Part II and Part III are for professionals.
I think the instruction I quoted above is pretty clear.
Further Instructions Form 6781.
"Don’t include in Part II a disposition of
any of the following.
• A position that is part of a hedging
transaction.
• A position that is part of a straddle if all
of the positions of the straddle are
section 1256 contracts."
In other words, for most run-of-the mill active investors who trade futures or options on futures,
this is of no concern.
@bradleyt
