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

SIG reports results this Friday, 21th September

• The chart shows the price movements last time SIG reported (4 July)
• The shares opened -2.6p at 135.8p.
• The shares moved as high as 139.1p, ending the day just 0.7p higher.
• SIG reiterated FY guidance despite a decline in H1 revenue due to adverse weather.
• SIG will issue FY results on Fri, 21 Sept.
• Recent share price range: 1 month low 120.8p. 1 month high 132.3p. Currently 122.4p (at time of writing).
• Will we see a stronger bounce in share price when SIG reports results?

Click to enlarge

Trading SIG – An Example

Let’s say you think that SIG results are likely to be good, and the price is likely to rise. You decide to buy exposure to £10,000 worth of SIG using a CFD, at the current price of 122.4p. To do this, you need £2,000.

For the purpose of this example, let’s assume SIG reports strong results and the share price rises 5%. Your profit would be £500, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss 4% below the current price. SIG results miss, it falls 4% and hits your stop-loss. Your loss would be £400.

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