PUBLIC LAW 97-34—AUG. 13, 1981
95 STAT. 325
"(B) ONE SIDE LARGER THAN OTHER SIDE.—If 1 or more positions offset only a portion of 1 or more other positions, the Secretary shall by regulations prescribe the method for determining the portion of such other positions which is to be taken into account for purposes of this section. "(C) SPECIAL RULE FOR IDENTIFIED STRADDLES.—In the case of any position which is not part of an identified straddle (within the meaning of subsection (a)(3)(B)), such position shall not be treated as offsetting with respect to any position which is part of an identified straddle. "(3) PRESUMPTION.—
"(A) IN GENERAL.—For purposes of paragraph (2), 2 or more positions shall be presumed to be offsetting if— "(i) the positions are in the same personal property (whether established in such property or a contract for such property), "(ii) the positions are in the same personal property, even though such property may be in a substantially altered form, "(iii) the positions are in debt instruments of a similar maturity or other debt instruments described in regulations prescribed by the Secretary, "(iv) the positions are sold or marketed as offsetting positions (whether or not such positions are called a straddle, spread, butterfly, or any similar name), "(v) the aggregate margin requirement for such positions is lower than the sum of the margin requirements for each such position (if held separately), or "(vi) there are such other factors (or satisfaction of subjective or objective tests) as the Secretary may by regulations prescribe as indicating that such positions are offsetting. For purposes of the preceding sentence, 2 or more positions shall be treated as described in clause (i), (ii), (iii), or (vi) only if the value of 1 or more of such positions ordinarily varies inversely with the value of 1 or more other such positions. "(B) PRESUMPTION MAY BE REBUTTED.—Any presumption
established pursuant to subparagraph (A) may be rebutted. "(d) DEFINITIONS AND SPECIAL RULES.—For purposes of this section— "(1) PERSONAL PROPERTY.—The term 'personal property' means any personal property (other than stock) of a type which is actively traded. "(2) POSITION.—
"(A) IN GENERAL.—The term 'position' means an interest (including a futures or forward contract or option) in personal property. "(B) SPECIAL RULE FOR STOCK OPTIONS.—The term 'position' includes any stock option which is a part of a straddle and which is an option to buy or sell stock which is actively traded, but does not include a stock option which— "(i) is traded on a domestic exchange or on a similar foreign exchange designated by the Secretary, and "(ii) is of a type with respect to which the maximum period during which such option may be exercised is less than the minimum period for which a capital asset must be held for gain to be treated as long-term capital gain under section 1222(3).
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