WPP
Is this an opportunity to take a position ahead of the results?
WPP reports FY Results on Friday, 1 Mar
- Last time WPP reported: Strategic Review, 11 Dec.
- The shares closed +4.8% for a daily range of 53.2p or 6.6%.
- Shares -5.3% from 2019 highs; +7.9% from 2019 lows; +0.9% year-to-date.
- Currently 854p (at time of writing).
- Will we see another big share price move on Friday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading WPP – An Example
Let’s say you think that WPP results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of WPP using CFDs, at the current price of 854p. To do this, you need £2,000.
For the purpose of this example, let’s assume WPP 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. WPP 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.