Non-Directional Trading at its Best
Being a software engineer and an options trader, I am naturally intrigued by the kinds of trades in which Kim Klaiman routinely engages. There is something very scientific and mathematical about his approach that pleases my engineering sensibilities. Unlike most traders, who are constantly (and usually futilely) attempting to predict the direction of the market, Mr. Klaiman has perfected a technique by concentrating on non-directional trades that reduces most market directional risk . Mathematically exploiting a statistical oddity that occurs over and over again during the time approximately a week before a company's earnings announcement, Mr. Klaiman consistently earns profit upon profit. Those lucky enough to be members of his site, SteadyOptions.com, (I say "lucky" because he regularly limits the number of new memberships) are privy to his thoughts and experiences. Members are with him from his earliest consideration of a trade, to its execution, and finally to its ultimate closing. Each of his trades are fully documented and immediately available for members to duplicate themselves. And better yet, each member knows why he or she is making that trade; nothing is hidden about the reasons for that trade.
One of the things that distinguishes Mr. Klaiman's service from others is that each of his trades are real, filled orders--not hypothetical orders. Thus his successful trading becomes your successful trading since there is no reason you can't match his trades. And, at the same time, you are learning to become a better trader since full discussions, sometimes to the most minute detail, occur regularly in separate topics areas for each trade. Members may ask questions at any time, from the most basic newbie-type question (e.g., How do I roll a position to the next strike?) to extremely advanced areas (e.g., How does the ratio of risk factors vega and theta affect entry into a particular trade?). Indeed, many of the members of SteadyOptions.com admit that the small monthly membership fee is more than worth it simply for the education they are receiving--apart from the profitable trades of which they partake from the service.
These earnings-related trades are a big area of his service, but by no means the only area. Mr. Klaiman continually stresses the importance of an overall balanced portfolio taking into account many of the quantifiable risk factors (i.e., the Greeks). Since earnings trades profit from increasing implied volatility, Mr. Klaiman balances these trades with broad-market trades that have risks in the opposite direction. Doing so goes with his over-riding approach of small, steady, predictable profits in contrast to the "lottery ticket" approach of many options traders. And his performance demonstrates this. As of 10/13/2012 (the time I am writing this), his ROI for 2012 is 133%. For details, go to his web site.
A prolific writer of his craft, Mr. Klaiman has written many articles spelling out his trading approach. These articles were my initial introduction to Mr. Klaiman and his trading style. Many of his articles are found here at the Seeking Alpha site: http://seekingalpha.com/author/steadyoptions/articles .
Those serious about improving their trading and increasing their profits in a steady way really do owe it to themselves to become familiar with Kim Klaiman's important work.
This review is the subjective opinion of an Investimonials member and not of Investimonials LLC
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