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Scotts Miracle-Gro Co (Symbol: SMG) is offering shareholders the option to boost their income beyond its 4.7% annualized dividend yield by selling a March 2026 covered call at the $62.50 strike price. The current bid is $2.50, which annualizes to an additional 14.4%, resulting in a total potential return of 19.1% if the stock is not called away. Shareholders would need the stock to rise by 10.5% for the option to be exercised, yielding a 14.9% return if called.
The stock’s trailing twelve-month volatility is calculated at 38%, with a current trading price of $56.48. On Friday, the S&P 500 components saw a put volume of 830,798 contracts and call volume of 1.74 million, resulting in a put-to-call ratio of 0.48, indicating a preference for calls in options trading.
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