Paragon
Is this an opportunity to take a position ahead of the results?
Paragon publishes a Q1 Trading Update on Mon, 28 Jan.
- Last time Paragon reported: FY Results, 21 Nov.
- The shares closed +8.2% for a daily range of 36.8p or 8.9%.
- Shares -1.7% from 2018 highs; +10.3% from 2018 lows; +7.7% year-to-date.
- Currently 415p (at time of writing).
- Will we see another big share price move on Monday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Paragon – An Example
Let’s say you think that Paragon results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Paragon using CFDs, at the current price of 415p. To do this, you need £2,000.
For the purpose of this example, let’s assume Paragon 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 position, and place a stop-loss 5% below the current price. Paragon 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.