Dexcom designs and commercializes continuous glucose monitoring (CGM) systems for diabetic patients. It is evolving its CGM systems to provide integration with insulin pumps from Insulet and Tandem for automatic insulin delivery. Dexcom appeared in several of my custom stock screeners including my recently developed Free Cash Flow (FCF) Growers stock screener. As shown below, Dexcom passed all 17 of my screener criteria including the fact that the average target price of the 26 analysts currently covering the company is +34.8% above today's stock purchase price.
As detailed below, a potential return-on-investment result is +1.7%
absolute return (equivalent to +44.8% annualized return-on-investment over the next 14 days) if the stock is assigned on the November 12th, 2025 options expiration date.
Dexcom Inc. (DXCM) -- New Covered Calls Position
The simultaneous buy/write transaction today was as follows:
11/28/2025 Bought 200 Dexcom Inc. shares @ $62.54
11/28/2025 Sold 2 DXCM 12/12/2025 $60.00 Call options @ $3.56 per share
Note: the Implied Volatility of the Calls was 40.6 when this transaction was executed. As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 17.0.
A possible overall performance result (including commissions) for this Dexcom Covered Calls position if assigned on the options expiration date is as follows:
Covered Calls Cost Basis: $11,797.34
= ($62.54 - $3.56) * 200 shares + $1.34 commission
Net Profit Components:
(a) Options Income: +$710.66
= ($3.56 * 200 shares) - $1.34 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Dexcom shares assigned at $60.00 strike price at options expiration): -$508.00
+($60.00 - $62.54) * 200 shares
