In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Scotts Miracle-Gro Co, looking at the dividend history chart for SMG below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3.9% annualized dividend yield.

Below is a chart showing SMG's trailing twelve month trading history, with the $95 strike highlighted in red:

The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2027 covered call at the $95 strike gives good reward for the risk of having given away the upside beyond $95. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Scotts Miracle-Gro Co (considering the last 251 trading day closing values as well as today's price of $67.05) to be 43%. For other call options contract ideas at the various different available expirations, visit the SMG Stock Options page of StockOptionsChannel.com.

In mid-afternoon trading on Tuesday, the put volume among S&P 500 components was 903,272 contracts, with call volume at 1.98M, for a put:call ratio of 0.46 so far for the day. Compared to the long-term median put:call ratio of .65, that represents very high call volume relative to puts; in other words, buyers are preferring calls in options trading so far today. Find out which 15 call and put options traders are talking about today.

Top YieldBoost Calls of the S&P 500 "

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.