What is the straddle-by-straddle identification election?

You can make this election for mixed straddles by clearly identifying each position by the earlier of the close of the day the identified mixed straddle is established or the time the position is disposed of. See the Form 6781 instructions  for more details regarding this election.

Note: You can NOT make this election for any straddles for which you already chose to use the mixed straddle election or if any of the positions of the straddle are included in a mixed straddle account.