The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “What is an arbitrage opportunity?” An arbitrage opportunity is nothing more than a transaction or a series of transactions in which you generate a profit without taking any risk. And so, they are far and few between because many arbitrage opportunities get found very quickly and then the trading edge or the arbitrage edge starts to disappear as more and more people start to flood the market. But to give you an example of this… And I think that there is still potentially an opportunity to do this in small cases during expiration week, in particular, during expiration day to generate a profit through an arbitrage type trade following some inverted positions. Again, this doesn't mean necessarily that you take zero risk, but probably as close to zero risk as you could potentially make with a trade. Here's an opportunity… And I've mentioned this before on Facebook Live. I don't k