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

Barratt Developments reports results on Wednesday (17th Oct)

• The chart shows the price movement last time Barratt Developments reported: full-year results, 5 Sept.
• Opened 1.6p lower (-0.3%), fell as low as -5.8p (-1.1%), closed +9.6p (+1.8%); daily range 15.4p (2.9%).
• UK Index Housebuilders have been struggling to overcome investor concerns over Brexit uncertainty even after Barratt reported upbeat full-year results.
• Weaker growth in Rightmove House Prices in October (+0.9% YoY) could also weigh on the shares.
• Shares -22.34% from 2018 highs; +7.24% from 2018 lows; -21.9% year-to-date.
• Recent share price range: Oct lows 488p; Oct highs 567p. Currently 505p (at time of writing).
• Barratt issues a trading update on Wednesday (17 Oct).
• Will we see another big move?

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Trading Barratt Developments – An Example

Let’s say you think that Barratt Developments results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Barratt Developments using CFDs, at the current price of 505p. To do this, you need £2,000.

For the purpose of this example, let’s assume Barratt Developments 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 5% below the current price. Barratt Developments 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.