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

InterContinental Hotels reports results on Friday (19th Oct)

• The chart shows the price movement last time InterContinental Hotels reported: half-year results, 7 Aug.
• Results were in-line with expectations, but investors noted caution about the hotel industry’s second-half prospects.
• H1 pre-tax profits fell 15%, but revenue per room increased 3.7%, while dividend was improved by 10%.
• Shares opened 15p higher (+0.3%) but fell as low as -160p (-3.4%) through the session, closing the day -142p (-3%); daily range 175p (3.7%).
• Shares -16.6% from 2018 highs; +1.8% from 2018 lows; +11.2% year-to-date.
• Recent share price range: Oct lows 4,137p; Oct highs 4,820p. Currently 4,188p (at time of writing).
• InterContinental Hotels issues a Q3 Trading Update on Friday (19th Oct).
• Will we see another big move?

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Trading InterContinental Hotels – An Example

Let’s say you think that InterContinental Hotels results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of InterContinental Hotels using CFDs, at the current price of 4,188p. To do this, you need £2,000.

For the purpose of this example, let’s assume InterContinental Hotels 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. InterContinental Hotels 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.