Low volatility portrays Condor Spreads construction on USD/CHF

• ZEW/Credit Suisse Economic Sentiment Index: ZEW Economic Sentiment Index in Switzerland increased to -23.20 in April of 2015 from -37.90 in March of 2015 as reported by the Centre for European Economic Research (ZEW).
  
  
• UBS consumption indicator is scheduled to be released today.
  
  
• Swiss Inflation: The inflation rate in Switzerland fell further at -1.1% in April of 2015 from previous -0.9%.

In addition to the above events on current calendar Swiss trade balance for April is lined up for next week, it was recorded a trade surplus of 2525 CHF million in March of 2015 as reported by the Swiss Customs Administration.

Currency option strategy through Condor construction: USDCHF

We predict marginal upswings on daily charts with clear converging signals from RSI (14) and stochastic curves. Although there is no trace of drastic or dramatic movements on either side we still sense some sort of upward momentum.

So, here comes a multiple leg of option strategy for regular traders of this currency cross. A total of 4 legs are involved in the condor options strategy and a net debit is required to establish the position.

The trader can construct a long condor option spread as follows,

Selling a lower strike In-The-Money Call

Buying an even lower strike price In-The-Money Call

Selling a higher strike Out-Of The-Money Call

Buying another even higher strike price Out-Of-The-Money Call

Condor option strategy is best suited when the underlying currency is perceived to have low volatility.

Despite the traders who anticipate limited risk and non directional trend, this option trading strategy is structured to earn reasonable profits.