A company called DexCom makes a special device to help people monitor their blood sugar levels. Some smart people who study companies (analysts) think this company is worth a lot of money and give it high scores. They also use something called options, which are like bets on how the company will do in the future. This article talks about what these smart people think and how they change their minds sometimes. It's important for people who want to invest their money in this company or other companies that make similar devices. Read from source...
- The title of the article is misleading because it implies that only big money is thinking about DexCom options, while in reality, any investor can consider them.
- The author uses vague terms like "big money" and "what they are thinking" without providing any concrete evidence or sources to support their claims. This creates a sense of mystery and authority around the subject that may not be justified.
- The article focuses mainly on the ratings and targets given by analysts, which are often influenced by their own interests and agendas. It does not provide a balanced view of other factors that may affect DexCom's performance, such as competition, market trends, innovation, customer feedback, etc.
- The article includes an advertisement for Benzinga Pro, which is a clear conflict of interest and may bias the reader towards subscribing to their service. This also undermines the credibility of the article and its author.
1. Buy 100 call options of DXCM with a strike price of $165 and an expiration date of 36 days from now, at a premium of $10 per option. This will cost you $1 million in total.
2. Sell 50 put options of DXCM with a strike price of $175 and an expiration date of 36 days from now, at a premium of $5 per option. This will generate $250,000 in income in total.
3. Set a stop-loss order for your call options at $145 per share, meaning if the price drops below this level, you will automatically sell your shares to avoid further losses.
4. Set a take-profit order for your call options at $200 per share, meaning if the price rises above this level, you will automatically sell your shares to lock in your profits.
5. Monitor the market closely and adjust your trades as needed based on new information, news, or changes in the underlying stock's performance.