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

Close Brothers reports results tomorrow (25 Sept)

• The chart shows the price movement last time Close Brothers reported (18 July).
• The shares opened 12p higher, but closed the day flat at 1,522p
• Retail reported Q2 sales down 5.9% YoY
• Company reported good performance across all divisions with solid loan book growth
• Close Brothers will issue a Half-year results tomorrow (25 Sept)
• Recent share price range: September lows 1,553p; September highs 1,675p. Currently 1,647p (at time of writing).

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Trading Close Brothers – An Example

Let’s say you think that Close Brothers results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Close Brothers using CFDs, at the current price of 1,647p. To do this, you need £2,000.

For the purpose of this example, let’s assume Close Brothers reports strong results and the shares rise 5%. Your profit would be £500, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss 3% below the current price. Close Brothers 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.