NokiMo
Ben needs your money
Ben needs your money

patreon


ben shows how to execute an arbitrage With no brain

Comments

Yo just saw this. In general trading the monthlies is probably better as you're paying less commissions and the liquidity in the weeklies means getting filled will take longer and be harder. In reality it's the same monitoring requirement with less execution work putting trades on. To your question about the short, you only want to have that hedge on when the price is below the IBIT spread's long call strike, which means you should never really be losing money on it in theory (in practice you'll probably get chopped around on it trading in and out of it losing some money)

Ben needs your money

I wanted to ask in regards to this trade, but like you previous discussed, if one side of the leg gets closed while the other remains open, I can open a short on bitcoin to help hedge this. What's stopping the position from going above and I end up losing more on the short? Additionally, on lower capital, could I trade ibit weekly spreads with the polymarket weekly price predictions? I realize there is lower liquidity, but I'd be able to close positions quicker without having to constantly stare at the trade as long.

Rezzy

I take it you're wondering why those bids and asks are where they are? Those are just the places where people want to buy and sell. Anyone can come in and say "I want to buy at 40 so I'll bid 40" or "I want to sell at 100 so my ask 100". If you're a trader and think the ask price is too low, you might buy the ask with the hopes of selling to someone else later at a higher price. It's just a big auction where buyers and sellers meet.

Ben needs your money

Could you make a video about the best bid and ask for a normal US stock option price, especially for the options with 0-3 DTE? I am just wondering how would you determine the best bids/asks without having multi-layer bid ask spread knowledge

Studio 64

No minimum other than I guess needing the capital to put a 1 lot call spread on (~$10-100) if you're doing the full arb. The smaller the size you need to get filled the easier it is/higher the % return, because it's fairly easy to fill 1000 shares near the bid on Polymarket, but once you get up into the 10s of thousands it takes longer and is harder

Ben needs your money

what's the minimum amount of capital required for this

Dozie

U gotta get on that mexico internet...

Ben needs your money

Sardines and almonds?

Ben Tibbey

Mountain time? Guy's living in the middle of nowhere and getting 10x less lag on Polymarket than I do

Mikhail Soumar

Yea I’m just guessing, but it wouldn’t surprise me if they’re arbing against other crypto exchanges that allow for 24/7 trading and more clean replication of that bet. If they’re using options to hedge as I am for example, they can just buy a 120k strike call spread on binance and have 24/7 access to sell the spread if the Poly leg hits max loss. You could do that too you’d just have to be setup to trade there.

Ben needs your money

You mention that the market makers are doing a more simple arb against us somewhere else, could you explain more of what you mean by that?

Gage B

Hahha first mtfs!!!

Emrah


Related Creators