Is this an opportunity to take a position ahead of the results?
Tesco issues a Q1 Trading Update on Thurs, 13 June
- Last time Tesco reported: Full Year Results, 10 April
- The shares rose as much as 4.2% on the day range of 9.9p or 4.2%
- Shares -9% from 2019 highs; +22.9% from 2019 lows; +21.7% year-to-date.
- Currently 231p (at time of writing).
- Could we see another big share price move on Thursday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Tesco – An Example
Let’s say you think that Tesco results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Tesco using CFDs, at the current price of 231p. To do this, you need £2,000.
For the purpose of this example, let’s assume Tesco 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. Tesco 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.