• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock DexCom Stock Rises From the Ashes: A Breakout You Can’t Ignore
Stock

DexCom Stock Rises From the Ashes: A Breakout You Can’t Ignore

by January 17, 2025
by January 17, 2025 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

As advancements in medical technology continue to shape the healthcare landscape, DexCom, Inc. (DXCM) stands out with its innovative continuous glucose monitoring solutions. Recent price action suggests that DXCM’s stock price has triggered a potentially new bullish run. In this article, I will examine the technical and fundamental factors behind this positive outlook and outline a risk-defined options strategy — all identified via the OptionsPlay Strategy Center within StockCharts.com.

After consolidating between $75 and $80 over the past two months, DXCM’s stock price recently broke out of this trading range with impressive relative strength.

Range Breakout. The stock’s breakout above $80 marks a decisive breakout from its consolidation zone.Outperformance. The breakout has been coupled with outperformance to the S&P 500.Upside Target. Given the breakout, there is potential for DXCM’s stock price to fill the gap up to the $107.50 level.

FIGURE 1. DAILY CHART OF DXCM STOCK. The stock price traded between $75 and $80 since the end of November. DXCM recently broke out of its consolidation zone and traded above $80.Chart source: StockCharts.com. For educational purposes.

Beyond the charts, DXCM’s fundamentals support its premium valuation:

Premium but justified. While trading at 39x forward earnings, DXCM’s superior growth expectations and higher net margins than peers suggest that this valuation is justified.Potential for substantial upside. Robust demand in the continuous glucose monitoring market and DexCom’s leadership position the company to capitalize on ongoing trends. The combination of strong growth prospects and healthy margins provides the potential for further appreciation.

Options Strategy

Based on this bullish thesis, the OptionsPlay Strategy Center highlights a bull put spread.

Sell: February 28, 2025, $84 Put at $5.40Buy: February 28, 2025, $77 Put at $2.42Net Credit: $2.98 per share (or $298 total per contract, since each contract represents 100 shares)

FIGURE 2. DXCM BULL PUT SPREAD RISK CURVE.

Trade Details

Maximum Potential Reward: $298Maximum Potential Risk: $402Breakeven Point: $81.02Probability of Profit: 58.58%

This strategy benefits from time decay and a bullish outlook, providing limited risk and a defined reward. At expiration, profits are earned if DXCM’s stock price remains above the breakeven level.

Unlock Real-Time Trade Ideas

This bullish trade in DXCM was identified using the OptionsPlay Strategy Center within StockCharts.com. The platform’s Bullish Outperform scan (see below) automatically flagged DXCM as the best candidate for selling a Bull Put Spread out of the many stocks currently outperforming the market, then structured the optimal options trade — helping you save hours of research.

FIGURE 3. BULLISH OUTPERFORMANCE SCAN. DXCM was identified as a candidate for a bull put spread.

By subscribing to the OptionsPlay Strategy Center, you gain access to:

 Automated Market Scans. Quickly discover high-probability trading opportunities based on technical and fundamental signals.Optimal Trade Structuring. Receive tailored, real-time options strategies for your market outlook and risk tolerance.Time-Saving Insights. Make informed decisions faster, avoiding the time-consuming process of manual analysis.

Don’t miss out on your next high-conviction idea. Subscribe to the OptionsPlay Strategy Center today and unlock a streamlined approach to uncovering the best options trades—all within seconds, every single day. Let OptionsPlay be your strategic ally in navigating the markets efficiently and effectively.

You Might Also Like
  • The Halftime Show: Don’t Box the Invisible Man — EPS Reports
  • 2022 Q4 Earnings Results: Market Becomes More Overvalued
  • You Gotta Love a Good Wedgie
  • Bears Are Waking Up to the Fact They’ve Missed Out; Here’s What’s Next
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Vanguard fined more than $100 million by SEC over violations involving target date retirement funds
next post
Capital One outage drags into Friday afternoon, leaving some customers without deposit access

You may also like

Week Ahead: Upsides For NIFTY May Stay Capped; Sectoral Landscape...

April 28, 2024

Macro Model Gives Mixed Signals as NFLX LIGHTS UP!

January 25, 2024

Evaluating Risk is a Key Difference Between Successful and Unsuccessful...

February 25, 2024

The Hoax of Modern Finance – Part 1: Introduction

November 29, 2023

DP Trading Room: These Banks are Bullish Going Into Earnings

July 8, 2024

The Long-Term Bull Case for Bitcoin

August 30, 2023

Plenty of Strength in HY Bond A-D Line

December 22, 2023

MEM TV: Breakouts and Downtrend Reversals in Key Areas

May 20, 2023

A Glimpse at the Next 6 Months in the Markets

July 1, 2023

Signs of Top in Rates As Fed Says NO CHANGE

November 1, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025
    • NBA star Russell Westbrook launches AI-enabled funeral planning startup

      May 7, 2025
    • Use This Multi-Timeframe MACD Signal for Precision Trades

      May 7, 2025
    • Judge allows lawsuit over Burger King’s Whopper ads to move forward

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,185 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,064)
    • Investing (538)
    • Stock (2,529)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against...

      May 7, 2025
    • NBA star Russell Westbrook launches AI-enabled funeral planning startup

      May 7, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,064)
    • Investing (538)
    • Stock (2,529)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    What Can We Expect from Stagflation?

    April 27, 2023

    Check Out This Economic Indicator

    April 21, 2023

    DISCOVER the Top Consumer Discretionary Stocks

    October 22, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here