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by divbzero 1457 days ago
Tax straddles—now illegal—is a new concept to me. A couple old articles about it from New York Times:

Looking for Tax Losses in Commodities (1977) https://www.nytimes.com/1977/12/11/archives/investing-lookin...

I.R.S. Wins On Tax Straddles (1982) https://www.nytimes.com/1982/03/10/business/irs-wins-on-tax-...

1 comments

Interesting, this is probably why I never heard of straddles in a futures context

They are wildly popular in the options (including futures options) market, but what is described here would be called a calender spread or an unbalanced strangle of some sort. No tax benefits from closing long dated contracts early aside from losses offsetting the gains