Persimmon reports results on Wednesday, 7 November

• The chart shows the price movement last time Persimmon reported: H1 Results, 21 August.
• Shares opened +16p (+0.7%), fell as low as -21p (-0.9%), but went on to rise as high as +56p (+2.3%, high of the day) later in the session.
• The shares closed -4p (-0.2%) for a daily range of 77p or 3.2%.
• Persimmon reported higher H1 profit and gross margin improvement beat forecasts.
• Shares -18% from 2018 highs; +11% from 2018 lows; -13.1 year-to-date.
• Recent share price range: Oct lows 2152p; Oct highs 2447p. Currently 2378p (at time of writing).
• Persimmon publishes a Q3 Trading Update on Wednesday, 7 Nov.
• Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Persimmon – An Example

Let’s say you think that Persimmon results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Persimmon using CFDs, at the current price of 2378p. To do this, you need £2,000.

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