Basically, a “successor position” is a new straddle position that is acquired within 30 days before, or 30 days after, the original position was disposed of at a loss and that replaces that original ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...

The straddle is an options trading strategy, so named for the shape it makes on a pricing chart; your position literally “straddles” the price of the underlying asset. With the straddle, you trade on ...

(2) If the mixed straddle also qualifies as an “identified tax straddle,” the owner may elect (subject to the conditions described in (1), above) to exclude the IRC Section 1256 contract (or contracts ...

If you're new to options trading, you might be confused by the many terms, such as vertical options, straddles, and strangles. The following article will introduce you to each type and explain why ...