Ocado is due to issue a Trading update on Thursday, 13 Dec

• The chart above shows the price movements last time Ocado reported (Q3 Trading Update, 18 Sept).
• Q3 retail revenues rose +11.5% YoY, with good performances from new warehouse facilities.
• The shares opened +3.6p (+0.4%), traded as high as +47.8p (+5.2%) and went as low as -3.8p (-0.4%).
• The shares closed +7.2p (+0.8%), for a daily trading range of 51.6p or 5.7%.
• Shares -32.1% from 2018 highs, +102.7% from 2018 lows, +101.2% year-to-date.
• Currently trading at 799p (at time of writing).
• Ocado issues a Q4 Trading Update on Thursday 13 Dec. Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Ocado – An Example

Let’s say you think that Ocado results are likely to be good, and the price is likely to rise. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 799p. To do this, you need £2,000.

For the purpose of this example, let’s assume Ocado reports strong results and the share price rises by 10%. Your profit would be £1,000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Ocado results miss, it falls 5% and hits your stop-loss. Your loss would be £500.

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