Japanese Housing Starts News Is A Trade Opportunity

A trade opportunity is coming up on Wednesday, April 29, at 11:00 PM ET to set up an Iron Condor for a 1:00 AM ET scheduled release. The Ministry of Land, Infrastructure, Transport and Tourism for Japan releases the change in the number of new residential buildings that began construction within the last month. Housing construction is a huge indicator of economic health due to its ripple effect throughout the economy. Construction creates jobs and purchasing for materials.

Nadex Can Be Traded From 49 Countries

When this report is released the market will react and then pull back. For this kind of anticipated move an Iron Condor strategy can be set up using Nadex spreads. Nadex stands for North American Derivatives Exchange and offers spreads and binaries to trade numerous markets including indices, currencies, and commodities. In addition, Nadex can be traded from 49 countries. For this trade you will want to find and enter two Nadex USD/JPY spreads, for a $30 or more profit potential, at 11:00 PM ET for 7:00 AM ET expiration.

Buy the lower spread with its ceiling where the then current underlying USD/JPY market is trading, and sell the upper spread with its floor where the then current underlying USD/JPY is trading. If you buy the lower spread for around $15 and sell the upper spread for around $15, and the floor and ceiling are where they need to be, you will have an Iron Condor setup for around a $30 profit potential.

Market Can Move 60 Pips For A 1:1 Max Risk Reward Ratio

You can leave your trade on until expiration to give the trade plenty of time to play out. For a 1:1 max risk reward ratio, the market can move up or down 60 pips without pulling back. However, through analysis it is anticipated the market will pull back. To make max profit after the market reacts, it needs to pull back to the center between the two spreads. The closer to the center, the higher the profit. If you are unable to find spreads that make up a $30 profit potential, then don’t take the trade. If you are able, and you want more profit possibility, then you can put more spreads on. Just be sure to have the same number of spreads on each side of your Iron Condor. To learn more about Iron Condor strategies, and news events to trade, go to www.apexinvesting.com.

Be Aware of JPY Monetary Policy Statement occuring at the same time as this trade.  Use Caution!