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

Ferrexpo reports results on Tuesday (9th Oct)

• The chart shows the price movement last time Ferrexpo reported (2 August).
• The shares opened just 0.5p higher, but fell sharply as low as -42.2p (-20.4%)
• The shares closed the session -40p (-19.8%), for a daily trading range of 42.7p or 21.1%.
• On 2 August Ferrexpo reported that H1 pre-tax profit was dragged down by cost increases.
• Rising energy prices and higher mining costs were expected to continue through the rest of 2018.
• Shares -32.4% from 2018 highs; +57.4% from 2018 lows; -27.3% YTD.
• Recent share price range: Sept lows 138p; Oct highs 229p. Currently 213p (at time of writing).
• Ferrexpo issues a Q3 Production report on Tuesday (9 Oct). Will we see another big move?

Click to enlarge

Trading Ferrexpo – An Example

Let’s say you think that Ferrexpo results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Ferrexpo using CFDs, at the current price of 213p. To do this, you need £2,000.

For the purpose of this example, let’s assume Ferrexpo 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 above position, and place a stop-loss 5% below the current price. Ferrexpo 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.