Is this an opportunity to take a position ahead of the results?
Petra Diamonds issues a Trading Update on Monday, 15 Apr
- Last time Petra Diamonds reported: Interim Results, 18 Feb.
- The shares rose as much as 9.7% for a daily range of 2.7p or 10.3%.
- Shares -59.9% from 2019 highs; +6.8% from 2019 lows; -51% year-to-date.
- Currently 18.5p (at time of writing).
- Could we see another big share price move on Monday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Petra Diamonds – An Example
Let’s say you think that Petra results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Petra using CFDs, at the current price of 18.5p. To do this, you need £2,000.
For the purpose of this example, let’s assume Petra 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 5% below the current price. Petra 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.