Auto Trader
Is this an opportunity to take a position ahead of the results?
Auto Trader publishes Full year Results on Thurs, 6 Jun.
- Last time Auto Trader reported: FY Results, 8 Nov.
- The shares rose as much as 5.7% for a daily range of 24.2p or 5.5% on the day.
- Currently 578p (at time of writing).
- Will we see another big share price move on Thursday?
- Shares -3.9% from 2019 highs; +33.5% from 2019 lows; +27.1% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Auto Trader – An Example
Let’s say you think that Auto Trader results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Auto Trader using CFDs, at the current price of 578p. To do this, you need £2,000.
For the purpose of this example, let’s assume Auto Trader reports strong results and the shares rise 10%. Your profit would be £1,000, 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. Auto Trader 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.