Trade Tip For Friday When Producer Price Index Numbers Released


By Darrell Martin The Department of Labor will release numbers on the PPI and Core PPI. PPI is Producer Price Index and is expressed as a percentage of change in the price of finished goods and services sold by producers. The Core PPI is the PPI, however; it excludes food, energy and trade from the PPI. The PPI can indicate inflation. If the price of goods and services has gone up, those costs are usually passed on to consumers, hence the indication of inflation.

The release is Friday, June 12, 2015, at 8:30 AM and the recommended trade strategy is an Iron Condor using Nadex Spreads. Nadex Spreads are derivatives of underlying markets. For this particular trade you want to use Nadex EUR/USD Spreads. Buy a lower spread and sell an upper spread. The ceiling of the lower spread should meet the floor of the upper spread and be where the then current underlying EUR/USD is trading. You want your Iron Condor to have a profit potential of $25 or more.

How To Set Up Your Iron Condor For A $25 Or More Profit Potential

To set up the trade with a $25 or more profit potential, you can buy the lower spread for around $10 or more and sell the upper spread for a minimum of $10 or more, so your total comes to around $25 or more. You can trade more than one spread on each side, just be sure to have the same number of spreads on each side of your Iron Condor.

Apex Investing has a news department that tracks the market reaction to various news reports. They look for consistent market moves to scheduled ongoing news events, and then when found, they come up with high probability strategies to trade the future events. The schedule of events along with strategies are posted weekly for traders.

It’s Important To Be Aware Of The News

Even if traders choose not to trade scheduled news events, it is essential to be aware of them. News can move the markets, sometimes significantly and fast, depending on the impact of the news and how influential it is to a market.

For this trade tip, it is recommended to enter this trade as early as 7:00 AM ET for a 9:00 AM ET expiration. Once the news is released, typically the market will react, make its move and then make a pull back, sometimes right back to where it started. When the market does that and pulls back right to the center of your Iron Condor, that is when you make max profit. For a more in-depth understanding of the Iron Condor strategy, take a look at this article, The Awesomeness Of An Iron Condor. To link to the Apex weekly news calendar, visit