December 2026 Options Now Available For Inspire Medical Systems (INSP)

For Inspire Medical Systems Inc. (INSP), currently trading at $82.66, options analysis highlights two distinct strategies. Selling an $80.00 strike put for a $17.00 premium offers a potential 19.10% annualized return if the option expires worthless, or an effective purchase price of $63.00 if assigned. Alternatively, a covered call strategy, involving buying INSP shares and selling a $90.00 strike call for $18.40, could yield a 31.14% total return if the stock is called away by December 2026, or a 20.01% annualized boost if the call expires worthless, presenting opportunities for income generation or discounted share acquisition with specified probabilities.

Analysis

The analysis presents two distinct options strategies for Inspire Medical Systems Inc. (INSP), currently trading at $82.66, offering specific risk-reward profiles. A cash-secured put at the $80.00 strike, with a $17.00 bid, provides a potential effective purchase price of $63.00, representing a 23.8% discount to the current market price, or a 19.10% annualized return if the option expires worthless. This $80.00 strike is approximately 3% out-of-the-money, with a 68% probability of expiring worthless.

Conversely, a covered call strategy, involving buying INSP shares and selling a $90.00 strike call for $18.40, targets a 31.14% total return if the stock is called away by December 2026. This $90.00 strike is about 9% out-of-the-money and has a 39% chance of expiring worthless, in which case the investor would realize a 20.01% annualized premium boost.

Both strategies leverage INSP's current valuation and options market dynamics. The put strategy appeals to investors seeking a lower entry point or income generation, while the covered call is suitable for those looking to enhance returns on existing or newly acquired shares, albeit with capped upside.

The implied volatility for the put contract is 66% and for the call contract is 63%, closely mirroring INSP's trailing twelve-month actual volatility of 63%. This alignment suggests that the market's pricing of these options is consistent with historical price movements, providing a reasonable basis for the outlined probabilities and potential returns.

Key Decisions for Investors

• Consider the cash-secured put strategy for INSP if seeking a discounted entry point or income generation, acknowledging the 68% probability of premium retention.
• Evaluate the covered call strategy for existing INSP holders or new buyers looking to generate income, understanding the 31.14% potential return if called away versus capped upside.
• Monitor INSP's price action and implied volatility, as current option pricing aligns with historical volatility, influencing the probabilities of option expiration outcomes.