Reckitt Benckiser
Is this an opportunity to take a position ahead of the results?
Reckitt Benckiser reports FY results on Monday, 18 Feb
- Last time Reckitt reported: Q3 Trading Update, 30 Oct.
- The shares closed -4.5% for a daily range of 134p or 2.0%.
- Shares -16.9% from 2018 highs; +13.4% from 2018 lows; -1.2% year-to-date.
- Currently 5940p (at time of writing).
- Will we see another big share price move on Monday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Reckitt Benckiser – An Example
Let’s say you think that Reckitt results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Reckitt using CFDs, at the current price of 5940p. To do this, you need £2,000.
For the purpose of this example, let’s assume Reckitt reports strong results and the shares rise 10%. Your profit would be £1000, 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. Reckitt 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.