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 Aon plc, looking at the dividend history chart for AON 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 0.8% annualized dividend yield.
Below is a chart showing AON's trailing twelve month trading history, with the $370 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 November covered call at the $370 strike gives good reward for the risk of having given away the upside beyond $370. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Aon plc (considering the last 250 trading day closing values as well as today's price of $371.08) to be 21%. For other call options contract ideas at the various different available expirations, visit the AON Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Wednesday, the put volume among S&P 500 components was 753,765 contracts, with call volume at 1.74M, for a put:call ratio of 0.43 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.