AO World
Is this an opportunity to take a position ahead of the results?
AO World publishes Full year Results on Tuesday, 4 Jun.
- Last time AO World reported: Trading Update, 4 Apr.
- The shares traded a daily range of 7.1p or 7.3%.
- Currently 113.5p (at time of writing).
- Will we see another big share price move on Tuesday?
- Shares -16.9% from 2019 highs; +29.7% from 2019 lows; -11.6% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading AO World – An Example
Let’s say you think that AO World results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of AO World using CFDs, at the current price of 113.5p. To do this, you need £2,000.
For the purpose of this example, let’s assume AO World 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 5% below the current price. AO World 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.