Swiss Consumer Price Index Release Wednesday, A Trade Opportunity For The USD/CHF


By Darrell Martin

Even though the release of the Swiss Consumer Price Index (CPI) is at 3:15 AM ET, Wednesday, April 8, in the middle of the night, the USD/CHF can still be traded at a reasonable hour. Using Nadex Spreads and setting up an Iron Condor as early as 11:00 PM ET, Tuesday evening for a 7:00 AM ET expiration, you can set the trade up, leave it for expiration, and go to bed. The strategy for this trade is to find spreads for an Iron Condor setup with a profit potential of $25 or more. Buy the lower Nadex USD/CHF spread with the ceiling where the current underlying market is trading and sell the upper spread with the floor where the current underlying market is trading. For this scheduled news event the average move over the last 24 months was found by Apex Investing to be 25 pips. The CPI measures a change in the price of goods and services bought by consumers. Consumer prices make up the majority of overall inflation. The USD/CHF Tends To Move Then Pulls Back If, when setting up the trade, the spreads available don’t allow for at least a $25 profit potential, then there is no trade. There needs to be at least that much implied volatility in the pricing for a possibility of a profitable trade. After the Swiss CPI has been released, the market tends to react and typically pulls back, rather than just continuing in the same direction. The closer the market pulls back to the center between your Iron Condor spreads, the greater your profit. Leaving your spreads on until expiration gives the trade plenty of time to play out and for the market to return. The Swiss CPI is released monthly. Therefore this is a trade setup that can be traded monthly after this report. If you are interested in learning about more news trades and strategies to trade them visit, a service of Darrell Martin.