British American Tobacco
Is this an opportunity to take a position ahead of the results?
British American Tobacco issues a Half-Year Update on Weds, 12 Jun
- Last time British American Tobacco reported: FY Results, 28 Feb.
- The shares traded a range of 76p or 2.7% on the day
- Shares -5.1% from 2019 highs; +30.9% from 2019 lows; +22.3% year-to-date.
- Currently 3057p (at time of writing).
- Could we see another big share price move on Wednesday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading British American Tobacco – An Example
Let’s say you think that British American Tobacco results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of British American Tobacco using CFDs, at the current price of 3057p. To do this, you need £2,000.
For the purpose of this example, let’s assume British American Tobacco 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 3% below the current price. British American Tobacco results miss, it falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.