By Darrell Martin
On Thursday, January 15, there are a variety of U.S. reports coming out that give indications to the state of our economy.
Four reports in particular are scheduled to be released at the same time most likely causing the markets to react and move then settling back down again. When markets move this way, it’s a good time to try Iron Condors with Nadex Spreads.
The Iron Condor is a strategy where you can profit when the price settles anywhere within the range of the condor, i.e. the 2 spreads, but with the highest profit from settling directly in the middle.
For these events you can enter as early as 8:00 AM EST with an expiration of 10:00 AM EST. Before 8:00 AM, look to see where the market is trading. Look for two spreads. Buy a lower spread choosing one with the ceiling at where the market is trading.
Sell an upper spread with its floor being the same as the ceiling of the lower spread, and also where the market is currently trading. For this trade you want an iron condor with a minimum profit potential of $25. The market to trade for these reports is the EUR/USD.
The reports coming out at 8:30 AM EST include: Producer Price Index or PPI, Core PPI, and Empire State Manufacturing Index. All of these reports come out monthly around the middle of the month. When the actual numbers released are greater than the forecast numbers then it is good for currency.
The first two reports are released by the Department of Labor. PPI measures the change in the price of finished goods and services and is a leading indicator of consumer inflation. The Core PPI differs from the PPI in that it measures the change in the price of finished goods and services sold by producers but excluding food, energy and trade, thereby making it Core PPI.
Finally, the Empire State Manufacturing Index is released by the Federal Reserve Bank of New York, our Empire State. The report measures the level of a diffusion index based on 200 manufacturers surveyed of New York State.
This report is a leading indicator of economic health. Businesses react quickly to changes in market conditions and the sentiment of manufacturers can signal future economic activity including spending, capital investment, and hiring.
If you are unsure about trading an Iron Condor but still want to trade the news event, just be aware of the reports coming out. The expected move is around 25 pips in either direction and then returning. It may or may not return to its starting price in the market. Apex Investing evaluates news reports regularly and releases weekly recommendations on how to trade them.
A complete monthly news plan is available at Apex, to trade a variety of markets based on numerous news events. If you would like to learn more on how to trade Iron Condors or trade other news events, go to www.apexinvesting.com. Apex Investing Institute offers free education, and free access to the Nadex Binary and Spread Scanner Analyzers. Member traders are invited to trade in the rooms, take advantage of trade signal services, have key indicators and access the Apex Forum. The forum content is updated daily and includes over 9000 members. In a supportive learning community of seasoned as well as up and coming traders, traders of all levels learn how to trade Nadex binaries and spreads in depth, as well as futures, forex, stock and options, and gain an edge for successful trading overall.