Is this an opportunity to take a position ahead of the results?

Travis Perkins reports results on Tuesday (23 Oct)

• The chart shows the price movement last time Travis Perkins reported: Half-year results, 31 July.
• Shares opened 115p lower (-8.6%) and fell as low as -163p (-12.2%),
• The shares did trade as high as -82p (-6.1%) but closed -144.5p (-10.8%); daily range 81p (6.0%).
• The shares fell after management said it expected full year profits at the lower half of analyst views
• Shares -39.2% from 2018 highs; +0.5% from 2018 lows; -37.0% year-to-date.
• Recent share price range: Oct lows 965p; mid-Oct highs 1040p. Currently 986.5p (at time of writing).
• Travis Perkins delivers a Q3 Trading Update tomorrow (Tues 23 Oct).
• Will we see another big move?

Click to enlarge

Trading Travis Perkins – An Example

Let’s say you think that Travis Perkins results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Travis Perkins using CFDs, at the current price of 986.5p. To do this, you need £2,000.

For the purpose of this example, let’s assume Travis Perkins 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. Travis Perkins 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.