Iron Condor Trade For Canadian Consumer Pricing Reports

Many reports seem to have a report and then an accompanying core report. They usually come out together. Consumer pricing is one of those reports. The Core Consumer Price Index for Canada measures the change in the price of goods and services purchased by consumers but it excludes some items in order to get a very clear trend. The Core report excludes the eight most volatile items that can distort the trend. The reports come out Friday, October 23, 2015 at 8:30 AM ET and give day traders an opportunity to trade the USD/CAD.

With news trades, it’s difficult if not impossible to know which way the market will go and how it will react. Therefore, a strategy like an Iron Condor that can profit whichever way the market moves is an advantageous one. Based on analysis done on market reaction after 12 - 24 previous reports, it was found that the USD/CAD market tends to react after the report and then pull back. The recommended profit potential is $30 or more.

Enter As Early As 8:00 AM ET For 10:00 AM ET Expirations

For this Iron Condor setup and while consulting a USD/CAD chart, you trade two Nadex USD/CAD spreads. You can enter as early as 8:00 AM ET for 10:00 AM ET expirations. Buy a spread below the market with the ceiling being where the market is trading at the time and sell a spread above the market with the floor being where the market is trading at the time.

You can open the spread scanner and see the available spreads. The spread contracts are in the middle with the Risk/Reward listed on the far left for selling the contract and the far right for buying the contract. Below you can see an example of the spread scanner listing USD/CAD spreads.

To view larger image click HERE.

Find your spreads with the correct floor and ceiling parameters. Be sure they have a combined reward potential of $30 or more. The market will most likely make a move after the release of the reports and then pull back. One side may profit, then you can leave the other side on to give it time to play out and profit as well. Once the market has moved approximately 30 pips up or down that will be your break-even point, depending on your exact entries. At a move of 60 pips up or down the trade is at its 1:1 risk reward ratio. Again, this is also depending on your exact entries.

To learn more on how to trade Iron Condors, the news or other strategies, and to be able to access the spread and binary scanners, go to www.apexinvesting.com. Nadex is a US based, CFTC regulated exchange listing binaries and spreads which can be traded from 49 different countries.