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

Bellway reports results on Tuesday (16th Oct)

• The chart shows the price movement last time Bellway reported: trading update, 8 Aug.
• Opened 57p lower (-1.9%, fell as low as -169p (-5.7%), closed -38p (-1.3%); daily range 140p (4.7%).
• Bellway forecast slowdown in growth in 2019, dragging the Housebuilding sector down.
• Shares -21.84% from 2018 highs; +3.66% from 2018 lows; -19.7% year-to-date.
• Recent share price range: Oct lows 2789p; Septhighs 3083p. Currently 2892p (at time of writing).
• Bellway issues full-year results on Tuesday (16 Oct).
• Will we see another big move?

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Trading Bellway – An Example

Let’s say you think that Bellway results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Bellway using CFDs, at the current price of 2892p. To do this, you need £2,000.

For the purpose of this example, let’s assume Bellway reports strong results and the shares rise 8%. Your profit would be £800, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss 5% below the current price. Bellway 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.