Inspire Medical's INSP Soars 16.9%: A Surge Fueled by Earnings Triumph and Product Innovation

Summary
• Inspire Medical (INSP) surges 16.89% intraday, trading at $86.165 amid a 10% revenue jump and Inspire V launch progress
• Q3 2025 earnings highlight $224.5M revenue, 85.8% gross margin, and $0.38 adjusted EPS, surpassing prior guidance
• Options frenzy: 12 contracts traded, with INSP20251121C85 and INSP20251121C90 seeing 133% and 45% price gains

Today’s 16.9% surge in Inspire Medical (INSP) marks a seismic shift in investor sentiment, driven by Q3 earnings outperformance and strategic product momentum. The stock’s 86.165 price—up from a 79.35 intraday low—reflects renewed confidence in the company’s Inspire V transition and operational discipline. With 656,272 shares traded and a 2.45% turnover rate, the move underscores a critical inflection point for the medical device sector.

Q3 Earnings and Inspire V Transition Drive 16.9% Rally
Inspire Medical’s 16.89% intraday surge stems from a Q3 earnings report that exceeded expectations and progress on the Inspire V neurostimulation system. The company reported $224.5M in revenue (up 10% YoY), 85.8% gross margin, and $0.38 adjusted EPS—well above prior guidance of $0.40–$0.50. Management highlighted 100% successful device implants in Inspire V trials, 20% shorter surgical times, and 75% of U.S. centers transitioning to the new system. These metrics, combined with $68.5M in operating cash flow and a $50M share repurchase, signaled disciplined execution and product differentiation. The rally also reflects optimism about Inspire V’s potential to dominate the obstructive sleep apnea market, with 100% of patients in clinical trials experiencing clinically relevant disease severity reductions.

Medical Device Sector Volatility as Medtronic Trails INSP’s Momentum
While Inspire Medical’s 16.9% gain defies broader sector trends, Medtronic (MDT), the sector leader, fell 0.19% intraday. The divergence highlights INSP’s product-driven momentum versus MDT’s reliance on steady but unremarkable cardiovascular sales. Medtronic’s recent acquisition of Nalu Medical and focus on chronic pain management contrast with Inspire’s surgical robotics and AI-driven innovation. INSP’s 201.3x dynamic P/E ratio—far above MDT’s 15.2x—reflects investor willingness to pay a premium for Inspire’s disruptive potential in sleep apnea treatment.

Options and ETF Playbook: Capitalizing on INSP’s Volatility and Technical Setup
• 200-day MA: 131.29 (far below current price); RSI: 37.58 (oversold); MACD: -1.77 (bearish) with signal line at -1.37
• Bollinger Bands: Price at 86.165 (above upper band of 83.29), signaling overbought conditions
• Kline pattern: Short-term bullish engulfing pattern amid long-term bearish trend

INSP’s 16.9% intraday surge has created a volatile setup, with key resistance at the 52W high of 216.01 and support at the 52W low of 70.77. The stock’s 37.58 RSI suggests oversold conditions, while the MACD histogram (-0.396) indicates bearish momentum. However, the bullish engulfing pattern and 200-day MA crossover suggest a short-term rebound. For leveraged exposure, consider the XLF ETF (XLF) or MDT (Medtronic) as sector proxies, though INSP’s 201.3x P/E demands caution.

Top Options Contracts:
• INSP20251121C85 (Call, $85 strike, Nov 21 expiry):
- IV: 58.58% (moderate)
- Leverage: 13.98%
- Delta: 0.6386 (moderate sensitivity)
- Theta: -0.2339 (high time decay)
- Gamma: 0.0327 (high sensitivity to price changes)
- Turnover: 54,054 (high liquidity)
- Payoff at 5% upside (86.165 → 90.47): $5.47/share
- Rationale: High gamma and moderate IV make this contract ideal for a continuation of the bullish move. The 133.33% price gain in the last 24 hours validates its liquidity and momentum.

• INSP20251121C90 (Call, $90 strike, Nov 21 expiry):
- IV: 50.86% (moderate)
- Leverage: 27.53%
- Delta: 0.4539 (moderate sensitivity)
- Theta: -0.1939 (high time decay)
- Gamma: 0.0398 (high sensitivity)
- Turnover: 1,556 (moderate liquidity)
- Payoff at 5% upside: $0.47/share
- Rationale: The 27.53% leverage ratio and 45.45% price gain position this as a high-reward, high-risk play. Gamma and IV suggest it could outperform if the rally accelerates.

Action: Aggressive bulls should target INSP20251121C85 into a break above 86.165. Cautious traders may short the 200-day MA gap (131.29) with a stop at 83.29.

Backtest Inspire Medical Stock Performance
It looks like the event-detection step completed successfully, but when the back-test engine tried to evaluate those events it received an empty list and halted with an internal error (the engine expects at least one qualifying date).What happened 1. I scanned every INSP trading session from 2022-01-01 to 2025-11-04. 2. For each day I computed the intraday jump = (high − open)/open. 3. No day reached or exceeded a 17 % intraday rise, so the resulting event-date file contained zero entries. 4. The event_backtest_engine then failed because it could not process an empty event set (backend bug).Next steps – pick one of the following:A. Lower the surge threshold (e.g., 10 %, 12 %, 15 %) and re-run the analysis. B. Extend the look-back further (e.g., start from 2019) to see if earlier years contained 17 % surges. C. Abort the task.Let me know which option you prefer (or any other adjustment), and I’ll proceed accordingly.

INSP’s 16.9% Rally: A Catalyst or Correction? Watch 83.29 and 90.47
Inspire Medical’s 16.9% surge reflects a rare confluence of earnings outperformance and product innovation, but the 201.3x P/E and 37.58 RSI suggest caution. The stock’s 86.165 price is above the 83.29 upper Bollinger Band, indicating overbought conditions. Key levels to watch: 83.29 (support), 90.47 (5% upside target), and 131.29 (200-day MA). Medtronic’s -0.19% move highlights sector divergence, but INSP’s 201.3x P/E demands a high conviction in its Inspire V transition. Action: Buy INSP20251121C85 if 86.165 holds; short the 200-day MA gap if 83.29 breaks.