How are INSM 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 INSM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 57.80%), the computed maximum profit is $257.50 per contract and the computed maximum loss is -$242.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a INSM bear put spread?

The breakeven for the INSM bear put spread priced on this page is roughly $102.58 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 INSM market-implied 1-standard-deviation expected move is approximately 16.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current INSM implied volatility affect this bear put spread?

INSM ATM IV is at 57.80% with IV rank near 38.78%, 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.

INSM Bear Put Spread Strategy

INSM (Insmed Incorporated), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Insmed Incorporated operates as a biopharmaceutical enterprise focused on creating and introducing medical solutions for individuals facing severe and uncommon health conditions. The company's marketed treatment, ARIKAYCE, is administered to adult patients suffering from Mycobacterium avium complex (MAC) lung disease, serving as a component of a broader antibacterial drug regimen. In its development pipeline, Insmed is advancing Brensocatib, an oral and reversible inhibitor targeting dipeptidyl peptidase 1, which is being investigated for its potential in treating bronchiectasis and other disorders mediated by neutrophils. Additionally, the firm is developing Treprostinil Palmitil Inhalation Powder, an inhaled version of the treprostinil palmitil prodrug, designed to address pulmonary arterial hypertension and various other rare lung ailments. Founded in 1988, Insmed Incorporated maintains its primary corporate offices in Bridgewater, New Jersey.

INSM (Insmed Incorporated) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $22.41B, a beta of 0.77 versus the broader market, a 52-week range of 90.39-212.75, average daily share volume of 3.7M, a public-listing history dating back to 2000, approximately 1K full-time employees. These structural characteristics shape how INSM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.77 places INSM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a bear put spread on INSM?

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 INSM snapshot

As of June 29, 2026, spot at $104.57, ATM IV 57.80%, IV rank 38.78%, expected move 16.57%. The bear put spread on INSM 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 INSM specifically: INSM IV at 57.80% 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 16.57% (roughly $17.33 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 INSM expiries trade a higher absolute premium for lower per-day decay. Position sizing on INSM should anchor to the underlying notional of $104.57 per share and to the trader's directional view on INSM stock.

INSM bear put spread setup

The INSM 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 INSM near $104.57, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INSM 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 INSM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$105.00	$5.75
Sell 1	Put	$100.00	$3.33

INSM bear put spread risk and reward

Net Premium / Debit: -$242.50
Max Profit (per contract): $257.50
Max Loss (per contract): -$242.50
Breakeven(s): $102.58
Risk / Reward Ratio: 1.062

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.

INSM bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on INSM. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$257.50
$23.13	-77.9%	+$257.50
$46.25	-55.8%	+$257.50
$69.37	-33.7%	+$257.50
$92.49	-11.6%	+$257.50
$115.61	+10.6%	-$242.50
$138.73	+32.7%	-$242.50
$161.85	+54.8%	-$242.50
$184.97	+76.9%	-$242.50
$208.09	+99.0%	-$242.50

When traders use bear put spread on INSM

Bear put spreads on INSM reduce the cost of a bearish INSM stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.

INSM thesis for this bear put spread

The market-implied 1-standard-deviation range for INSM extends from approximately $87.24 on the downside to $121.90 on the upside. A INSM bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on INSM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current INSM IV rank near 38.78% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on INSM should anchor more to the directional view and the expected-move geometry. As a Healthcare name, INSM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INSM-specific events.

INSM 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. INSM positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INSM alongside the broader basket even when INSM-specific fundamentals are unchanged. Long-premium structures like a bear put spread on INSM 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 INSM chain quotes before placing a trade.

Frequently asked questions

What is a bear put spread on INSM?: A bear put spread on INSM is the bear put spread strategy applied to INSM (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 INSM stock trading near $104.57, the strikes shown on this page are snapped to the nearest listed INSM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are INSM 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 INSM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 57.80%), the computed maximum profit is $257.50 per contract and the computed maximum loss is -$242.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a INSM bear put spread?: The breakeven for the INSM bear put spread priced on this page is roughly $102.58 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 INSM market-implied 1-standard-deviation expected move is approximately 16.57%; 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 INSM?: Bear put spreads on INSM reduce the cost of a bearish INSM 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 INSM implied volatility affect this bear put spread?: INSM ATM IV is at 57.80% with IV rank near 38.78%, 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.