IAG (owner of British Airways)
A trading opportunity for you?
Will IAG continue falling, or will it rise again back to 718p highs?
- IAG shares have fallen by another 2% today.
- The shares are -9.7% from August highs
- Shares -10% from 2018 highs; +12.8% from 2018 lows; -2% year to date
- easyJet’s outlook disappointed late last week; Ryanair issued a profits warning today
- Airlines hurt by rising oil prices
Trading International Consolidated Airlines – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards August highs of 718p. You decide to buy exposure to £10,000 worth of IAG using a CFD, at the current price of 648p. To do this, you need £2,000.
Let’s assume IAG recovers back to 718p (+10.8%). Your profit would be £1080, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. IAG falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.