By Darrell Martin
Looking for evening trades? Wednesday, August 3, at 9:30 PM ET, Australian Retail Sales numbers will be released, creating an evening trade opportunity. Retail sales are a main gauge for consumer spending, which makes up the majority of economic activity.
It’s not possible to know the direction the market will go in reaction to the news. An Iron Condor strategy is one that is prepared for either direction. Trading Nadex AUD/USD spreads, a lower spread is bought with the ceiling where the market is trading at the time and another spread is sold with the floor where the market is trading at the time. Enter as early as 9:00 PM ET utilizing the 11:00 PM ET expiration. This will give this Iron Condor trade the time it needs to make its move.
On average, the market makes around a 25-pip move in reaction to this news. Each spread should have a profit potential of around $12 or more, for a total combined profit of $25 or more. Using the spread scanner, traders can immediately see the reward potential of the spreads to simply find the spreads and execute their trade. See below for the layout of spread scanner.
Stops should be placed where the market would hit 50 pips above and below where the trade started. The market tends to make a move and then pull back on these kinds of scheduled news releases. Max profit is when the market is between the spreads at settlement.
