INSP Long Put 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 $1.32B, a trailing P/E of 10.01, a beta of 0.73 versus the broader market, a 52-week range of 38.91-147.03, average daily share volume of 1.2M, 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 0.73 places INSP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.01 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 long put on INSP?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
Current INSP snapshot
As of June 29, 2026, spot at $44.77, ATM IV 70.90%, IV rank 28.92%, expected move 20.33%. The long put on INSP 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 53-day expiry.
Why this long put structure on INSP specifically: INSP IV at 70.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a INSP long put, with a market-implied 1-standard-deviation move of approximately 20.33% (roughly $9.10 on the underlying). The 53-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 $44.77 per share and to the trader's directional view on INSP stock.
INSP long put setup
The INSP long put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With INSP near $44.77, the first option leg uses a $45.00 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 53-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 | Put | $45.00 | $5.05 |
INSP long put risk and reward
- Net Premium / Debit
- -$505.00
- Max Profit (per contract)
- $3,994.00
- Max Loss (per contract)
- -$505.00
- Breakeven(s)
- $39.95
- Risk / Reward Ratio
- 7.909
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
INSP long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$3,994.00 |
| $9.91 | -77.9% | +$3,004.22 |
| $19.81 | -55.8% | +$2,014.44 |
| $29.70 | -33.7% | +$1,024.66 |
| $39.60 | -11.5% | +$34.88 |
| $49.50 | +10.6% | -$505.00 |
| $59.40 | +32.7% | -$505.00 |
| $69.29 | +54.8% | -$505.00 |
| $79.19 | +76.9% | -$505.00 |
| $89.09 | +99.0% | -$505.00 |
When traders use long put on INSP
Long puts on INSP hedge an existing long INSP stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying INSP exposure being hedged.
INSP thesis for this long put
The market-implied 1-standard-deviation range for INSP extends from approximately $35.67 on the downside to $53.87 on the upside. A INSP long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long INSP position with one put per 100 shares held. Current INSP IV rank near 28.92% 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 70.90%. 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 long put positions are structurally 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. 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. Long-premium structures like a long put on INSP 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 INSP chain quotes before placing a trade.
Frequently asked questions
- What is a long put on INSP?
- A long put on INSP is the long put strategy applied to INSP (stock). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With INSP stock trading near $44.77, the strikes shown on this page are snapped to the nearest listed INSP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are INSP long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the INSP long put priced from the end-of-day chain at a 30-day expiry (ATM IV 70.90%), the computed maximum profit is $3,994.00 per contract and the computed maximum loss is -$505.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a INSP long put?
- The breakeven for the INSP long put priced on this page is roughly $39.95 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 INSP market-implied 1-standard-deviation expected move is approximately 20.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long put on INSP?
- Long puts on INSP hedge an existing long INSP stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying INSP exposure being hedged.
- How does current INSP implied volatility affect this long put?
- INSP ATM IV is at 70.90% with IV rank near 28.92%, 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.