Aston Martin
Is this an opportunity to take a position ahead of the results?
Aston Martin reports results on Thurs, 14 November
- The chart shows the price movement since Aston Martin IPOd on 4 Oct.
- Shares -12.8% from 2018 highs; +17.65% from 2018 lows.
- Recent share price range: Oct highs 1914.9p; Oct low 1364.9p.
- Currently 1618p (at time of writing).
- Aston Martin publishes Q3 results on Thurs, 15 Nov.
- This would be the first time the carmaker reports results to the financial markets.
- Could the shares react strongly to the results?
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Aston Martin – An Example
Let’s say you think that Aston Martin results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Aston Martin using CFDs, at the current price of 1618p. To do this, you need £2,000.
For the purpose of this example, let’s assume Aston Martin reports strong results and the shares rise 10%. Your profit would be £1,000, 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. Aston Martin 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.