Investors with a lot of money to spend have taken a bearish stance on DexCom DXCM.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with DXCM, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 16 uncommon options trades for DexCom.
This isn't normal.
The overall sentiment of these big-money traders is split between 31% bullish and 68%, bearish.
Out of all of the special options we uncovered, 6 are puts, for a total amount of $667,197, and 10 are calls, for a total amount of $495,492.
Expected Price Movements
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $85.0 to $110.0 for DexCom over the last 3 months.
Volume & Open Interest Development
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for DexCom's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of DexCom's whale trades within a strike price range from $85.0 to $110.0 in the last 30 days.
DexCom 30-Day Option Volume & Interest Snapshot
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| DXCM | PUT | TRADE | BULLISH | 11/17/23 | $90.00 | $252.0K | 5.3K | 2.3K |
| DXCM | PUT | SWEEP | BEARISH | 11/17/23 | $90.00 | $167.0K | 5.3K | 1.6K |
| DXCM | CALL | TRADE | BEARISH | 01/19/24 | $110.00 | $118.2K | 715 | 0 |
| DXCM | PUT | SWEEP | BULLISH | 11/17/23 | $90.00 | $100.2K | 5.3K | 5.4K |
| DXCM | CALL | SWEEP | BULLISH | 11/17/23 | $100.00 | $80.2K | 5.0K | 85 |
About DexCom
Dexcom designs and commercializes continuous glucose monitoring systems for diabetic patients. CGM systems serve as an alternative to the traditional blood glucose meter process, and the company is evolving its CGM systems to provide integration with insulin pumps from Insulet and Tandem for automatic insulin delivery.
After a thorough review of the options trading surrounding DexCom, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Present Market Standing of DexCom
- With a volume of 2,258,648, the price of DXCM is up 0.59% at $93.31.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 91 days.
What Analysts Are Saying About DexCom
A total of 3 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $103.66666666666667.
- An analyst from Leerink Partners downgraded its action to Outperform with a price target of $110.
- Maintaining their stance, an analyst from JP Morgan continues to hold a Overweight rating for DexCom, targeting a price of $100.
- Maintaining their stance, an analyst from Morgan Stanley continues to hold a Equal-Weight rating for DexCom, targeting a price of $101.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest DexCom options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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