My Trade Details:
- DXCM Dec 16 2022 120 Call under $3
- Stop: Close below $109
- Target 1: $122
- Target 2: $130
DXCM – Your Bullseye Pick Of The Week - Bullseye Pick of the Week
The options were up over 100%
Here’s how I traded it:
Here was my reasoning:
The stock I am most interested in right now is – DXCM.
Bull or bear market, this stock has been on a serious uptrend and I don’t think that will quit anytime soon.
Right now, DXCM is trading above the 200-day, 13-day, and 5-day moving averages and above the mid-point of the Keltner channel.
Incredibly strong action regardless of how the market has been trading lately. I am betting this will continue.
DXCM rallied nearly 20% a month ago after posting strong earnings creating what I call a “flag pole” and has been building the flag since then. I think it is about time to break out of this and hopefully move higher again.
If I am right, I want to look at $122 as my first target, which would be just under the recent level it stalled at after the earnings report. After that, I think the $130 level makes sense, which is just under the high from the previous rally in early April.
If I am wrong, I want to use a stop loss under $109, which would be below the low prices we saw over the last couple of weeks.
I only want to start with a half-sized position so I have room to add to this around the $114 level, if it gets there.