Affluent Investors Are Using Options Math to Borrow on the Cheap
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Re: Affluent Investors Are Using Options Math to Borrow on the Cheap
#2The 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.'
Re: Affluent Investors Are Using Options Math to Borrow on the Cheap
#3The 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.'
It's a type of arbitrage, no?
Re: Affluent Investors Are Using Options Math to Borrow on the Cheap
#4The 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.'
It's a type of arbitrage, no?
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.
Re: Affluent Investors Are Using Options Math to Borrow on the Cheap
#5The 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.'
It's a type of arbitrage, no?