Affluent Investors Are Using Options Math to Borrow on the Cheap

Affluent Investors Are Using Options Math to Borrow on the Cheap(bloomberg.com)

1 points by imichael 200 days ago | 4 comments

stargrazer 200 days ago |

The title has nothing to do with the link. Correct link?

Probably meant this: https://www.bloomberg.com/news/articles/2025-10-29/wall-stre...

'The trade, dubbed a “box spread,” carried a kind of mystique. By combining two opposing options positions — one bullish, one bearish — Yang built a strategy that mimics a fixed-rate loan: upfront cash now, repayment at a set date, and a locked-in cost in between.'

treetalker 200 days ago | |

It's a type of arbitrage, no?

parodysbird 200 days ago | | |

Not entirely; it's doesn't necessarily involve taking advantage of price discrepancies in different "markets" of the same asset, or contract so to speak in this case, and so it doesn't necessarily lead to "guaranteed" profit in the way that arbitrage does.

cjbenedikt 200 days ago | | |

https://www.investopedia.com/terms/b/boxspread.asp