Is this an opportunity to take a position ahead of the results?

Antofagasta reports results on Wednesday (24 Oct)

• The chart shows the price movement last time Antofagasta reported: H1 Results, 14 Aug.
• Shares opened 33.4p lower (-3.5%), rebounded slightly to -21.6p (-2.3%), but then fell as low as -68p (-7.1%).
• The shares closed -66.4p (-7%) for a daily range of 46.4p or 4.9%.
• Antofagasta’s H1 EBITDA fell 16% as production decreased and costs increased.
• Company said it expects volumes and unit costs to improve during H2 and into 2019.
• Recent share price range: Oct lows 744.1p; Oct highs 888.1p. Currently 772.4p (at time of writing).
• Antofagasta publishes a Q3 Production Report tomorrow (Weds 24 Oct).
• Will we see another big move?

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Trading Antofagasta – An Example

Let’s say you think that Antofagasta results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Antofagasta using CFDs, at the current price of 772.4p. To do this, you need £2,000.

For the purpose of this example, let’s assume Antofagasta reports strong results and the shares rise 7%. Your profit would be £700, 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. Antofagasta 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.