KIM Straddle Strategy
KIM (Kimco Realty Corporation), in the Real Estate sector, (REIT - Retail industry), listed on NYSE.
Kimco Realty Corp. (NYSE:KIM) is a real estate investment trust (REIT) headquartered in Jericho, N.Y. that is one of North America's largest publicly traded owners and operators of open-air, grocery-anchored shopping centers and mixed-use assets. As of September 30, 2020, the company owned interests in 400 U.S. shopping centers and mixed-use assets comprising 70 million square feet of gross leasable space primarily concentrated in the top major metropolitan markets. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 60 years.
KIM (Kimco Realty Corporation) trades in the Real Estate sector, specifically REIT - Retail, with a market capitalization of approximately $15.56B, a trailing P/E of 25.16, a beta of 0.99 versus the broader market, a 52-week range of 19.76-24.31, average daily share volume of 5.5M, a public-listing history dating back to 1991, approximately 717 full-time employees. These structural characteristics shape how KIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places KIM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. KIM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on KIM?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
Current KIM snapshot
As of May 15, 2026, spot at $22.98, ATM IV 193.70%, IV rank 100.00%, expected move 55.53%. The straddle on KIM below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this straddle structure on KIM specifically: KIM IV at 193.70% is rich versus its 1-year range, which makes a premium-buying KIM straddle relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 55.53% (roughly $12.76 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on KIM should anchor to the underlying notional of $22.98 per share and to the trader's directional view on KIM stock.
KIM straddle setup
The KIM straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With KIM near $22.98, the first option leg uses a $22.98 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KIM chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 KIM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $22.98 | N/A |
| Buy 1 | Put | $22.98 | N/A |
KIM straddle risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
KIM straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on KIM. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use straddle on KIM
Straddles on KIM are pure-volatility plays that profit from large moves in either direction; traders typically buy KIM straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
KIM thesis for this straddle
The market-implied 1-standard-deviation range for KIM extends from approximately $10.22 on the downside to $35.74 on the upside. A KIM long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current KIM IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on KIM at 193.70%. As a Real Estate name, KIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KIM-specific events.
KIM straddle positions are structurally neutral / high-volatility (long premium); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. KIM positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KIM alongside the broader basket even when KIM-specific fundamentals are unchanged. Always rebuild the position from current KIM chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on KIM?
- A straddle on KIM is the straddle strategy applied to KIM (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With KIM stock trading near $22.98, the strikes shown on this page are snapped to the nearest listed KIM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KIM straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the KIM straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 193.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KIM straddle?
- The breakeven for the KIM straddle priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current KIM market-implied 1-standard-deviation expected move is approximately 55.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on KIM?
- Straddles on KIM are pure-volatility plays that profit from large moves in either direction; traders typically buy KIM straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current KIM implied volatility affect this straddle?
- KIM ATM IV is at 193.70% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.