Investors with sizable taxable investment accounts and a cash need, seeking $250k+ of credit.
Helping investors with concentrated stock positions diversify using their shares as collateral, aiming for better tax outcomes on the underlying position.
Investors seeking different rates and more flexible terms than traditional loans.
Whether you’re an entrepreneur funding a new venture, navigating a home transition, or simply seeking short-term liquidity without negative tax consequences, we can help you put your portfolio to work as a competitive borrowing solution.
A box spread is a combination of four option contracts—two calls, long and written, and two puts, long and written—structured to result in a known value at expiration.
Selling a box spread delivers a cash credit to the account today.
The known value of the box, owed on the expiration date, whatever the underlying position has done in between.
The difference between the two is the cost of the credit, fixed from day one and priced by the options market.
| Underlying | Current price | Synthetic short | Synthetic long | Cash inflow | Payment at expiration | Box spread loan interest |
|---|---|---|---|---|---|---|
| SPX | $6,000 | $2,952 | −$2,000 | $952 | $1,000 | 5.0% |
The examples presented above are for conceptual, illustrative purposes only and not the return of any actual investments. This illustration does not include management fees, broker-dealer commission, exchange fees, bid-ask spreads, etc. This is not investment advice.
*The financing rate and the payoff at expiration apply only if the box spread is held until expiration, and do not reflect the results if it is closed early.
**Be sure to consult with a tax professional before implementing any investment strategy.
The cash settlement value of an S&P 500 Index option box spread at expiration is backed by the Options Clearing Corporation (OCC), which significantly reduces counterparty risk. Because of that added security, financing rates on box spreads, for example, tend to price very close to short-term US treasury rates.
| S&P Global credit rating | S&P Global outlook | |
|---|---|---|
| Options Clearing Corporation (OCC)* | AA | Stable |
| United States sovereign debt** | AA+ | Stable |
These are OCC ratings and not the credit rating for Aptus Capital Advisors, LLC. *As rated by S&P Global Ratings as of 2026. **As rated by S&P Global Ratings as of 12/31/2025.
A box spread loan can lock in a fixed borrowing cost and a defined repayment amount from day one, rather than using a floating interest rate like a margin loan or securities-backed line of credit.
| Aptus Box Spread Loans | Margin loan / SBLOC | |
|---|---|---|
| Borrowing cost | Fixed at the outset | Floating, repriced by the custodian |
| Repayment amount | Known on day one | Depends on the rate path |
| Rate driver | Options market; typically tracks short-term Treasuries | Custodian’s schedule |
| Interest treatment | Capital loss, 60% LT / 40% ST | Deductible only against net investment income |
| Interest accrual | Compounded yearly | Compounded daily |
| Bank credit check | None | None |
| Collateral | Existing holdings, nothing sold | Existing holdings, nothing sold |
Structural comparison only. The above is the intended structure of the Box Spread Loans strategy; each loan is designed on the investor’s facts, circumstances, and needs and may vary. Current pricing, minimums, and fee schedules are available from your Aptus consultant.
Aptus was built on options-based strategies. The same portfolio managers who structure our overlays structure and execute every box spread.
Box spreads have long been used by institutional investors as an efficient, low-cost financing tool. Our goal is to make this institutional solution accessible to a wider group of investors.
Aptus will continue to roll the credit line at expiration unless otherwise instructed, so the credit renews without the client re-papering a loan.
Every trade and every roll is communicated when it happens, with direct access to the team running the position.
The examples presented above are for illustrative purposes only and not the return of any actual investments. Actual interest rates may vary at the time of execution. Actual results of individual investors will differ due to many factors, including individual investments and fees, client restrictions, different facts and circumstances, and the timing of investments and cash flows.
Call options give the owner the right to buy the underlying security at the specified price within a specific time period. Put options give the owner the right to sell the underlying security at the specified price within a specific time period. A box spread is a combination of option contracts structured to deliver a known value at a specific future date.
Investing involves risk. Options involve risk and are not suitable for all investors. Please refer to OCC’s Characteristics and Risks of Standardized Options and Aptus Capital Advisors’ ADV, which includes information on Aptus Capital Advisors’ services, specific Risk Statements, and Disclosures. Principal loss is possible.
Information presented is for educational purposes only. It is for informational purposes only and does not constitute a complete description of our investment services or performance. This material does not constitute financial, legal, or tax advice, or a recommendation to buy or sell any security. All investments involve risk and unless otherwise stated, are not guaranteed. Each solution is based on facts and circumstances that are designed to each individual’s use case and may vary from case to case and need. Be sure to consult with an investment & tax professional before implementing any investment strategy.