Is this an opportunity to take a position ahead of the results?
Hikma Pharma issues a Trading Update on Friday, 17 May
- Last time Hikma Pharma reported: FY Results, 13 Mar.
- The shares traded a daily range of 123p or 7.4%.
- Shares -4.3% from 2019 highs; +18.7% from 2019 lows; -3.2% year-to-date.
- Currently 1770p (at time of writing).
- Could we see another big share price move on Friday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Hikma Pharma – An Example
Let’s say you think that Hikma results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Hikma using CFDs, at the current price of 1770p. To do this, you need £2,000.
For the purpose of this example, let’s assume Hikma 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 3% below the current price. Hikma 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.