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

Lloyds reports results on Thursday, 25 Oct

• The chart shows the price movement last time Lloyds reported: H1 Results, 1 Aug.
• Shares opened +1.2p (+1.9%), rising as high as +1.6p (+2.5%) and fell as low as +0.7p (+1.2%).
• The shares closed +1.0p (+1.7%) for a daily range of 0.9p or 1.4%.
• Lloyds said it saw no Brexit effect on bad loans and raised its margin and capital guidance; PPI behind it?
• Recent share price range: Oct lows 56p; Sept highs 62p. Currently 56.65p (at time of writing).
• Lloyds publishes Q3 Results on Thursday, 25 Oct
• Will we see another big move?

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Trading Lloyds – An Example

Let’s say you think that Lloyds results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Lloyds using CFDs, at the current price of 56.65p. To do this, you need £2,000.

For the purpose of this example, let’s assume Lloyds reports strong results and the shares rise 10%. Your profit would be £1000, from your initial investment of £2,000.

Conversely, let’s assume you open the position, and place a stop-loss 5% below the current price. Lloyds 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.