How are INSP butterfly max profit and max loss calculated?

Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the INSP butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 45.40%), 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 INSP butterfly?

The breakeven for the INSP butterfly priced on this page is roughly $57.58 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The INSP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current INSP implied volatility affect this butterfly?

INSP ATM IV is at 45.40% with IV rank near 2.03%, 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.

INSP Butterfly Strategy

INSP (Inspire Medical Systems, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NYSE.

Inspire Medical Systems, Inc. operates as a medical technology enterprise, concentrating on the development and commercialization of advanced, minimally intrusive therapies for patients diagnosed with obstructive sleep apnea (OSA) across both domestic U.S. and international markets. A cornerstone of its product portfolio is the Inspire system, an innovative neurostimulation solution that offers a safe and proven effective treatment for individuals experiencing moderate to severe forms of OSA. Additionally, the company is pioneering a novel, closed-loop technology designed to continuously track a patient's breathing patterns and administer mild stimulation to the hypoglossal nerve, thereby maintaining an open airway. Founded in 2007, Inspire Medical Systems maintains its corporate headquarters in Golden Valley, Minnesota.

INSP (Inspire Medical Systems, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.68B, a trailing P/E of 12.44, a beta of 0.67 versus the broader market, a 52-week range of 38.91-147.03, average daily share volume of 1.1M, a public-listing history dating back to 2018, approximately 1K full-time employees. These structural characteristics shape how INSP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.67 indicates INSP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. INSP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on INSP?

A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.

INSP snapshot

As of August 14, 2026, spot at $57.25, ATM IV 45.40%, IV rank 2.03%, expected move 13.02%. The butterfly on INSP below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.

Why this butterfly structure on INSP specifically: INSP IV at 45.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a INSP butterfly, with a market-implied 1-standard-deviation move of approximately 13.02% (roughly $7.45 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated INSP expiries trade a higher absolute premium for lower per-day decay. Position sizing on INSP should anchor to the underlying notional of $57.25 per share and to the trader's directional view on INSP stock.

INSP butterfly setup

The INSP butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With INSP at $57.25 on that close, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INSP chain at a 7-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 INSP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$55.00	$3.25
Sell 2	Call	$55.00	$3.25
Buy 1	Call	$60.00	$0.68

INSP butterfly risk and reward

Net Premium / Debit: +$257.50
Max Profit (per contract): $257.50
Max Loss (per contract): -$242.50
Breakeven(s): $57.58
Risk / Reward Ratio: 1.062

Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.

INSP butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on INSP. 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
$12.67	-77.9%	+$257.50
$25.32	-55.8%	+$257.50
$37.98	-33.7%	+$257.50
$50.64	-11.5%	+$257.50
$63.30	+10.6%	-$242.50
$75.95	+32.7%	-$242.50
$88.61	+54.8%	-$242.50
$101.27	+76.9%	-$242.50
$113.92	+99.0%	-$242.50

When traders use butterfly on INSP

Butterflies on INSP are pinning bets - traders use them when they expect INSP to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.

INSP thesis for this butterfly

The market-implied 1-standard-deviation range for INSP extends from approximately $49.80 on the downside to $64.70 on the upside. A INSP long call butterfly is a pinning play: it pays maximum at the middle strike if INSP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current INSP IV rank near 2.03% 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 INSP at 45.40%. As a Healthcare name, INSP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INSP-specific events.

INSP butterfly positions are structurally neutral / pin (limited-risk, limited-reward); 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. INSP positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INSP alongside the broader basket even when INSP-specific fundamentals are unchanged. Always rebuild the position from current INSP chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on INSP?: A butterfly on INSP is the butterfly strategy applied to INSP (stock). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With INSP stock at $57.25 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed INSP chain strike and the premiums come straight from that session's bid/ask midpoint.
How are INSP butterfly max profit and max loss calculated?: Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the INSP butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 45.40%), 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 INSP butterfly?: The breakeven for the INSP butterfly priced on this page is roughly $57.58 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The INSP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on INSP?: Butterflies on INSP are pinning bets - traders use them when they expect INSP to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
How does current INSP implied volatility affect this butterfly?: INSP ATM IV is at 45.40% with IV rank near 2.03%, 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.