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

Next reports results tomorrow (25 Sept)

• The chart shows the price movement last time Next reported (1 August).
• The shares opened 336p lower before falling further to close the session 424p lower (-7.14%).
• Retail reported Q2 sales down 5.9% YoY.
• The results were better than Next’s own expectations.
• Next will issue a Half-year results tomorrow (25 Sept).
• Analysts are expecting Next to maintain its FY forecasts.
• Recent share price range: September lows 5,184p; September highs 5,610p. Currently 5,203p (at time of writing).

Click to enlarge

Trading Next – An Example

Let’s say you think that Next results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Next using CFDs, at the current price of 5,203p. To do this, you need £2,000.

For the purpose of this example, let’s assume Next reports strong results and the shares rise 8%. Your profit would be £800, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss 5% below the current price. Next 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.