Will Sophos continue falling, or will it rise again back to yesterday’s 466p price level?

• Sophos shares have fallen over 25% today after disappointing results.
• H1 billings were very modest, with growth missing market expectations.
• Currently trading at 339p (at time of writing).
• Shares -49.7% from 2018 highs; +20.6% from 2018 lows; -38.9% year-to-date.
• Recent share price range: Nov lows 281p; Nov highs 499p.
• Can the stock recover to yesterday’s highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Sophos – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 464p. You decide to buy exposure to £10,000 worth of Sophos using a CFD, at the current price of 339p. To do this, you need £2,000.

Let’s assume Sophos recovers back to 466p (+36.8%). Your profit would be £3680, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Sophos falls 7% and hits your stop-loss. Your loss would be £700.

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