Scotts Miracle Gro (SMG) Slightly Higher Yesterday And Showing Bullish Technicals With Neutral 3 STARs S&P Rating

Posted: Thursday, November 05, 2009 8:35 AM EDT

Scotts Miracle Gro (NYSE: SMG) closed yesterday at $42.05. So far the stock has hit a 52-week low of $23.64 and 52-week high of $44.25. Scotts Miracle Gro stock has been showing support around 40.98 and resistance in the 43.58 range. Technical indicators for the stock are Bullish and S&P gives SMG a neutral 3 STAR (out of 5) hold rating. SMG appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 40 covered call (SMG AH) for a net debit in the $38.35 area. That is also the break even stock price for this trade. This covered call has a 72 day duration, provides 8.80% downside protection and a 4.30% assigned return rate for a 21.81% annualized return rate (comparison purposes only). Scotts Miracle Gro has a current annual dividend yield of 1.22%. [THA-Seven Summits Research]

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