ISRG Put Strategy Offers Income With a Lower Entry Price

An investor willing to commit $26,000 to Intuitive Surgical shares can collect roughly $1,140 today while waiting for the stock to fall to a more attractive price. The trade involves selling one cash-secured put on ISRG with a $260 strike price and a September 17, 2027 expiration.

With the stock recently near $369, the option sits well below the market. If ISRG remains above $260 at expiration, the put expires worthless and the investor keeps the premium, equivalent to about a 4.3% annualized return on the cash reserved for the purchase. If the shares fall below the strike, the seller must buy 100 shares at $260. After subtracting the premium, the effective entry price is about $248.60.

That is the appeal. It is also the risk.

The strategy does not protect against a deeper decline. If Intuitive Surgical trades materially below $248.60, the investor absorbs the loss dollar for dollar. The premium simply lowers the starting cost.

The company’s operating results help explain why the option market offers that cushion. Intuitive reported second-quarter 2026 revenue of $2.89 billion, up 19% from a year earlier, while its installed base of da Vinci surgical systems reached about 11,710, a 12% increase. Recurring revenue, which includes instruments, accessories, service and operating leases, accounted for 85% of quarterly sales, according to the company’s latest 10-Q.

Growth is no longer uniform. U.S. da Vinci procedure volume rose about 12% in the second quarter, down from 14% in the first quarter, with bariatric procedures declining as wider GLP-1 adoption changes patient demand. Outside the U.S., procedure growth was roughly 20% through the first half of 2026, helping offset the domestic slowdown.

Intuitive also placed 468 da Vinci systems during the quarter, including 246 newer da Vinci 5 units. That keeps the long-term recurring-revenue engine intact, but investors are now judging whether procedure growth can accelerate without sacrificing revenue per case.

For buyers already comfortable owning ISRG, the put offers a disciplined entry plan. For everyone else, the premium is payment for accepting concentrated downside risk, not free income.