TUI
Is this an opportunity to take a position ahead of the results?
TUI reports results tomorrow on Thursday (27th Sept)
- The chart shows the price movement last time TUI reported (9 Aug).
- The shares opened -32.5p (-2.1%, fell as lows as -153.5p (-9.7%, but only closed down 40p (-2.5%) on the day.
- The results day trading range was thus 121p or 7.6%
- Could we see a similar range again on Thursday?
- On 9 Aug (trading statement) TUI said good weather across N. Europe could limit growth in the key Q4 period.
- Shares -23.9% from 2018 highs; +5.5% from 2018 lows; -9.9% year-to-date
Trading TUI – An Example
Let’s say you think that TUI results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of TUI using CFDs, at the current price of 1387p. To do this, you need £2,000.
For the purpose of this example, let’s assume TUI 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 above position, and place a stop-loss 5% below the current price. TUI 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.