Royal Mail
Is this an opportunity to take a position ahead of the results?
Royal Mail publishes a 9-month Trading Statement on Wednesday, 22 May.
- Last time Royal Mail reported: 9M Trading, 29 January.
- The shares closed -5.2% for a daily range of 38.4p or 12.8%.
- Shares -24.2% from 2019 highs; +4.7% from 2019 lows; -14% year-to-date.
- Currently 233p (at time of writing).
- Will we see another big share price move on Wednesday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Royal Mail – An Example
Let’s say you think that Royal Mail results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Royal Mail using CFDs, at the current price of 233p. To do this, you need £2,000.
For the purpose of this example, let’s assume Royal Mail 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. Royal Mail 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.