ITE
Is this an opportunity to take a position ahead of the results?
ITE reports results tomorrow, 3rd October
- The chart shows the price movement last time ITE reported (10 July).
- The shares opened +0.8p (+1%; low of the day), traded as high as +14.1p (+17.8%)
- They closed +11p (+13.9%), for a daily trading range of 13.3p or 16.8%.
- 10 July: Numis says ITE reassures on FY 2018 outlook
- Shares -32.7% from 2018 highs, +13.2% from 2018 lows, -33.4% YTD.
- Recent share price range: Sept lows 71p; Aug highs 85p; Currently 75p (at time of writing).
- Tesco issues a Q4 Trading Statement on Wednesday (3 Oct). Will we see another big move?
Trading ITE – An Example
Let’s say you think that ITE results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of ITE using CFDs, at the current price of 75p. To do this, you need £2,000.
For the purpose of this example, let’s assume ITE 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 above position, and place a stop-loss 3% below the current price. ITE 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.