the nearest listed INMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are INMD bear put spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit. For the INMD bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 316.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a INMD bear put spread?
- The breakeven for the INMD bear put spread priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current INMD market-implied 1-standard-deviation expected move is approximately 90.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bear put spread on INMD?
- Bear put spreads on INMD reduce the cost of a bearish INMD stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
- How does current INMD implied volatility affect this bear put spread?
- INMD ATM IV is at 316.60% with IV rank near 63.49%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.