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

Stagecoach is due to report results this Wednesday, 19th September

• The chart shows the price movements last time Stagecoach reported.
• The last time Stagecoach issued results in late June, the share price moved 10.5p higher.
• Shares rose after Stagecoach reported profit rising five-fold.
• Stagecoach will issue a trading update on Weds, 19 Sept
• Recent share price: 1 month lows were at 158p. 1 month high at 173p. Currently at 163.3p (at time of writing).

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Trading Stagecoach – An Example

Let’s say you think that Stagecoach results are likely to be good, and the price is likely to rise. You decide to buy exposure to £10,000 worth of Stagecoach using a CFD, at the current price of 163.3p. To do this, you need £2,000.

For the purpose of this example, let’s assume Stagecoach reports strong results and the share price rises by 7%. Your profit would be £700, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price of 163.3p. Stagecoach 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.