Another popularly used tax avoidance device before 1981 was a straddle, in which an individual would at the same time sign one contract to buy a commodity (like wheat) at some future date, and another contract to sell the same commodity at a date shortly earlier or later. Thus, when she had a gain on the first contract, she generally would have a loss on the second. What she gained on one, she lost on the other. Can you think how you could use a straddle to postpone taxes? Prior to 1986, long-term capital gains were taxed much more lightly than short-term capital gains. Can you think how you could use straddles to take advantage of this difference?