Straddle
81Short straddle — A straddle in which one put and one call are sold. The New York Times Financial Glossary * * * short straddle ► a situation in which an investor sells both a call option and a put option on the same shares because they think that the share price… …
82tax straddle rule — The commodities straddle rule prevents a taxpayer from deferring income by requiring a loss on an identified straddle to be recognized when the offsetting position is closed. The straddle rules generally relate to intangibles such as rights to… …
83long straddle — Taking a long position in both a put and a call option. Bloomberg Financial Dictionary * * * long straddle ► a situation in which an investor buys both a call option and a put option on the same shares because they think that there will be a big… …
84covered straddle write — The 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. Bloomberg Financial Dictionary …
85back straddle vault — noun : a gymnastics straddle vault in which the performer passes the left leg over the right side of the buck or horse and the right leg over the left side and clears the appparatus backward to land in a position the reverse of the starting… …
86Long Straddle — A strategy of trading options whereby the trader will purchase a long call and a long put with the same underlying asset, expiration date and strike price. The strike price will usually be at the money or near the current market price of the… …
87calendar straddle or combination — See calendar spread. Bloomberg Financial Dictionary …
88calendar straddle — See calendar spread. Bloomberg Financial Dictionary …
89covered straddle — An 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 assignment on the short put would require… …
90tax 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… …
