By Darrell Martin
US Core Goods and Core Durable Goods Orders come out Wednesday, July 27, at 8:30 AM ET. These orders are of hard good products. Rising purchase orders mean increased activity for manufactures which is indicative of production. This monthly scheduled news tends to move the market making for an Iron Condor trade opportunity using Nadex spreads.
This strategy can profit no matter the direction the market moves, up or down. The Iron Condor is a neutral strategy and meant for market movement that will pull back, range or not move much at all. A spread is bought below the market, with the ceiling where the market is trading at the time and a spread is sold above the market, with the floor where the market is trading at the time. This trade should have a profit potential of $30 or more combined between the spreads.
Nadex Spreads are day trading options. For this trade, two-hour EUR/USD spreads are traded entering at 8:00 AM ET with 10:00 AM ET expirations. While spreads provide capped risk, since only the market range defined by the floor and ceiling is being traded, stops still need to be placed. With a profit potential of $30, stops should be set 60 pips above and below, at the 1:1 risk/reward ratio points.
To find all available spread information, on a given Nadex market in one single window, traders use the spread scanner. After first, finding spreads with the right reward potential, traders can then verify floor and ceiling parameters, open tickets, double check reward potential and place their trades. .
The market tends to make its move after news is announced, and then settles back down with a pull back. The closer to center between the two spreads it is at settlement, the higher the profit.
Free day trading education and access to the spread scanner can be found at www.apexinvesting.com.
