Persimmon reports results on Tuesday, 15 January

• The chart shows the price movement last time Persimmon reported: Q3 Trading Update, 7 Nov.
• Shares opened +5p (+0.2%), fell as low as -20p (-0.8%) and rose as high as +44p (+1.9%).
• The shares closed +13p (+0.6%) for a daily range of 64p or 2.7%.
• Persimmon’s appointed a new interim CEO to replace outgoing Jeff Fairburn, who left over pay controversy.
• Recent share price range: Dec lows 1936p; Jan highs 2154p. Currently 2093p (at time of writing).
• Persimmon publishes a Trading Update on Tuesday, 15 Jan.
• 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 2093p. 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.