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

IAG reports results on Friday, 26 Oct

• The chart shows the price movement last time IAG reported: H1 Results, 3 Aug.
• The shares opened -3.4p (-0.5%), and fell as low as -34p (-5%) and rose as high as -2.8p (-0.4%)
• The shares closed -15.2p (-2.2%) for a daily range of 31.2p or 4.6%.
• Recent share price range: Oct lows 547p; Oct highs 656p. Currently 573p (at time of writing).
• Shares -22.2% from 2018 highs; +3.4% from 2018 lows; -11.9% year-to-date
• IAG publishes Q3 Results on Friday, 26 Oct
• Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading IAG – An Example

Let’s say you think that IAG results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of IAG using CFDs, at the current price of 572p. To do this, you need £2,000.

For the purpose of this example, let’s assume IAG reports strong results and the shares rise 8%. Your profit would be £800, from your initial investment of £2,000.

Conversely, let’s assume you open the position, and place a stop-loss 3% below the current price. IAG results miss, it falls 3% and hits your stop-loss. Your loss would be £300.

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