How to buy and short Oatly shares

Oatly, a Swedish food brand, joined the growing list of publicly traded vegan stocks in 2021. Discover how to get exposure to Oatly with us in this guide.

How to buy Oatly shares: investing or trading

You can either buy and own physical Oatly shares (investing) or speculate on its share price, predicting whether it will rise or fall (trading).

Investing in Oatly shares

Investing in Oatly’s shares gives you direct ownership of them, making you eligible to receive dividends if the company happens to grant them. Plus, you’ll have voting rights as a shareholder.

To buy and own Oatly shares, your initial outlay must be the full value of your investment. With a possible rise and fall in the share price, you may get back less than the amount you committed. However, potential losses are capped at your total initial outlay (excluding additional fees).

You’ll make a profit if the company offers dividends or if you sell the shares when the share price is higher than the original buy price, or both.

Trading Oatly stock

Trading Oatly stock means that you’re speculating on the price movements of the company’s share price without owning the underlying assets. If you think that the share price will rise, you’ll ‘buy’ (go long) and if you think it will fall, you’ll ‘sell’ (go short).

With us, you can trade Oatly shares in these steps:

  1. Create an account or log in
  2. Search for ‘Oatly’ on our trading platform
  3. Select ‘buy’ to go long or ‘sell’ to go short in the deal ticket
  4. Set your position size and take steps to manage your risk
  5. Open and monitor your position

When trading with us, you’ll use leveraged derivatives such as CFDs.

Trading with leverage means that you can get full exposure while only committing a deposit called margin. It’s vital that you manage your risk as leverage can magnify both your possible profits and losses to the full value of your position.

Discover more about the impact of leverage on trading

See our full trading costs and charges

How to short Oatly shares

You can short Oatly shares using CFDs with us. Short-selling is a way for you to potentially profit (or make a loss) from a drop in share price by selling (going short on) the underlying shares rather than buying (going long).

With us, you can short-sell in these steps:

  1. Create an account or log in
  2. Search for ‘Oatly’ on our platform
  3. Select ‘sell’ in the deal ticket
  4. Choose your position size
  5. Open and monitor your position

If you think that the Oatly share price will drop, you’d take a short position. If your prediction is correct, you’d make a profit. If incorrect, you’d make a loss.

Remember, CFDs are leveraged, meaning you’d pay an initial deposit that’s a percentage of the full value of your position, but both possible profits and losses are magnified to the full value of your trade.

Learn more about short-selling

How to sell or close your Oatly position

You can sell your Oatly investment or close your trade in these steps:

Selling your Oatly investment

  1. Log in and go to the trading account where you placed the trade
  2. Go to the positions tab and select ‘Oatly’
  3. Select ‘sell’ in the deal ticket
  4. Choose the number of shares you want to sell
  5. Close your position

A brief history of Oatly

Oatly was founded in 1992 by a sustainability-focused food scientist Rickard Öste – this marked the development of oat milk. In 1994, the company started selling it in Sweden. The Oatly brand is currently available in over 20 countries.

A stake of the company worth $200-million was sold to Blackstone Group in 2020. In its May 2021 Nasdaq listing, Oatly was targeting a valuation of $10 billion, but its market cap shot up to $13 billion at the end of its first trading day.

What’s the Oatly business model?

The Swedish food brand produces milk alternatives and a range of other organic products and sells it in over 20 countries.

The rise in oat milk popularity has caused a significant growth in sales in the plant-based milk category. As a result, the Oatly brand is currently available in over 20 countries.

Oatly share price: how to analyse the Oatly share price

You can analyse Oatly shares using two methods – technical and fundamental analysis – however a combination of the two is usually more useful.

  • Technical analysis comprises of chart patterns, technical indicators and historical price action that can help you predict future price movements
  • Fundamental analysis entails elements such as a company’s net revenue, profit and loss statements, as well as wider macroeconomic factors, that can help you in determining likely share price movements

Publication date : 2021-08-25T03:48:37+0100

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

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