A company called DexCom makes devices that help people check their blood sugar levels. This is important because some people have a health problem that causes their blood sugar to be too high or too low. The article talks about how people are buying and selling parts of this company, which are called options. Some experts think the company will do well in the future and give it a good rating. People can use special tools and information to help them decide when to buy or sell these parts of the company. Read from source...
1. The title is misleading and sensationalist: "Behind the Scenes" implies that there are some hidden or exclusive information about the company, which is not true for this article. It would be more accurate to say something like "DexCom's Options Trends Explained".
2. The introduction is too long and contains unnecessary details: The first three paragraphs could be summarized in one sentence: "This article aims to explain the options trends of DexCom, a company that develops and manufactures continuous glucose monitoring systems."
3. The RSI indicators section is irrelevant and confusing: RSI is a technical analysis tool used to measure overbought and oversold conditions in the market, but it has nothing to do with DexCom's options trends or performance. It seems like an attempt to fill up space and impress readers who are not familiar with options trading.
4. The expert opinions section is unbalanced and incomplete: The article only mentions one analyst from Raymond James who has a strong buy rating on the stock, but does not provide any other sources or perspectives. It also fails to mention any recent earnings reports or guidance that could affect the options trends of DexCom.
5. The trading options section is promotional and self-serving: The article ends with a blatant advertisement for Benzinga Pro, which offers real-time alerts on options trades for DexCom. This creates a conflict of interest and undermines the credibility of the article as an objective and informative source.
Possible recommendations are:
- Buy DXCM calls at a strike price close to the current price, expiring in one month or less, with a target profit of 10% to 20%. This strategy aims to benefit from a continued increase in the stock price and the time value of the options. The risk is limited by the premium paid for the calls and the breakeven point, which is the strike price plus the premium.
- Sell DXCM puts at a strike price above the current price, expiring in one month or less, with a target profit of 10% to 20%. This strategy aims to benefit from a continued increase in the stock price and the time value of the options. The risk is limited by the premium received for the puts and the breakeven point, which is the strike price minus the premium.
- Buy DXCM shares at the current market price and sell covered calls with a strike price close to the current price, expiring in one month or less, with a target profit of 5% to 10%. This strategy aims to benefit from a continued increase in the stock price and generate income from the call premium. The risk is limited by the difference between the share price and the strike price of the calls, plus the cost of the shares.
- Sell DXCM short at the current market price and buy covered puts with a strike price below the current price, expiring in one month or less, with a target profit of 5% to 10%. This strategy aims to benefit from a decrease in the stock price and generate income from the put premium. The risk is limited by the difference between the share price and the strike price of the puts, minus the proceeds from the short sale of the shares.
- Buy DXCM vertical spreads with different strike prices, either below or above the current price, expiring in one month or less, with a target profit of 5% to 10%. This strategy aims to benefit from a narrow range of stock price movements and balance the risk and reward. The risk is limited by the difference between the strike prices of the spreads, plus the premium paid or received for the options.
- Sell DXCM vertical spreads with different strike prices, either below or above the current price, expiring in one month or less, with a target profit of 5% to 10%. This strategy aims to benefit from a wide range of stock price movements and balance the risk and reward. The risk is limited by the difference between the strike prices of the spreads, minus the premium paid or received for the options.
- Buy DXCM straddles with a strike price close to the current price, expiring in one month or less, with