Piper Jaffray analyst JP McKim noted to investors that the FDA website shows that Dexcom got 510K approval for an "integrated continuous glucose monitoring system for non-intensive diabetes management" called the Dexcom G6 Glucose Program Continuous Glucose Monitoring System on October 26. While he is unclear how the system is different from the currently marketed device, he notes the 501K application specifically states it is intended to replace finger stick testing for people who do not have a significant risk of hypoglycemia. McKim, who believes the company is moving beyond just providing the most accurate CGM chart into technology services, finds it interesting that the filing states the device "can be used alone or in conjunction with digitally connected devices or services," he tells investors. McKim expects to hear more about this 510K approval on the company's earnings call next week or at its analyst day in early December and thinks any positive update on the non-intensive diabetes population will be well received by investors. He keeps an Overweight rating on DexCom shares.

Pre-earnings options volume in DexCom is 11.4x normal with calls leading puts 11:2. Implied volatility suggests the market is anticipating a move near 5.8%, or $8.05, after results are released. Median move over the past eight quarters is 5.4%.