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

Merlin Entertainments reports results on Tuesday (16th Oct)

• The chart shows the price movement last time Merlin Entertainments reported: H1 Results, 2 Aug.
• Opened 4.1p lower (-1%), trading as high as +10.5p (+2.7%), fell as low as -18.5p (-4.7%), closed -14.2p (-3.6%); daily range 29p (7.4%).
• Trading was better than expected despite a seasonably quiet H1 period.
• Shares -9.72% from 2018 highs; +18.35% from 2018 lows; +3.4% year-to-date.
• Recent share price range: Oct lows 369p; Oct highs 407p. Currently 375p (at time of writing).
• Merlin Entertainments issues a trading update on Tuesday (16 Oct).
• Will we see another big move?

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Trading Merlin Entertainments – An Example

Let’s say you think that Merlin Entertainments results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Merlin Entertainments using CFDs, at the current price of 375p. To do this, you need £2,000.

For the purpose of this example, let’s assume Merlin Entertainments reports strong results and the shares rise 10%. Your profit would be £1,000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss 7% below the current price. Merlin Entertainments results miss, it falls 7% and hits your stop-loss. Your loss would be £700.

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