Trade US Prelim Nonfarm Productivity News On Tuesday

US Preliminary Nonfarm Productivity and Preliminary Unit Labor Costs are to be released Tuesday at 8:30 a.m. ET. The preliminary numbers are released quarterly in an annualized format, and get revised later. Both reports have to do with the efficiency and cost of labor, excluding the farming industry, and are indicators for consumer inflation.

Implied volatility can be high, which can create a trade opportunity placing an Iron Condor trade strategy using Nadex EUR/USD spreads. The trade can be entered as early as 8:00 a.m. ET for 10:00 a.m. ET expirations. One spread can be sold above the market with the ceiling of where the market is trading at the time, and another spread can be bought below the market but with the ceiling where the market is trading at the time.

Based on previous market moves in reaction to this news, it was found the market moves an average of 30 pips. Each spread should have a profit potential of $15 or more for a combined $30 or more profit potential. Stops should be placed 60 pips above and below the entry point. Below is a chart showing the profit scenarios based on the moves of the market and where it is at settlement.

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Once the news is released, the market will make its move and then tends to pull back. Maximum profit happens when the market pulls back to center between the spreads at settlement.

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