IAG (owner of British Airways)
Is this trend a good trading opportunity?
Will IAG turn, or will it continue rising towards highs of 566p (+16%)?
- Shares +11% from lows; Now trading 486p (at the time of writing).
- Will the positive momentum continue towards April highs of 566p (+16%)?
- Shares -27% from 2019 highs; +12.8% from 2019 lows; -21.2% year-to-date.
- Airlines benefiting from lower oil prices
- The shares pay a 9.7% dividend tomorrow
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading British Airways/IAG – An Example
Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of IAG using a CFD, at the current price of 486p. To do this, you need £2,000.
Let’s assume the IAG trend continues to highs of 566p (+16%). Your profit would be £1600, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. IAG 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.