Is this an opportunity to take a position ahead of the results?
Persimmon reports results on Tuesday, 15 January
- The chart shows the price movement last time Persimmon reported: Q3 Trading Update, 7 Nov.
- Shares opened +5p (+0.2%), fell as low as -20p (-0.8%) and rose as high as +44p (+1.9%).
- The shares closed +13p (+0.6%) for a daily range of 64p or 2.7%.
- Persimmon’s appointed a new interim CEO to replace outgoing Jeff Fairburn, who left over pay controversy.
- Recent share price range: Dec lows 1936p; Jan highs 2154p. Currently 2093p (at time of writing).
- Persimmon publishes a Trading Update on Tuesday, 15 Jan.
- Will we see another big move?
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Persimmon – An Example
Let’s say you think that Persimmon results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Persimmon using CFDs, at the current price of 2093p. To do this, you need £2,000.
For the purpose of this example, let’s assume Persimmon 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 5% below the current price. Persimmon results miss, it falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.