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

Greggs reports results on Tuesday (9th Oct)

• The chart shows the price movement last time Greggs reported (31 July).
• The shares opened just 27p higher (+2.8%) and traded as high as +101.5p (+10.6%)
• The shares closed the session +92.5p (+9.6%), for a daily trading range of 85p or 8.8%.
• On 31 July Greggs reported 24% increase in pre-tax profit and raised interim dividend to 10.7p.
• Company’s H1 performance was resilient despite challenging market conditions and management was confident in long-term growth potential for the business.
• Shares -26.6% from 2018 highs; +9.4% from 2018 lows; -26.8% YTD.
• Recent share price range: Oct lows 1,017p; Sept highs 1,088p. Currently 1,023.5p (at time of writing).
• Greggs issues a Q3 trading update on Tuesday (9 Oct). Will we see another big move?

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Trading Greggs – An Example

Let’s say you think that Greggs results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Greggs using CFDs, at the current price of 1,023.5p. To do this, you need £2,000.

For the purpose of this example, let’s assume Greggs reports strong results and the shares rise 15%. Your profit would be £1000, from your initial investment of £1,500.

Conversely, let’s assume you open the above position, and place a stop-loss 8% below the current price. Greggs results miss, it falls 8% and hits your stop-loss. Your loss would be £800.

This is provided for information purposes only. It should not be taken as a recommendation.