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

St James’s Place reports results on Tuesday (23 Oct)

• The chart shows the price movement last time St James’s Place reported: half-year results, 1 Aug.
• Results were disappointing, as pre-tax profit fell 52% YoY due to new accounting rules.
• However, funds under management increased 16% and the investment company raised its interim dividend by 20%.
• Shares opened 29p higher (+2.4%), which was the high of the day, and fell through the session as low as -69.5p (-5.8%), closing -40p (-3.3%); daily range 98.5p (8.2%).
• Shares -17.16% from 2018 highs; +2.5% from 2018 lows; -14.25% year-to-date.
• Recent share price range: Oct lows 1,034p; Oct highs 1,155p. Currently 1,051p (at time of writing).
• St James’s Place reports Q3 New Business on Tuesday (23rd Oct).
• Will we see another big move?

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Trading St James’s Place – An Example

Let’s say you think that St James’s Place results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of St James’s Place using CFDs, at the current price of 1,051p. To do this, you need £2,000.

For the purpose of this example, let’s assume St James’s Place 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 4% below the current price. St James’s Place results miss, it falls 4% and hits your stop-loss. Your loss would be £400.

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