Will Sophos continue falling, or will it rise again back to yesterday’s 376p closing price?

• Sophos fallen as low as -27% today after a profits warnings.
• Now trades 277p (at time of writing).
• Shares -30.2% from 2019 highs; +1% from 2019 lows; -25.3% year-to-date.
• Can the stock recover to yesterday’s levels?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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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 376p. You decide to buy exposure to £10,000 worth of Sophos using a CFD, at the current price of 277p. To do this, you need £2,000.

Let’s assume Sophos recovers back to 376p (+35.7%). Your profit would be £3570, 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.