How are INSP strangle max profit and max loss calculated?

Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the INSP strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 45.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$144.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a INSP strangle?

The breakeven for the INSP strangle priced on this page is roughly $53.56 and $61.45 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 strangle?

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 Strangle 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 strangle on INSP?

A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money.

INSP snapshot

As of August 14, 2026, spot at $57.25, ATM IV 45.40%, IV rank 2.03%, expected move 13.02%. The strangle 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 strangle 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 strangle, 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 strangle setup

The INSP strangle 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 $60.00 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	$60.00	$0.68
Buy 1	Put	$55.00	$0.77

INSP strangle risk and reward

Net Premium / Debit: -$144.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$144.50
Breakeven(s): $53.56, $61.45
Risk / Reward Ratio: Unbounded

Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit.

INSP strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle 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%	+$5,354.50
$12.67	-77.9%	+$4,088.78
$25.32	-55.8%	+$2,823.06
$37.98	-33.7%	+$1,557.34
$50.64	-11.5%	+$291.63
$63.30	+10.6%	+$185.09
$75.95	+32.7%	+$1,450.81
$88.61	+54.8%	+$2,716.53
$101.27	+76.9%	+$3,982.25
$113.92	+99.0%	+$5,247.97

When traders use strangle on INSP

Strangles on INSP are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the INSP chain.

INSP thesis for this strangle

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 strangle is the OTM cousin of the straddle: lower up-front cost but the underlying has to travel further past either OTM strike before the position turns profitable at expiration. 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 strangle positions are structurally neutral / high-volatility (long premium, OTM); 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 strangle on INSP?: A strangle on INSP is the strangle strategy applied to INSP (stock). The strategy is structurally neutral / high-volatility (long premium, OTM): A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money. 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 strangle max profit and max loss calculated?: Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the INSP strangle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 45.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$144.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a INSP strangle?: The breakeven for the INSP strangle priced on this page is roughly $53.56 and $61.45 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 strangle on INSP?: Strangles on INSP are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the INSP chain.
How does current INSP implied volatility affect this strangle?: 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.