GPT – Income Play

GPT now trades on a forward yield of 4.8% with distribution per unit in FY17 of $0.24

Owning GPT at $5.00 and selling long dated covered call options into March 17 at the $5.25 strike, creates $0.15 in premium. Add in the  December dividend of $0.12 and total cash flow equals $0.27. If exercised,  an additional 5% capital gain or $0.25 on top of the $0.27 takes that total return to $0.52 or 10% for 6 months exposure.

You're not a member!  Trial today!


Author: Leon Hinde

Leon has been working in the financial services industry for 18 years in management and advisory roles. Leon has extensive experience in general advice and dealings involving securities and derivative financial products.

PS 146 Securities & Derivatives, ADA 1 & 2 accreditation, Responsible Manager Certificate. Leon is authorised to provide financial product advice and deal with respect to the following financial products:

· Deposit Products
· Securities
· Derivatives
· Interest in managed investment schemes; and
· Government debentures, bonds and stocks