Trade Canada's Retail Sales And Consumer Price Index Using This Strategy

Retail Sales and Core Retail Sales will be released this week by Statistics Canada, as well as the Consumer Price Index (CPI) and the Core CPI. Retail Sales makes up the majority of economic activity and as such is an important key measure of consumer spending. Retail Sales is the change in total value of retail sales and Core Retail Sales excludes automobiles from the number.

The CPI is indicative of inflation as is measures the change in the price of goods and services purchased by consumers. Core CPI takes the CPI and excludes the eight most volatile items for a more consistent read. The above reports are scheduled to be released 8:30 AM ET, Friday, January 22, 2016.

For these reports, the market can make a move and then pull back making an Iron Condor strategy opportunity.

To set this trade up, traders can buy a lower Nadex USD/CAD spread below the market with the ceiling where the market is trading at the time and sell a Nadex USD/CAD spread with the floor being where the market is trading at the time.

One can enter the trade as early as 8:00 AM ET for 10:00 AM ET expirations.

Since Nadex spreads have a ceiling and a floor, you can’t win or lose past the floor or ceiling depending on the direction of your trade. That also means risk is capped.

The scanner below was designed to be intuitive for traders to use for easy scanning of the overall Nadex spread options available for trade at the time. For a view of the spread scanner showing USD/CAD spreads see below.

To view a larger image click HERE.

After the release of the news the market will react. If it moves in one direction, one side of your Iron Condor could profit. Leave the other side on and as the market pulls back, the other side could profit as well.