Straddle rule basics with a covered call
Basis Northwest registration opens Weds Feb 11
Mark your calendar…
Basis Northwest registration opens on Wednesday, February 11, 2026.
First 50 registrants: $479
After the first 50: $829
Keep in mind…
I’m working on a comparison of a variable prepaid forward contract with a two-option collar (plus a margin loan), which requires unpacking the straddle rules.
The straddle rules generally require deferring capital losses, which is the opposite of what tax-loss harvesting does (accelerating capital losses).
A covered call is a great toy for understanding the straddle rules, so I built a little visualizer to show how it all works.
