Interesting DXCM Put And Call Options For January 2026

StockOptionsChannel highlights two option strategies on DexCom (DXCM, $67.57): selling the $61 put (bid $1.35) would obligate purchase at $61 with an effective cost basis of $59.65—about a 10% discount to the stock—with a current modeled 76% probability of expiring worthless and a premium yield of 2.21% (16.16% annualized, “YieldBoost”). Alternatively, buying the stock and selling the $79 covered call (bid $1.00) would cap sale at $79 but generate an 18.40% total return if called at the January 2026 expiration; that call has a 72% chance of expiring worthless and offers a 1.48% premium boost (10.80% annualized), at the risk of leaving significant upside on the table. Implied volatilities are elevated (puts 58%, calls 55%) versus trailing 12‑month realized volatility of 45%, and the provider will publish time-tracked odds and contract charts on its site.

Analysis

The article presents two options strategies on DexCom (DXCM, $67.57): selling the $61 put (bid $1.35) obligates purchase at $61 with an effective cost basis of $59.65 and is modeled to have a 76% chance of expiring worthless, producing a 2.21% return on cash committed (16.16% annualized YieldBoost) if it does. That $61 strike is roughly a 10% discount to the current price and the put's implied volatility is 58%, above the stock's 45% trailing 12‑month realized volatility.

The covered call alternative is buying shares at $67.57 and selling the $79 call (bid $1.00), which caps proceeds at $79 and yields an 18.40% total return if called at the January 2026 expiration; the call is about 17% out-of-the-money and has a 72% modeled probability of expiring worthless, offering a 1.48% premium boost (10.80% annualized). Implied volatility on the call is 55%, indicating elevated option premiums relative to realized volatility and exposing sellers to implied-volatility contraction risk.

Both trade ideas are framed as yield-enhancement tactics rather than pure directional bets: the put seller faces assignment risk (~24% model probability) and must fund purchase at $61, while the covered-call seller risks leaving significant upside uncollected. Stock Options Channel will track and publish evolving odds and contract histories, so changes in IV, stock price, or company events could materially alter the risk/return profile over the life of these long‑dated Jan 2026 contracts.

Key Decisions for Investors

• If willing to own DXCM at a lower basis, consider selling the $61 Jan 2026 put to collect $1.35 but size the position to accommodate the ~24% assignment probability and ensure you have cash or margin to purchase at $61,
• If already long DXCM and willing to cap upside, consider selling the $79 Jan 2026 covered call to pocket $1.00 for a 1.48% premium boost and 18.4% capped return, but be prepared to lose further upside if the stock rallies above $79,
• Given implied volatilities (55–58%) exceed trailing realized volatility (45%), treat premiums as relatively expensive—avoid buying long vega exposure now or use spread structures to reduce sensitivity to IV contraction,