Key Takeaways
- New options contracts for Inspire Medical Systems Inc. (INSP) have become available with a December 2026 expiration.
- A sell-to-open put contract at an $80.00 strike price offers a potential cost basis of $63.00 per share if assigned, representing an attractive entry point for investors.
- A sell-to-open call contract at a $90.00 strike price, when combined with owning INSP shares, could yield a total return of over 31% if the stock reaches the strike price by expiration.
- The availability of longer-dated options allows for potentially higher premiums due to increased time value.
Exploring New INSP Options for December 2026 Expiration
Investors in Inspire Medical Systems Inc. (INSP) now have new options available for expiration in December 2026. The extended timeframe until expiration, approximately 406 days, can be a significant factor for option sellers aiming to secure higher premiums . This extended duration increases the time value component of the option’s price.
Analyzing Potential Put Option Strategy
One option contract of particular interest is a put contract with an $80.00 strike price. The current bid for this contract is $17.00. For an investor looking to sell this put option, they would agree to purchase INSP shares at $80.00 if the option is exercised. However, by collecting the $17.00 premium, their effective cost basis for acquiring the shares would be reduced to $63.00, excluding any brokerage commissions. This strategy could be appealing to investors who are already considering buying INSP shares at a price point near its current trading value.
💡 The $80.00 strike price is approximately 3% below the current trading price of INSP, meaning it is currently out-of-the-money. Current data suggests a 68% probability that this put contract will expire worthless, allowing the seller to retain the full premium collected.
📊 Should this put contract expire without being assigned, the $17.00 premium would represent a 21.25% return on the cash commitment. Annualized, this return is approximately 19.10%, a concept referred to as YieldBoost.
Evaluating Covered Call Opportunities
On the call options side, a contract with a $90.00 strike price is available with a current bid of $18.40. For investors who own INSP shares trading around $82.66, selling this call option as a covered call presents another strategic possibility. This would obligate the seller to sell their shares at $90.00 if the option is exercised by expiration. Factoring in the $18.40 premium received, the total potential return, assuming the shares are called away at the December 2026 expiration and excluding any dividends, could reach 31.14%. Investors should consider the potential for substantial share price appreciation that might be capped with this strategy, making a thorough analysis of the company’s fundamentals and historical price movements crucial.
📍 The $90.00 strike price is approximately 9% above the current trading price of INSP, indicating it is currently out-of-the-money. There is a notable chance that this call contract could expire worthless.
⚡ Current analytics suggest a 39% probability of this covered call contract expiring worthless. If this occurs, the investor would retain ownership of their INSP shares and the collected premium.
✅ In the event the covered call option expires worthless, the $18.40 premium would provide an additional 22.26% return on the covered position, equating to an annualized yield of 20.01%. This is also categorized as a YieldBoost.
Volatility Considerations
The implied volatility for the discussed put contract stands at 66%, while the implied volatility for the call contract is 63%.
📊 In comparison, the actual trailing twelve-month volatility for INSP, calculated using the last 250 trading days and the current price of $82.66, is 63%.
Final Thoughts
The introduction of longer-dated options for INSP presents opportunities for investors to potentially enhance returns through premium collection, either by selling puts to establish a desired cost basis or by selling covered calls to generate income. Evaluating current market conditions, stock volatility, and individual investment goals is essential when considering these strategies.