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

Unilever reports results on Thursday (18th Oct)

• The chart shows the price movement last time Unilever reported: half-year results, 19 July.
• Opened 11.5p lower (-0.3%), falling as low as -50p (-1.2%), but was as high as +138p (+3.3%) and closed +127.5p (+3%); daily range 188.5p (4.5%).
• Shares -11.1% from 2018 highs; +8.8% from 2018 lows; +2.1% year-to-date.
• Recent share price range: Oct lows 3,924p; Oct highs 4,250p. Currently 4,038p (at time of writing).
• H1 results were weak, with strikes in Brazil and price declines impacting growth.
• However, Unilver backed earlier full-year guidance and noted expectations of strong cash flow and improved operating margin.
• Unilever recently withdrew proposal to stop its dual Amsterdam/London listing under pressure from UK shareholders. This will keep Unilever as part of UK 100 .
• Unilever issues Q3 Results on Thursday (18 Oct).
• Will we see another big move?

Click to enlarge

Trading Unilever – An Example

Let’s say you think that Unilever results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Unilever using CFDs, at the current price of 4,038p. To do this, you need £2,000.

For the purpose of this example, let’s assume Unilever reports strong results and the shares rise 8%. Your profit would be £800, 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. Unilever 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.