>>94519268People can get considerably better rates for lending and borrowing money than banks typically offer by using box spreads.
For example, you can borrow $96,035 for 11 months at roughly 4.6% APR by doing the following trade.
Sell 1 SPX 19DEC25 4000 CALL
Buy 1 SPX 19DEC25 4000 PUT
Buy 1 SPX 19DEC25 5000 CALL
Sell 1 SPX 19DEC25 5000 PUT
The opposite trade lets you lend at similar rates, giving better returns than a CD.
This is also tax advantaged, so that borrowing costs and profits are treated as capital gains/losses rather than taxed as interest.
