Articles
- WTF is this? Borrow, don't sell: the basic idea How borrowing against a stock portfolio works, why it's different from a credit card or home equity line, and when it makes sense.
- For options nerds Execution details: combo orders, bid-ask, and what to expect How a box spread loan actually gets opened — order types, broker requirements, expected slippage, onboarding timelines, and why most people hire a manager.
- For options nerds Rates, rolling, and the risks no one talks about Interest rate differential penalties, margin calls, liquidity of far-dated SPX boxes, and what actually goes wrong with box spread loans.
- For tax nerds The SALT torpedo: why $500K–$600K earners get a bonus tax break from box spreads How the SALT deduction phase-out under the One Big Beautiful Budget Act creates a hidden marginal rate surcharge between $500K and $600K income — and how a box spread capital loss can reverse it.
- For tax nerds How the IRS treats box spreads: Section 1256 and the 60/40 rule The statutory basis for box spread tax treatment — mark-to-market at year-end, 60% long-term / 40% short-term capital gains, Form 6781, and how this produces annual deductions on a balloon-payment loan.
- For options nerds The four-leg structure: what actually happens when you open a box spread A mechanics walkthrough of the box spread position: the four options legs, why they produce a fixed implied interest rate, and what happens at expiration.
- For tax nerds Short-term gains, long-term gains, or none: how your tax situation changes the effective rate The four-scenario analysis for box spread effective borrowing rates — how STCG, LTCG, both, or neither changes the after-tax cost of a 4% nominal loan.
- WTF is this? What is a synthetic loan, and why would I want one? A plain-English explanation of box-spread synthetic loans: what they are, how they work, and when they make sense.
- WTF is this? Who should (and shouldn't) use this A plain-English decision framework for determining whether a box-spread synthetic loan makes sense for a particular situation.
- WTF is this? Why selling stock to buy a house costs more than you think Capital gains taxes, the SALT torpedo, and why liquidating a portfolio to fund a purchase can cost far more than the sticker price suggests.