Back-To-Back Swiss Reports Offer Overnight Trading Opportunities


By Darrell Martin

On Thursday morning, March 15, two different reports will be released in Switzerland at 4:15 AM and 4:30 AM ET. First, the Federal Statistical Office will release the Producer Price Index (PPI) at 4:15. Month over Month and Year over Year versions will be released with both being forecast to come in with lower percentages than last month. PPI is a leading indicator of consumer price inflation since it measures the change in the price of goods sold by manufacturers.

At 4:30 AM ET, the Swiss National Bank will release the Interest Rate Decision and the Monetary Policy Assessment. Both reports have a high level of importance; however, the interest rate is forecast to remain unchanged.

Often, markets will react to news releases and make a quick move or a larger than usual move. After the move, the market will pull back. It is on the pull back that the Iron Condor strategy can profit. Using Nadex spreads, a capped risk instrument, the trader can sell a top range of the market and buy a lower range of the market.

To set up an Iron Condor, one spread is bought below the market and the ceiling of its range meets where the market is currently trading. Another spread is sold above the market. This spread should have the floor of its range meeting where the market is trading and the ceiling of the bought spread. The market can move either direction. Profit is made when the market pulls back near to where it was at entry. Alternatively, the market can just range there as well and profit be made.

For either of these news releases, enter the Nadex USD/CHF Spreads as early as 11:00 PM ET Wednesday March 14, for the 7:00 AM expiration. Each spread should have a profit potential of at least $17 for a combined profit potential of $35 or more. This will put the bid and ask approximately 17 pips or more below and above the market respectively. The breakeven points would allow the market to settle as far as 35 pips above and below where the market is at entry and profit.

Risk is capped. The market can move past the floor and ceiling of the combined spreads and risk will stop at those points. Manage risk further by placing stops using the Apex Scanner Pro’s Stop Trigger Ticket. The 1:1 risk reward ratio points are where the market would hit 70 pips above and below from where the market was at entry. Simply double the amount of the combined profit potential to find this number.

Remember, there is no trade if the parameters of the trade cannot be met. Never force the trade. For more news trading opportunities, visit the News Plan area of the Apex Forum.