easyJet
Is this an opportunity to take a position ahead of the results?
easyJet reports results on Friday 28th Sept
- The chart shows the price movement last time easyJet reported (18 July).
- The shares opened +56p (+3.4%), traded as high as +84p (+5.1%)
- They fell as low as +4p (+0.2%) and closed +35p (+2.1%), for a daily trading range of 4.8%.
- The reason for the share price rise was the company raised profits guidance.
- Shares -26.3% from 2018 lows, +0.7% from 2018 highs, -7.4% YTD.
- Recent share price range: September lows 1309p; September highs 1442p. Currently 1338p (at time of writing).
- easyJet issues a full year trading statement on Friday (29 Sept). Will we see another big move?
Trading easyJet– An Example
Let’s say you think that easyJet results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of easyJet using CFDs, at the current price of 1338p. To do this, you need £2,000.
For the purpose of this example, let’s assume easyJet reports strong results and the shares rise 6%. Your profit would be £600, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 3% below the current price. easyJet 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.