A trading opportunity for you?

Will Ocado continue falling, or will it rise again back to 1,129p August highs?

• Ocado shares have fallen 11.6% in the past week to trade 795.5p (at time of writing)
• Shares -30.9% from 2018 highs; +106.2% from 2018 lows; +100.33% year-to-date
• UK retailers are all suffering from the fallout of Tesco’s disappointing results
• Source: Dow Jones, Bloomberg, Company News

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Trading Ocado – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 1,129p. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 795.5p. To do this, you need £2,000.

Let’s assume Ocado recovers back to 1,129p (+42%). Your profit would be £4,200, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Ocado falls 10% and hits your stop-loss. Your loss would be £1,000.

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