Getting interest through SPX boxes

Discussion in 'Options' started by FSU, Dec 3, 2020.

  1. FSU


    I don't think you understand the position. This is a box (without selling the wings, the 200 puts and 5200 calls). There is no vol risk, there is no theta risk, you don't need any movement to make money. You pay 4995 today and it is worth 5000 at expiration. Its that simple. This is a simple interest rate play.

    On the off chance the market moves beyond these strikes you would make extra money since you didn't sell the wings of the box.
    #11     Dec 4, 2020
  2. JSOP


    Yeah I got it. Thanks.
    #12     Dec 4, 2020