Getting interest through SPX boxes

[FSU]

Volatility, theta, just 2 of the risks that come to my mind. It's a Strangle so that means it will only be profitable if the option price moves more than what you've paid for them. Even if they become ITM, you still lose the option premium that you paid for them. We are already in Dec. you think the price is going to move that much in just one month? If the prices don't move much, whatever you earned in "interest" will all be given back.

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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.

 

[JSOP]

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.

Yeah I got it. Thanks.