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

Rio Tinto reports results on Tuesday (16th Oct)

• The chart shows the price movement last time Rio Tinto reported: H1 results, 1 Aug.
• Opened 51.2p lower (-1.2%; highs of day), fell as low as -199p (-4.8%), closed -142p (-3.4%); daily range 148p (3.5%).
• 9 Oct: Goldman Sachs upgrades to Buy From Neutral
• Recently sold assets; proceeds to be used to boost share buybacks
• Shares -19.7% from 2018 highs; +5.4% from 2018 lows; -7.7% year-to-date.
• Recent share price range: Oct lows 3557p; Oct highs 3940p. Currently 3641p (at time of writing).
• Rio Tinto issues a Q3 Production Update on Tuesday (16 Oct).
• Will we see another big move?

Click to enlarge

Trading Rio Tinto – An Example

Let’s say you think that Rio Tinto results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Rio Tinto using CFDs, at the current price of 3641p. To do this, you need £2,000.

For the purpose of this example, let’s assume Rio Tinto 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. Rio Tinto 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.