Interview w/ Kim Klaiman – Strategies for Buying Options Ahead of Earnings

Check out our interview with Kim Klaiman as she discusses her strategy for buying long straddle before earnings.
Interview w/ Kim Klaiman – Strategies for Buying Options Ahead of Earnings
Kirk Du Plessis
Mar 3, 2015

In this session of The Option Alpha Podcast we talk with long-time trader Kim Klaiman from SteadyOptions.com. As you'll hear in this interview, Kim's goal is to trade a variety of non-directional trades with low correlations.

One topic that we dive into a little deeper is the strategy of buying straddles pre-earnings to profit from the rise in implied volatility. And while I personally prefer to trade the IV crush, you'll hear Kim's take on how his back testing research has found some likely candidates where IV does consistently rally ahead of earnings.

In Today's Show, You'll Learn About:

  • Why over time his strategy has evolved into mainly non-directional strategies like iron condors and straddles.
  • Thoughts on position sizing and how many trades to have on at one time.
  • What he looks for when buying options ahead of earnings.
  • His strategy for taking profits and managing risk associated with his trades.
  • A quick case study in a recent NKE earnings trade he made.
  • Why the trading timeline on his earnings strategy is generally short (5-10 days).
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