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Tax straddle |
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Tax straddleTechnique used in futures and options trading to create tax benefits. For example, an investor with a capital gain takes a position creating an artificial offsetting loss in the current tax year and postponing a gain from the position until the next tax year.Tax straddle Similar MatchesCovered straddleCovered straddleAn option strategy in which one call and one put with the same strike price and expiration are written against each 100 shares of the underlying stock. Example: writing 1 XYZ Sep 50 call and 1 XYZ Sep 50 put, and buying 100 shares of XYZ stock. In actuality, this is not a fully 'covered' strategy because assignment on the short put would require purchase of additional stock. Calendar Straddle or CombinationCalendar Straddle or CombinationSee Calendar Spread. StraddleStraddlePurchase or sale of an equal number of puts and calls with the same terms at the same time. Related: Spread. Covered Straddle WriteCovered Straddle WriteThe term used to describe the strategy in which an investor owns the underlying security and also writes a straddle on that security. This is not really a covered position. Covered StraddleCovered StraddleAn option strategy in which one call and one put with the same strike price and expiration are written against 100 shares of the underlying stock. In actually, this is not a "covered" strategy because asignment on the short put would require purchase of stock on margin. This method is also know as a covered combination. Further SuggestionsstraddleShort straddle |
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