Is this an opportunity to take a position ahead of the results?
Boohoo issues a Trading Update on Weds, 12 Jun
- Last time Boohoo reported: FY Results, 24 Apr.
- The shares rose as much as 10.3% on the day for a range of 24.7p or 11.4%
- Shares -6.8% from 2019 highs; +50.3% from 2019 lows; +43.7% year-to-date.
- Currently 232.1p (at time of writing).
- Could we see another big share price move on Wednesday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Boohoo – An Example
Let’s say you think that Boohoo results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Boohoo using CFDs, at the current price of 232.1p. To do this, you need £2,000.
For the purpose of this example, let’s assume Boohoo reports strong results and the shares rise 10%. Your profit would be £1,000, from your initial investment of £2,000.
Conversely, let’s assume you open the position, and place a stop-loss 3% below the current price. Boohoo results miss, it 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.