Djerriwarrh Investments said persistently low stock market volatility is reducing the income it generates from options strategies tied to shares of major Australian companies, as it reported a $24.1 million half year profit.

The $830 million listed investment company invests in large cap Australian shares where there is an active options market as it seeks to generate franked income that is "significantly higher" than that available from the S&P/ASX 200 by investing in dividend yielding stocks and through options strategies.