HomeDefinitionsCompareDebt Tax straddleThe financial definition for Tax straddle:Technique 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. Similar MatchesCalendar Straddle or CombinationCalendar Straddle or CombinationSee Calendar Spread. 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. 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. Further SuggestionsShort straddleStraddle Click to compare definitions of Tax straddle Click to view definitions beginning ta |