In today’s Super Seasonals: Trade of the Week, we will focus on the Healthcare sector, as the sector tends to have the most opportunities versus other sectors, based on a clearly defined search filter criteria that I use.
There were a few good choices to look at, and I chose DexCom, Inc (DXCM) for this example.
DexCom, Inc. is a medical device company, which engages in the design, development, and commercialization of glucose monitoring systems for ambulatory use by people with diabetes.
Below is the seasonal pattern that the software uncovered over the past 2 decades…
Over the past 5 years, the Average Move Up during this 1.5 month trading period is +12.32%.
Over the past 10 years, the ‘median’ High Point is +12.21%.
10-year Backtest if $1,000 was invested to buy/sell shares during the seasonal time period…
105% Annualized Return.
As you likely know, there are literally dozens of solid ways to approach trading DexCom, Inc (DXCM) with a bullish bias.
The decision of how to best invest in the stock or trade the options is an individualized decision, unfortunately there is no one best way. Keep in mind that seasonality is about probabilities, not certainties.
Please remember to fully understand the risk before trading anything.
It’s recommended to do your own research and consider consulting with a financial advisor before investing in any stock or options trade.
To learn more about seasonal information on other solid opportunities, click here SuperSeasonals.
Trade Smart,
Chad Shirley
