(1) Combining Straddles and Calendar Spreads ahead of Earnings (2) Second Talk

A major purpose of this group is to help people understand and trade strategies. People will not get there just by listening to speakers passively. We need active discussion, questioning, and arguing.
Let’s review and discuss and debate a topic broached last month (see https://www.youtube.com/@rdutraders) .

Kim Klaiman presented his approach to trading Straddles and Earnings Calendar Spreads together as a long-term endeavor. He has been doing it for decades. Do not worry if you missed that talk as we will recap it for you at the start.
Kim Klaiman explained his full strategy without unnecessary embellishments. The heart of his strategy could be described as: (1) Buy Straddles on selected stocks ahead of Earnings to profit on rising volatility (2) Also Buy Calendar Spreads on selected stocks before the announcement event, with both legs expiring before the event.
To make this all the more intriguing, some other advisors advise conflicting strategies.

We absolutely have some serious experts among our regular members trading related calendar and earnings strategies, so let’s get their reactions and their help in understanding I expect extensive comments that will add insight.

Also, a Quiz will be fun and help us Boost our Understanding. This is a way of launching extended discussions of these areas.
Easy:
* Does Klaiman use strangles and straddles for different purposes?
* Outside the earnings context, would a long straddle strategy be expected to make money on average in a flat market?
* Is there general agreement that long straddles make money overall as the earnings event approaches?
* Time spreads are vega positive. Does this means they would be expected to make money with the passage of time?
* Outside the earnings context, will a long straddle strategy overall be expected to make money on average in a flat market?
* There is general agreement that long straddles make money in earnings cycles
* Are Klaiman’s calendar trades exposed to a sudden margin increase when the near leg expires?
* Do Klaiman’s trades provide Black Swan Protection?
Hard:
* If it is true that Tasty Trade says that long straddles do not work, are they wrong or is Steady Options wrong, or can there be another explanation?
* Should we trust the impressive profit figures on the Steady Options Web Site?
* How much of a role does discretion play in this strategy and where does it come in?
* What suggestions do you have to improve this strategy?
These are just a sample start. We will have lots more by the time of the meeting, and you can bring your own too.

Beyond just understanding these strategies, the objective is to learn from varying points of view that will be expressed during the meeting. Nothing is ever black and white. I believe some will disagree with the previous speaker and that is fine and to be expected.

If you are within driving distance here in North Carolina, please try to attend in person at Oberlin Regional Library, 1930 Clark Ave, Raleigh, NC, on Monday Jan 5 at 6:30 pm ET. We need a decent turnout to keep getting access to the Library. If you cannot RSVP, just come without RSVPing.

If you cannot make it in person, the zoom link, thanks to Aeromir.com, will be https://us02web.zoom.us/meeting/register/jZbjcFYFRGWLF1K_TlTpTw .