Access liquidity—without selling, taxes, or high borrowing costs.
A lower-cost, tax-advantaged borrowing strategy - no payments until maturity, up to five years.
A More Efficient Way to Borrow
Access institutional pricing typically unavailable to individuals
Source: Bloomberg October 29, 2025. https://www.bloomberg.com/news/articles/2025-10-29/wall-street-options-trick-becomes-new-fintech-lending-hack
Using the options market, Bootpack helps clients access a more efficient approach to borrowing.
These strategies - often referred to as box spread loans (“BSLs”) - allow clients to access liquidity in their taxable portfolios without selling long-term investments.
Historically utilized by hedge funds and ultra-wealthy family offices, this financing method offers attractive interest rates, generally around SOFR +20-30 basis points, currently 4%-4.5%.
These portfolio loans are highly favorable compared to traditional margin loans, which typically charge up to 12%.
Click SyntheticFi link for current rates:
How Clients Utilize Box Spread Loans
Debt
Refinancing
Replace high-rate HELOCs, credit cards, or mortgages with a single lower-rate loan.
Real Estate
Bridge Financing
Fund a down payment or pay cash for a new property before selling your current home.
Real Estate
Purchases
Finance a home purchase above the $750K mortgage exemption to lower the overall cost of purchase, and get tax benefit.
Home
Renovations
Finance major remodels at rates significantly lower than traditional HELOCs.
Large
Purchases
Lower than traditional rates for buying vehicles or businesses.
Capital
Calls
Fund private equity or real estate commitments without disturbing public market positions.
Estate
Planning
Borrow long-term and pass the portfolio to heirs with a step-up in basis to manage capital gains.
Advantages of Box Spread Loans
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Lower Borrowing Costs
Typically, SOFR + 20–30 bps. Today 4.0-4.5% depending on duration — far below traditional options.
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No Monthly Payments
Like a zero-coupon bond — interest accrues and is due only at expiration, up to five years out.
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Tax Advantages
Interest paid is treated as a capital loss for tax purposes — a meaningful advantage for taxable accounts.
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Roll or Repay on Your Terms
Pay off entirely at expiration or roll forward into a new position. No forced sale of assets.
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Keep Your Portfolio Intact
Your portfolio keeps compounding. No capital gains triggered, no disruption to your long-term plan.
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OCC-guaranteed
Trades are cleared by the Options Clearing Corporation, minimizing counterparty credit risk.
Comparison to Other Loans
| Box Spread Loans | Standard Margin Loans | Mortgages to $750K | HELOCs | Personal Loans | |
| Typical Rates | ~4% | 5-12% | 6.50% | 7% | 12%+ |
| Payment Frequency | At Maturity | Monthly | Monthly | Monthly | Monthly |
| Tax Benefits | Capital Loss | Interest Expense | Mortgage Deduction up to $750K. None thereafter. | Varied | None |
| Duration | 1 Month to 5 Years | Open-ended | 10-30 Years | Revolving | 2-7 Years |
| Loan Type | Typical Rates | Payment | Tax Benefits | Duration |
|---|---|---|---|---|
| Box Spread Loans | ~4% | At Maturity | Capital Loss | 1 Month – 5 Years |
| Standard Margin Loans | 5–12% | Monthly | Interest Expense | Open-ended |
| Mortgages | 6.50% | Monthly | Deduction up to $750K | 10–30 Years |
| HELOCs | 7% | Monthly | Varied | Revolving |
| Personal Loans | 12%+ | Monthly | None | 2–7 Years |
The Loan Process with Bootpack
Set Terms: We work with you to determine the right loan size, type and duration.
Connect Account: Bootpack links your Charles Schwab account with our strategic partner, SyntheticFi.
Execute Loan: SyntheticFi structures and executes the box spread in the options market.
Receive Proceeds: Cash is transferred directly from your brokerage account to you, no asset sales required.
Repay or Extend: At maturity, you can repay the loan or roll it forward. No interest is due in the interim.
Frequently Asked Questions:
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Both, depending on your situation. Floating-rate structures can function like a line of credit—offering the flexibility to draw and repay capital over time without needing to precisely time the loan.
For clients with more defined needs, fixed-rate structures are often more appropriate—particularly when the timing is known or for longer-term uses such as real estate purchases or other planned liquidity events.
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In theory, clients may borrow up to 50% of equities and ETFs, 70% of fixed income holdings, and up to 90% of U.S. Treasuries. For portfolios exceeding $200,000, borrowing capacity on equities and ETFs may increase to as much as 85% under portfolio margin.
In practice, we take a more conservative approach. To reduce the risk of a margin call during periods of market stress, we generally recommend borrowing no more than 25–30% of total portfolio value.
The minimum loan amount is $10,000.
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SyntheticFi charges a small management fee.
Bootpack does not charge any additional fees for arranging or managing these loans.
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While box spread loans can be executed by experienced options traders, we strongly advise against attempting them without the right expertise and infrastructure. Access through Bootpack requires being a client, as we facilitate these loans via our partnership with Schwab and SyntheticFi, providing the execution, oversight, and risk management needed to do it properly.
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Box spread loans are structured using SPX index options, which are treated as Section 1256 contracts. This means the borrowing cost is typically realized as a capital loss (not interest), with 60% treated as long-term and 40% as short-term, regardless of holding period.
These positions are also marked-to-market annually, so gains or losses are recognized each year, even though the interest isn’t due until maturity.
This structure can be more tax-efficient than traditional borrowing, but treatment depends on individual circumstances—so we coordinate closely with your CPA.
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The onboarding process typically takes about two weeks. The first step is getting your Schwab account approved for options trading. Once approved, we connect your account to SyntheticFi through a managed account agreement, enabling execution and ongoing management of the strategy.
What are the risks?
Margin Call Risk
Similar to traditional portfolio loans, box spread loans are collateralized by your portfolio. A sharp market decline could trigger a margin call. We typically recommend borrowing no more than 25–30% of portfolio value to mitigate this.
Rate Risk at Renewal
If you roll the loan at expiration, the new rate will reflect prevailing SOFR at that time. Rates could be higher or lower than your original term.
This strategy involves derivatives and is best suited for experienced investors with taxable portfolios.