Will CYBG continue falling, or will it rise again back to 278p?

• The price has fallen over 25% in a week after reporting falling net interest margins in latest results.
• It has been as high as 278p in November. It is now at 197p (at the time of writing).
• 23 Nov: Citi says that CYBG offers an attractive chance to invest in banks
• Shares -46.1% from 2018 highs; now trading near 2018 lows; -42% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading CYBG – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards November highs of 278p again. You decide to buy exposure to £10,000 worth of CYBG using a CFD, at the current price of 197p. To do this, you need £2000.

Let’s assume CYBG recovers back to 278p (+41.1%). Your profit would be £4110, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. CYBG falls 9% and hits your stop-loss. Your loss would be £900.

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