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Box Spread (Arbitrage)

Professional arbitrage strategy for risk-free profits.

Master

Market Outlook

market-neutral

Family

arbitrage

Capital Req

very-high

Risk Profile

neutral

Strategy Overview

Key characteristics and when to use

Structure

Bull Call Spread + Bear Put Spread

Greek Profile

Delta neutral, theta neutral, vega neutral

Characteristics

ArbitrageMarket-NeutralProfessionalRisk-Free

Profit & Loss Formulas

Mathematical breakdown

Max Profit

Strike difference - net debit paid

Max Loss

Net debit paid (if no arbitrage)

Breakeven

No breakeven (arbitrage strategy)