INMD Bull Call Spread Strategy
INMD (InMode Ltd.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
InMode Ltd. designs, develops, manufactures, and markets minimally invasive aesthetic medical products based on its proprietary radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency technologies in the United States and internationally. The company offers minimally invasive aesthetic medical products for various procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments, as well as for use in women's health conditions and procedures. It also designs, develops, manufactures, and markets non-invasive medical aesthetic products that target an array of procedures, including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture, and superficial benign vascular and pigmented lesions, as well as hands-free medical aesthetic products that target a range of procedures, such as skin tightening, fat reduction, and muscle stimulation. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was incorporated in 2008 and is headquartered in Yokneam, Israel.
INMD (InMode Ltd.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $889.6M, a trailing P/E of 10.21, a beta of 1.98 versus the broader market, a 52-week range of 12.72-16.74, average daily share volume of 939K, 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 1.98 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 10.21 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 bull call spread on INMD?
A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width.
Current INMD snapshot
As of May 15, 2026, spot at $13.92, ATM IV 26.10%, IV rank 5.05%, expected move 7.48%. The bull call 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 34-day expiry.
Why this bull call spread structure on INMD specifically: INMD IV at 26.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a INMD bull call spread, with a market-implied 1-standard-deviation move of approximately 7.48% (roughly $1.04 on the underlying). The 34-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 $13.92 per share and to the trader's directional view on INMD stock.
INMD bull call spread setup
The INMD bull call 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 $13.92, the first option leg uses a $13.92 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 34-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 | Call | $13.92 | N/A |
| Sell 1 | Call | $14.62 | N/A |
INMD bull call 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-call strike plus net debit.
INMD bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call 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 bull call spread on INMD
Bull call spreads on INMD reduce the cost of a bullish INMD stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
INMD thesis for this bull call spread
The market-implied 1-standard-deviation range for INMD extends from approximately $12.88 on the downside to $14.96 on the upside. A INMD bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call 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 5.05% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on INMD at 26.10%. 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 bull call spread positions are structurally moderately bullish; 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 bull call 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 bull call spread on INMD?
- A bull call spread on INMD is the bull call spread strategy applied to INMD (stock). The strategy is structurally moderately bullish: A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width. With INMD stock trading near $13.92, 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 bull call 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-call strike plus net debit. For the INMD bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 26.10%), 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 bull call spread?
- The breakeven for the INMD bull call 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 7.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bull call spread on INMD?
- Bull call spreads on INMD reduce the cost of a bullish INMD stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
- How does current INMD implied volatility affect this bull call spread?
- INMD ATM IV is at 26.10% with IV rank near 5.05%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.