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

Boohoo reports results tomorrow (26 Sept)

• The chart shows the price movement last time Boohoo reported (12 June).
• The shares opened 2.9p higher, but later trader as low as 13.9p down, ending the session -2.1p
• Q1 revenue increased 53% and Boohoo backed revenue guidance.
• Sales beat expectations and gross margins increased by 100 basis points
• Boohoo will issue a Half-year results tomorrow (26 Sept)
• Recent share price range: September lows 167p; September highs 191p. Currently 190.7p (at time of writing).

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Trading Boohoo – An Example

Let’s say you think that Boohoo results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Boohoo using CFDs, at the current price of 190.7p. To do this, you need £2,000.

For the purpose of this example, let’s assume Boohoo reports strong results and the shares rise 6%. Your profit would be £600, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss 4% below the current price. Boohoo results miss, it falls 4% and hits your stop-loss. Your loss would be £400.

This is provided for information purposes only. It should not be taken as a recommendation.