27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Evening trading can be a challenge sometimes finding moving markets. When news is scheduled for release in Australia, it can cause some movement on the AUD/USD making for good trading opportunities. Wednesday, June 1, at 9:30 PM ET, the Australian Bureau of Statistics will release Retail Sales and the Trade Balance numbers. Both reports are marked as high impact on news calendars. Retail Sales tells of the change in total retail sales, an important indicator for primary spending, and the Trade Balance gives a percentage change in the difference in value between imported and exported goods and services for the reported month.
The average move for AUD/USD for this news is 30 pips, and then the market tends to pull back. An Iron Condor strategy profits when a market makes a move like that. To set it up, buy a Nadex AUD/USD spread with the ceiling being where the market is trading at the time. At the same time, sell a Nadex AUD/USD spread with the floor being where the market is trading at the time. The profit potential for each spread should be approximately $15 or more.
Buying below the market and selling above the market with this strategy, the desired result is for the market to pull back to center between the spreads after any move the market makes to receive full profit. Entry can be as early as 9:00 PM ET for 11:00 PM ET expiration.
With a $30 or more combined reward potential, the market can move up or down as far as 30 pips and the trade will still be breakeven. If it settles anywhere between those points, then there is profit. Finding the right spreads is easy using the spread scanner designed for trading Nadex spreads. The tool is used by traders to see all the essential information on a spread at a glance in one window. Below is an example of the spread scanner.
To view a larger image click HERE.
Risk is capped because spreads have floors and ceilings. Traders cannot profit or lose past the floor or ceiling limits. Risk can be managed further with this strategy using stop limit orders. Place your stops at the 1:1 risk/reward ratio points where the market would be if it moves 60 pips up or down.
Free education and access to the spread scanner is available at www.apexinvesting.com.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
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