British American Tobacco reports a Trading Update on Weds, 12 December

• The chart shows the price movement last time British American Tobacco reported (Q3 Trading Update, 16 Oct).
• The shares opened -17p (-0.5%), touched as high as +2.5p (+0.1%) and went as low as -160p (-4.8%).
• The shares closed -154.5p (-4.6%), for a daily trading range of 162.5p or 4.9%.
• Tobacco manufacturer cut its expectations for revenue from vapor products.
• Shares -48% from 2018 highs, now trading at 2018 lows, -45.6% year-to-date.
• Currently trading at 2728p (at time of writing).
• British American Tobacco reports a Trading Update on Wednesday 12 Dec. Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading British American Tobacco – An Example

Let’s say you think that British American Tobacco results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of British American Tobacco using CFDs, at the current price of 2728p. To do this, you need £2,000.

For the purpose of this example, let’s assume British American Tobacco 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 above position, and place a stop-loss 3% below the current price. British American Tobacco 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.