Tax Playbook · Investment tax wins
Borrow with box spreads
Sometimes you can borrow money through the stock market instead of a bank. You place one options trade called a box spread, and it locks in an interest rate for a set amount of time, like a short loan with a fixed price. In early 2026, people borrowed this way for about 4% a year. So on a $50,000 loan for one year, you would pay about $2,000 of interest instead of about $3,500 at a broker's 7% margin rate.
Good for: For investors with an options account who want to borrow cheaply for a known length of time.
Learn the basics
- OIC — Box spreads for borrowing or lending cash (PDF)
- IRS Form 6781 — Section 1256 gains and losses (PDF)
Recent articles & guides
- Cboe / Global Derivatives — SPX box spread FAQ (PDF)
- Grow Your Pile — Beating T-bills with the box trade
- Guide: How to borrow money at US Treasury rates with box spreads
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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.