Is this an opportunity to take a position ahead of the release?

Ocado is due to report results this Tuesday, 18th September

• The chart above shows the price movements last time Ocado reported.
• Last time Ocado issued results in August, the price increased from 951p to 1,109p.
• Ocado will report half-year results on Tuesday, 18th September
• Recent share price: 1 month lows were at 899p. 1 month high at 1,129p. Currently at 929.9p (at time of writing).

Click to enlarge

Trading Ocado – An Example

Let’s say you think that Ocado results are likely to be good, and the price is likely to rise. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 929.9p. To do this, you need £2,000.

For the purpose of this example, let’s assume Ocado reports strong results and the share price rises by 15%. Your profit would be £1,500, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Ocado results miss, it falls 5% and hits your stop-loss. Your loss would be £500.

This is provided for information purposes only. It should not be taken as a recommendation.