Westfield has a take-over offer on the table from European giant Unibail-Rodamco for the equivalent of $10.00 per share.
A combination of a weak US dollar and a fall in Unibail’s share price has seen WFD trade below the initial offer. With the stock finding support at $8.50 we feel there’s a low risk opportunity to buy WFD and sell covered calls.
The strategy generates 10% annualised cash flow and allows for a moderate increase in capital growth.
WFD goes ex-div $0.165 on the 11th August .
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
· Interest in managed investment schemes; and
· Government debentures, bonds and stocks