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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 Can a Violation of Put-Call Parity Create an Arbitrage Opportunity in Crypto Options?
How Does the Margin Requirement Differ for Buying versus Selling Options?
Why Is a Risk-Free Profit Guaranteed in a Successful Arbitrage Trade?
What Is the Risk of “Put-Call Parity” Being Violated in a Short Option Position?