By Darrell Martin
A report put together from a survey of approximately 900 home builders will be released on Monday, March 16, 2015 by the National Association of Home Builders (NAHB). This report will indicate whether the surveyed home builders think there is a favorable or a negative outlook on home sales. You can trade this scheduled news using Nadex spreads. Nadex now offers trading opportunities for those who live outside the United States as well. It is also easy to open an account and start trading with them.
The average move after this news event is 30 pips on the EUR/USD. However, through analysis of market reaction from the past 24 reports by Apex Investing, it was found that the market normally makes a move and then pulls back, sometimes even returning to where it started. To capture profit on a move like this, an Iron Condor setup using Nadex spreads works really well.
Iron Condors Capture Profit Whichever Direction the Market Goes and Returns
An Iron Condor will capture profit if the market moves in either direction and returns. It uses two spreads. For this trade the first spread would be a Nadex EUR/USD upper spread that is sold with its floor being where the current underlying EUR/USD market is trading. The second spread would be a Nadex EUR/USD lower spread that is bought with its ceiling being where the current underlying EUR/USD market is trading.
Leave On Until Expiration
For this event you would enter as early as 9:00 AM ET for an 11:00 AM ET expiration. The release is at 10:00 AM ET. The Iron Condor should have a profit potential of $30 or more. You can leave your spreads on until expiration giving the market plenty of time to make its move and then return to between your two spreads for maximum profit. If $30 seems like little profit, you can always trade more spreads as long as each side of the Iron Condor has an equal number. Apex Investing has a news calendar complete with event information and recommended strategies to trade at www.apexinvesting.com.