Stagecoach
Is this an opportunity to take a position ahead of the results?
Stagecoach publishes a Trading Update on Weds, 3 April
- Last time Stagecoach reported: Half year Results, 5 Dec.
- The shares posted a daily range of 27.3p or 17.8%
- Shares -8% from 2019 highs; +20% from 2019 lows; +17% year-to-date.
- Currently 155p (at time of writing).
- Could we see another big share price move on Wednesday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Stagecoach – An Example
Let’s say you think that Stagecoach results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Stagecoach using CFDs, at the current price of 155p. To do this, you need £2,000.
For the purpose of this example, let’s assume Stagecoach 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. Stagecoach 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.