Always important when discussing dividends is the fact that, 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 Radian Group, Inc., looking at the dividend history chart for RDN 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 0.1% annualized dividend yield.

RDN+Dividend+History+Chart

Below is a chart showing the trailing twelve month trading history for Radian Group, Inc., and highlighting in green where the $8 strike is located relative to that history:

Loading+chart++2013+TickerTech.com

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 2016 put at the $8 strike for the 6.1% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for Radian Group, Inc. (considering the last 252 trading day closing values as well as today's price of $13.15) to be 42%. For other put options contract ideas at the various different available expirations, visit the RDN Stock Options page of StockOptionsChannel.com.

null

If you liked this article you might like

Doubt Is OK; The Lay of the Land: Doug Kass' Views

Here Is One of My Best Stock Ideas, Doug Kass Explains

Ulta Beauty, Radian Group, AllianceBerstein Holdings: 'Mad Money' Lightning Round

Perils of Politics: Cramer's 'Mad Money' Recap (Monday 7/31/17)

All the Rallying Big Bank Stocks Look Very Risky, Doug Kass Says