A trading opportunity for you?
Will Playtech continue falling, or will it rise again back to 415p last week’s highs?
- Playtech shares -12.5% from last week’s highs; -4.5% today.
- 11 Feb: Bank of America downgraded the online bookmaker to Underperform.
- Broker cited lack of visibility in Asia for the ratings cut.
- Now trades 365p (at time of writing).
- Shares -17.7% from 2019 highs; +1.4% from 2019 lows; -0.5% year-to-date.
- Can the stock recover to recent highs?
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Playtech – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 415p. You decide to buy exposure to £10,000 worth of Playtech using a CFD, at the current price of 365p. To do this, you need £2,000.
Let’s assume Playtech recovers back to 415p last week’s highs (+13.6%). Your profit would be £1360, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Playtech falls 6% and hits your stop-loss. Your loss would be £600.
This is provided for information purposes only. It should not be taken as a recommendation.