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

Hargreaves Lansdown reports results on Thursday (11th Oct)

• The chart shows the price movement last time Hargreaves Lansdown reported full-year results (7 August).
• The shares opened just -53p (-2.5%) and traded as low as -94p (-4.4%)
• The shares closed the session -87p (+4.1%), for a daily trading range of 56p or 2.6%.
• The full-year results were mixed, with pre-tax profit +10%, but AUM missed expectations (£88.8bn vs. £92.28bn market est.).
• Shares -10.4% from 2018 highs; +28.1% from 2018 lows; +12.2% year-to-date.
• Recent share price range: Oct lows 2,024p; Sept highs 2,277p. Currently 2,024p (at time of writing).
• Hargreaves Lansdown issues half-year results on Thursday (11 Oct). Will we see another big move?

Click to enlarge

Trading Hargreaves Lansdown – An Example

Let’s say you think that Hargreaves Lansdown results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Hargreaves Lansdown using CFDs, at the current price of 2,024p. To do this, you need £2,000.

For the purpose of this example, let’s assume Hargreaves Lansdown reports strong results and the shares rise 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 7% below the current price. Hargreaves Lansdown results miss, it falls 7% and hits your stop-loss. Your loss would be £700.

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