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

BHP Billiton reports results on Wednesday (17th Oct)

• The chart shows the price movement last time BHP Billiton reported: full-year results, 21 Aug.
• Opened 12.2p lower (-0.7%), fell as low as -44p (-2.7%), closed -10.2p (+0.6%); daily range 33.8p (2.1%).
• Shares fell after the company sounded a note of caution on the potential impact of trade tensions. (Source: DowJones)
• UBS (9 Oct): BHP Billiton could be soon announcing buybacks and dividends after receiving payment for US shale assets it sold to BP.
• Citi (9 Oct): Miners like BHP Billiton are still upgrading earnings expectations, with the sector seeing attractive valuation multiples.
• Shares -12.6% from 2018 highs; +16.9% from 2018 lows; +3.9% year-to-date.
• Recent share price range: Oct lows 1,527p; Oct highs 1,709p. Currently 1,578p (at time of writing).
• BHP Billiton issues a Q2 Production Report on Wednesday (17 Oct).
• Will we see another big move?

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Trading BHP Billiton – An Example

Let’s say you think that BHP Billiton results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of BHP Billiton using CFDs, at the current price of 1,578p. To do this, you need £2,000.

For the purpose of this example, let’s assume BHP Billiton 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 8% below the current price. BHP Billiton results miss, it falls 8% and hits your stop-loss. Your loss would be £800.

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