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Can Cryptocurrency Derivatives Be Part of a Mixed Straddle?

Yes, a regulated Section 1256 crypto derivative and an offsetting non-1256 crypto position (like spot or unregulated option) form a mixed straddle.
Greeks.Live21.11.25

Can Cryptocurrency Derivatives Be Part of a Mixed Straddle?

Yes, if a trader holds a Section 1256 crypto derivative (like a regulated Bitcoin future) and an offsetting non-1256 position (like a spot Bitcoin holding or an unregulated crypto option), this would constitute a mixed straddle. The trader can then choose to make one of the mixed straddle elections to simplify the tax treatment.

Does Trading on a non-US Regulated Exchange Qualify for Section 1256 Treatment?
What Is the Main Advantage of Electing the Mixed Straddle Account?
What Happens If a Trader Does Not Make a Mixed Straddle Election?
Which Specific Derivatives Are Typically Classified as Section 1256 Contracts?

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