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

Whitbread reports results on Tuesday (23 Oct)

• The chart shows the price movement last time Whitbread reported: Q1 Trading Update, 27 June.
• Shares opened 21p lower (-0.5%; low of day) but rose as high as +161p (-4.1%),
• The shares closed +134p (+3.4%) for a daily range of 182p or 4.7%.
• The shares welcomed progress on Costa demerger which was subsequently sold to Coca Cola for £3.9bn
• Shares -5.5% from 2018 highs; +25.8% from 2018 lows; +12.9% year-to-date.
• Recent share price range: Oct lows 4482p; Oct highs 4655p. Currently 4514p (at time of writing).
• Whitbread publishes Interim Results tomorrow (Tues 23 Oct).
• Will we see another big move?

Click to enlarge

Trading Whitbread – An Example

Let’s say you think that Whitbread results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Whitbread using CFDs, at the current price of 4520p. To do this, you need £2,000.

For the purpose of this example, let’s assume Whitbread reports strong results and the shares rise 5%. Your profit would be £500, from your initial investment of £2,000.

Conversely, let’s assume you open the position, and place a stop-loss 3% below the current price. Whitbread results miss, it falls 3% and hits your stop-loss. Your loss would be £300.

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