Domino’s UK & IRL
Is this an opportunity to take a position ahead of the results?
Domino’s issues a Q1 Trading Update on Tuesday, 7 May.
- Last time Domino’s reported: FY Results, 12 March.
- The shares rose as much as 7.5% on the day for a daily range of 26.6p or 11.4%.
- Shares -8.8% from 2019 highs; +17.7% from 2019 lows; +11.7% year-to-date.
- Currently 260p (at time of writing).
- Will we see another big share price move on Tuesday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Domino’s – An Example
Let’s say you think that Domino’s results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Domino’s using CFDs, at the current price of 260p. To do this, you need £2,000.
For the purpose of this example, let’s assume Domino’s reports strong results and the shares rise 10%. Your profit would be £1000, 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. Domino’s 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.