Today we have the FOMC minutes being released. As most of you know, have a free ebook that identifies the market movement immediately after a market report. Immediately being defined as the 15 minute bar immediately after the report. Since I am not doing a live trading room this morning and we have a 2pm FOMC Minutes release, I wanted to go ahead and release this one portion of the report.
Each $ sign in the table below represents 50 ticks of movement. Accordingly, the largest mover for the Futures Market is Gold and for Forex it is EURUSD and GBPUSD.
FOMC Minutes – Expected Movement for Each Market
What’s the significance of knowing this information? Out of the Money Binary Options! For example, if I wanted to take an out of the money binary option, I now have the information needed to determine “how far” out of the money I can go.
Remember, Gold ends early (1:30 pm) so that eliminates Gold as a potential binary option because the report is at 2pm. However, I could do the Dow, Nasdaq, FDAX, EURUSD, or GBPUSD. On each one of these I could go up to 80 ticks out of the money (the average on these are 100 ticks). On the ES (mini S&P 500), AUDUSD, USDCAD, USDCHF, and USDJPY, I can only go out about 30 ticks (average is 50 ticks on these).
With this information, I can identify the potential out of the money binary option range for any market report! This allows me to lock in a lower risk trade and a higher risk to reward trade.