The taxation of derivatives and financial products has developed in an uncoordinated and piecemeal fashion. Tax rules have largely been enacted in response to what the government has perceived as ...

Derivatives traders could be positioning for volatility in the bond market before the Federal Reserve’s policy update on Wednesday. An analyst at Susquehanna International Group noted one options ...

Volatility has been the dominant theme in financial markets lately. As uncertainty around COVID-19 and its impact on the economy deepens, markets have been swinging wildly. We’ve seen the S&P 500 ...

The financial markets have experienced strong volume growth in the short- dated index option arena. This paper explores the performance of short-dated index options versus the subsequent price move in ...

A straddle can be considered a volatility spread, as the trader who puts on the straddle is speculating on the volatility, or degree of movement of the underlying, not necessarily the direction of ...

Buying a straddle profits from significant price swings regardless of direction. Selling a straddle profits when the stock price remains stable near strike price. Straddle buying is risky before ...

Do you believe a stock is set to move sharply in the next few days, weeks or months? You don’t have to guess the direction if you initiate a strangle or a straddle. These options trading strategies ...

With the stock market at record heights, many investors own highly appreciated stock. With the federal capital gains tax rate almost 60 percent higher than just a few years ago and the possibility of ...

Is there a place for derivatives in tax-loss harvesting? Yes. As we discussed in Part I,[1] losses that are appropriate for tax-loss harvesting can be generated from a wide range of capital assets, ...