I watched all the IC videos but still need clarification
I will use an example (of GBP/USD) for easier understanding what would be the difference between 2 different days for GBP condor setup, both expire at 7AM. one day has a major news event at 4AM and the other doesn’t. lets assume
I want to set them both at 11pm.
the questions: 1- should I set Limit orders (meaning: orders go into Working orders and waiting) with wider strikes for the GBP. Then go to bed, and hope when the news come around 4AM, the underlying will become volatile and goes Up and Down triggering my working orders into open positions?
2- OR - I got it all wrong, and what happens is: There will ALREADY be wider strikes (Implied Volatility) with GBP at 11pm because MARKET Makers already aware of the news and thus they price the spreads wider? SO AT 11pm I should already set my condors and my positions are OPEN POSITIONS. AND hope and pray the news will not cause the underlying to shoot out of my condor range
3- (this is to confirm #2) is there going to be a difference in spread price width at 11pM on the day there is news for GBP and the day that there is no news?