Volatility traders, a huge day for trading is upon us! Big news coming with:

- PPI (producer price index) 🇺🇸
- Unemployment claims 🇺🇸

Unlike CPI, Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation.

In short:

PPI: what the factory charges the store
CPI: what the store charges the consumer

Unemployment Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.

We should also note that the geopolitical threats between Iran and the USA have caused equity markets to go down by 1%, $BTC by 2%, $ETH by 4%, and other alts by 10%.

Trade strategies

There are many ways you can trade events like this with directional bets, or even volatility bets.

For instance, with a report stronger than forecast, that is usually bearish for the dollar (inflation is increasing) which historically is bullish for risk on assets, we can capitalize on this by buying calls.

On the contrary, if the data report comes out weaker than forecast, that would signify a strengthening dollar (inflation slowing down) historically causing risk on assets to dump. In this case, we can buy put options here to get leveraged exposure to markets here.

Finally, you can always bet on volatility by purchasing both calls and puts, positioning yourself to profit in case the market takes an aggressive direction in either way!

Trade triple-digit leverage 0dte options on IVX

Carpe Diem 🪃