News Trading Preperation

#1

So it says look for 8, 9, or 11 PM Sreead or 11 PM Binary expirations.

Do we want straddles or strangles or just straight Spread or Binary? Are we planning on it only to move up only?

Then it says The Forecast for the number is 1.2% If the actual number comes in = or > 1.5 % (Buy) or < or = .8% (Short)

Does that mean we only should buy/short if the number is=> 1.5% or <= .8%? And do nothing if its in between that?

What does this mean - It may move further if we hit the divergence from the forecast. (What is the divergence from the forecast?) We usually look to exit near breakeven if we dont get the divergence from the forecast. On this play we see a easy 40 pip move happening within 30 mins.

I am really confused on all the news explanations.

Thanks Darrell!! Kellie

#2

Straddle or strangle. I rarely go directional on a measured mew event. The forecast is just the reported economist concensus. You won’t know the actual till it comes out by then it’s to late. The number let’s you know what kind of number to expect a larger than average move on and if less than that number to be careful and look to potentially exit breakeven Check my radio show the last week or two I walk through news in detail. Also check Al the videos about news in the news questions section of the forum these should help.

It’s a bit complex bit gets easier and easier. Demo it while your learning it mistakes are cheaper in demo.

Divergence is the difference in actual from forecast. If we don’t get the divergence of the actual versus the forecasted number and it’s not moving much we look to exit at breakeven.

I usually choose to straddle spreads as often the numbers risk reward is better and on spread straddle s you can breakeven where binary distances are either a win or a lose.

#3

On your News trade for today Darrell, is says 6 pm - 8pm Jan 21 at the top. And the CPI is said to be released at 7:30 PM EST when should we start looking for our straddle spread? Mark said Nadex is closed before 6 pm EST … looks like it closes between 5 and 6 pm EST for end of day processing. How do we juggle our “looking for straddle spreads” with their being closed?

Thanks!!

#4

yes notice it states the release is at 7:30 you can look at early at 6pm or as late at 7:15 pm

nothing to juggle beetween 5 and 6 no markets are open just start looking no sooner than 6 pm et