By Darrell Martin
CB Consumer Confidence and US Existing Home Sales numbers will be released Tuesday, February 23, 2016, at 10:00 AM ET. CB stands for The Conference Board, an independent research association. Consumer confidence is a leading indicator for consumer spending, which is a leading indicator for the overall economy. Home Sales also is a leading indicator for reading the economy, and together their releases can move the markets and create implied volatility ideal for an Iron Condor trade, using Nadex spreads.
You can enter this trade as early as 9:00 AM ET for 11:00 AM ET expirations. The profit potential for the setup is $30 or more combined between the spreads. The Iron Condor is a strategy using two spreads: a bought lower spread and a sold upper spread designed to capture profit when the market ranges or moves and then pulls back.
To set up your Iron Condor, buy a lower Nadex EUR/USD spread with the ceiling where the market is currently trading and at eh same time, sell an upper Nadex EUR/USD spread with the floor where the market is currently trading. In this way, your bought spread’s ceiling will meet the floor of your sold spread. Each spread should have a reward potential of around $15 or more.
Using the spread scanner available for free access at www.apexinvesting.com, you can easily at a glance find spreads with this criteria. After placing your trades, be sure to set stop limits to take profit. If the market makes a move in either direction, then one side can profit and should it pull back far enough, the other side can profit. If the market just ranges, and at expiration is right between your spreads, you can make max profit. For every tick away the market is from the center of your spreads at expiration, it is only $1 less in profit.
The place to put your stop limit orders is at the 1:1 max risk/reward ratio points, where the market would move 60 pips up or down. That gives the market a range of 120 pips to move within before you are stopped out.
To learn more about Iron Condors, and for free education on how to trade Nadex binaries and spreads as well as futures, forex and CFDs go to www.apexinvesting.com. Nadex is a CFTC regulated exchange located in the US and can be traded from 48 different countries.
