Domino’s UK & IRL
Is this an opportunity to take a position ahead of the results?
Domino’s Pizza reports FY Results on Tuesday, 12 Mar
- Last time Domino’s Pizza reported: Q4 Trading Update, 29 Jan.
- The shares closed -8.7% for a daily range of 18.1p or 6.6%.
- Shares -17.8% from 2019 highs; +2.4% from 2019 lows; +0.75% year-to-date.
- Currently 234p (at time of writing).
- Could we see another big share price move on Tuesday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading Domino’s Pizza – An Example
Let’s say you think that Domino’s Pizza results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Domino’s Pizza using CFDs, at the current price of 234p. To do this, you need £2,000.
For the purpose of this example, let’s assume Domino’s Pizza 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 3% below the current price. Domino’s Pizza 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.