IAG (owner of British Airways)
A trading opportunity for you?
Will BA-owner IAG continue falling, or will it recover to 475p? (+6.7%)
- Shares -22% from April highs; also -6.6% from recent highs?
- Now trades 445p (at time of writing).
- Can the stock recover to recent 475p highs?
- Shares -33.3% from 2019 highs; +0.9% from 2019 lows; -27.9% year-to-date.
- Shares down today on Lufthansa profits warning
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading BA-owner IAG – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards 475p. You decide to buy exposure to £10,000 worth of IAG using a CFD, at the current price of 445p. To do this, you need £2,000.
Let’s assume IAG recovers back to 475p (+6.7%). Your profit would be £670, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. IAG falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.