'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•3mo ago
It's a type of arbitrage, no?
parodysbird•3mo 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.
stargrazer•3mo ago
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•3mo ago
parodysbird•3mo ago
cjbenedikt•3mo ago