FedEx
Is this an opportunity to take a position ahead of the release?
FedEx is due to issue a Q2 Results on Tue, 18 Dec
- The chart shows price movements last time FedEx reported (Q1 Results, 17 Sept, after market hours).
- The shares opened -$6.30 (-2.5%) the next trading day, bounced to -$5.96 (-2.3%, high of the day), but fell as low as -$14.55 (-5.7%).
- The shares closed -$14.21 (-5.6%), for a daily trading range of $8.59 or 3.4%.
- Shares -33% from 2018 highs, now trading at 2018 lows, -26.2% year-to-date.
- Currently trading at $184.19 (at time of writing).
- FedEx will publish Q2 Results on Tue, 18 Dec. Will we see another big move?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading FedEx – An Example
Let’s say you think that FedEx results are likely to be good, and the price is likely to rise. You decide to buy exposure to £10,000 worth of FedEx using a CFD, at the current price of $184.19. To do this, you need £2,000.
For the purpose of this example, let’s assume FedEx reports strong results and the share price rises by 10%. Your profit would be £1,000, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. FedEx results miss, it falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.