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

Domino’s Pizza reports results on Thursday (18th Oct)

• The chart shows the price movement last time Domino’s Pizza reported: half-year results, 7 Aug.
• Results fell short of expectations, as the pizza delivery chain took a 9.7% hit to pre-tax profit from higher labour costs and investments in a new distribution centre.
• Shares opened 7p lower (-2.2%) and fell as low as -38p (-11.9%), closing -30.8p (-9.7%); daily range 31p (9.7%).
• Shares -32% from 2018 highs; +1.6% from 2018 lows; +23.6% year-to-date.
• Recent share price range: Oct lows 261p; Oct highs 284p. Currently 263p (at time of writing).
• Domino’s Pizza issues a Q3 Trading Update on Thursday (18 Oct).
• Will we see another big move?

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Trading Domino’s Pizza – An Example

Let’s say you think that Domino’s Pizza 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 Pizza using CFDs, at the current price of 263p. To do this, you need £2,000.

For the purpose of this example, let’s assume Domino’s Pizza reports strong results and the shares rise 7%. Your profit would be £700, 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. Domino’s Pizza 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.