Is this an opportunity to take a position ahead of the results?
Softcat reports Q3 Trading Statement on Monday, 20 May
- Softcat last reported 19 March, H1 Results
- The shares rose as much as 8.2% in a daily range of 63p/7.5%.
- 29 Apr: Softcat Started at Add by Numis
- Shares -2.2% from 2018 highs, +63% from 2018 lows, +56% YTD.
- Softcat issues a Trading Statement on Monday 20 May. Will we see another big move?
Trading Softcat – An Example
Let’s say you think that Softcat results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Softcat using CFDs, at the current price of 920p. To do this, you need £2,000.
For the purpose of this example, let’s assume Softcat 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. Softcat 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.