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 .