Another popularly used tax avoidance device before 1981 was a straddle, in which an individual would 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 at the same time. Thus, when the individual had a gain on the first contract, he or she generally would have a loss on the second. What the individual gained on one, he or she lost on the other. Can you think how you could use a straddle to postpone taxes? (Hint: Consider the consequences of selling one of the securities on December 31, and the other on January 1.) 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?