Author's Craft

At first, it's important to mention that the story is narrated as if someone is telling it to you aloud. How does O. Henry achieve this effect? Basically he breaks grammar rules. There are a lot of eliptical sentences, like the opening one: "One dollar and eighty-seven cents". We get that information in the next sentence: "That was all". Although the second sentence at least has a verb, it's also technically not a complete sentence: the subject, "that," is unspecified, and only makes sense given the previous sentence. It's typical of the ways we tell stories when we speak. This style keeps listeners hanging on from one sentence to the next. It also prevents them from getting lost in overly long sentences. Since when you're listening to a story you can't go back and read a sentence again, it's important that you don't get lost.

Of course, as O. Henry is trying to capture that feel of telling a story orally, he also throws in plenty of addresses to his audience of listeners, as in, "Which is always a tremendous task, dear friends – a mammoth task". This further creates the feeling that he is talking directly to us. The narrator also take breaks from the action to "make a point." He speaks as if he's seen the world and understood it well – he's wise, in other words – and he wants to teach you some lessons about it.

As for EM and SD...

Repetition: It's interesting to notice the number three figures prominently throughout the story. Parts of the events, characters, and other elements all come in threes. Some examples include:

• Three characters (Della, Jim, Madame Sofronie) with three very valuable items (hair, watch, love)
• Three magi (Balthasar, Melchior, Gaspar) from three different kingdoms (Arabia, Persia, India) who offered three gifts (gold, frankincense, myrrh)
• Counting money three times
• Color grey mentioned three times
• Alliteration that comes in threes: "sobs, sniffles, smiles", "sudden serious sweetness",
  "wonderfully wise men".
• Allusion to the Queen of Sheba known for giving three gifts to King Solomon

Irony: One type of irony can be seen in this story, situational irony. By selling their most prized possessions to buy something for the other, they wind up selling that which they need to use the gifts the other has given.

Symbolism

• Biblical Imagery: Three wise men, Queen of Sheba, King Solomon. What do all three of these references have in common, besides being Biblical figures? Well, they're all royal, very rich Biblical figures. The magi are often said to be kings, and brought Jesus three very expensive gifts (gold, frankincense, and myrrh), while Sheba and Solomon were both powerful monarchs renowned for their wealth and splendor. The comparison of Jim and Della's possessions to those of Biblical figures helps bring out how precious those two items are to their owners; to Jim and Della they're treasures, which they give away. But that's not all the images of Solomon and Sheba do. By bringing them up, and by mentioning the magi, O. Henry creates a sharp contrast between their spectacular riches and the obvious poverty and Jim and Della.
  We have to wonder why O. Henry would do that. Because ultimately the story wants us to think about what it means to be truly rich. Where it really counts, Jim and Della are as rich as Solomon, the Queen of Sheba, and the magi, because they love each other. Just like the magi and Solomon (both figures famous for their wisdom), they're also wise, as the last paragraph tells us.
  The Biblical imagery also beefs up the story's credibility as a parable. By invoking the Bible at moments, O. Henry makes "Gift of the Magi" feel more morally weighty.
• Color Imagery: The grey and colorless setting directly contrasts the Christmas time of year when everything should be sparkling and brightly colored in holiday decorations.