What Is an Arbitrage Opportunity in Options Trading? ⎊ Path

What Is an Arbitrage Opportunity in Options Trading?

An arbitrage opportunity in options trading is a situation where a trader can make a risk-free profit by simultaneously buying and selling related assets that are mispriced relative to each other. For example, if an option's premium is less than its intrinsic value, arbitrage exists.

How Does Selling an Option Differ from Buying an Option in Terms of Risk Profile?

What Is ‘Synthetic Short Selling’ Using Futures and How Is It Used in Arbitrage?

How Do Arbitrage Opportunities Arise from Discrepancies in the IV Surfaces of Different RFQ Providers?

How Can a Trader Use the Volatility Smile to Inform a Crypto Options Trading Strategy?

How Can an Option Trader Profit from a Mispriced Implied Volatility?

In Options Trading, How Is an Arbitrage Opportunity Similar to a Stablecoin Peg Deviation?

How Can High Transaction Fees on L1 Prevent the ‘Arbitrage’ Necessary to Keep L2 Derivatives Priced Correctly?

What Is the Risk-Free Rate Assumption in Cash-and-Carry Arbitrage?