IRTC Long Put Strategy
IRTC (iRhythm Technologies, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
iRhythm Technologies, Inc. is a digital healthcare enterprise dedicated to offering portable electrocardiogram (ECG) monitoring solutions to individuals in the United States who face the risk of cardiac arrhythmias. Its primary offering, the Zio service, provides a comprehensive ambulatory cardiac monitoring system. This system ingeniously combines a wireless, patch-based, and wearable biosensor—specifically embodied in products like the Zio XT and AT monitors—with a sophisticated cloud-based data analysis platform. These single-use biosensors precisely record a patient's heartbeats and ECG data, thereby enabling medical professionals to effectively oversee patient heart health and accurately diagnose arrhythmias. Furthermore, iRhythm maintains a strategic development partnership with Verily Life Sciences LLC, focused on pioneering future atrial fibrillation screening, detection, and monitoring innovations. Founded in 2006, the company maintains its corporate headquarters in San Francisco, California.
IRTC (iRhythm Technologies, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $3.91B, a beta of 1.28 versus the broader market, a 52-week range of 100.846-212, average daily share volume of 534K, a public-listing history dating back to 2016, approximately 2K full-time employees. These structural characteristics shape how IRTC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places IRTC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a long put on IRTC?
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 IRTC snapshot
As of June 30, 2026, spot at $118.22, ATM IV 47.00%, IV rank 32.60%, expected move 13.47%. The long put on IRTC 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 17-day expiry.
Why this long put structure on IRTC specifically: IRTC IV at 47.00% 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 13.47% (roughly $15.93 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IRTC expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRTC should anchor to the underlying notional of $118.22 per share and to the trader's directional view on IRTC stock.
IRTC long put setup
The IRTC 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 IRTC near $118.22, the first option leg uses a $120.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRTC chain at a 17-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 IRTC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $120.00 | $5.45 |
IRTC long put risk and reward
- Net Premium / Debit
- -$545.00
- Max Profit (per contract)
- $11,454.00
- Max Loss (per contract)
- -$545.00
- Breakeven(s)
- $114.55
- Risk / Reward Ratio
- 21.017
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
IRTC long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on IRTC. 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% | +$11,454.00 |
| $26.15 | -77.9% | +$8,840.20 |
| $52.29 | -55.8% | +$6,226.40 |
| $78.42 | -33.7% | +$3,612.60 |
| $104.56 | -11.6% | +$998.80 |
| $130.70 | +10.6% | -$545.00 |
| $156.84 | +32.7% | -$545.00 |
| $182.98 | +54.8% | -$545.00 |
| $209.11 | +76.9% | -$545.00 |
| $235.25 | +99.0% | -$545.00 |
When traders use long put on IRTC
Long puts on IRTC hedge an existing long IRTC stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying IRTC exposure being hedged.
IRTC thesis for this long put
The market-implied 1-standard-deviation range for IRTC extends from approximately $102.29 on the downside to $134.15 on the upside. A IRTC long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long IRTC position with one put per 100 shares held. Current IRTC IV rank near 32.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on IRTC should anchor more to the directional view and the expected-move geometry. As a Healthcare name, IRTC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRTC-specific events.
IRTC 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. IRTC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IRTC alongside the broader basket even when IRTC-specific fundamentals are unchanged. Long-premium structures like a long put on IRTC 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 IRTC chain quotes before placing a trade.
Frequently asked questions
- What is a long put on IRTC?
- A long put on IRTC is the long put strategy applied to IRTC (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 IRTC stock trading near $118.22, the strikes shown on this page are snapped to the nearest listed IRTC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IRTC 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 IRTC long put priced from the end-of-day chain at a 30-day expiry (ATM IV 47.00%), the computed maximum profit is $11,454.00 per contract and the computed maximum loss is -$545.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IRTC long put?
- The breakeven for the IRTC long put priced on this page is roughly $114.55 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 IRTC market-implied 1-standard-deviation expected move is approximately 13.47%; 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 IRTC?
- Long puts on IRTC hedge an existing long IRTC stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying IRTC exposure being hedged.
- How does current IRTC implied volatility affect this long put?
- IRTC ATM IV is at 47.00% with IV rank near 32.60%, 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.