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

United Utilities reports results next Friday (28 Sept)

• The chart shows the price movement last time United Utilities reported (25 May).
• The shares opened 12p lower before recovering a little bit and ending the day -8.8p
• Full-year profit declined 2.4%, though overall revenue increased thanks to regulatory changes
• United Utilities will issue a Trading Statement next Friday (28 Sept)
• Recent share price range: September lows 679p; September highs 744p. Currently 686p (at time of writing).

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Trading United Utilities – An Example

Let’s say you think that United Utilities results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of United Utilities using CFDs, at the current price of 686p. To do this, you need £2,000.

For the purpose of this example, let’s assume United Utilities reports strong results and the shares rise 5%. Your profit would be £500, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss 3% below the current price. United Utilities results miss, it falls 3% and hits your stop-loss. Your loss would be £300.

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