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

BP reports results on Tuesday, 30 Oct

• The chart shows the price movement last time BP reported: Q2 Results, 31 Jul.
• The shares opened -5.2p (-0.9%; low of the day) and rose as high as +9.4p (+1.7%).
• The shares closed +7.8p (-1.4%) for a daily range of 14.6p or 2.6%.
• Recent share price range: Oct lows 525p; Oct highs 603p. Currently 533p (at time of writing).
• Shares -11.7% from 2018 highs; +17.8% from 2018 lows; +2.0% year-to-date
• BP publishes Q3 Results on Tuesday, 30 Oct
• Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading BP – An Example

Let’s say you think that BP results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of BP  using CFDs, at the current price of 533p. To do this, you need £2,000.

For the purpose of this example, let’s assume BP reports strong results and the shares rise 6%. Your profit would be £600, 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. BP 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.