Hi,
I was looking into credit spreads and I found many pricing mismatches like the one below.
LTP of 235: 31.25
LTP of 240: 38.85
I thought if I can buy 235 option and write 240, that trade will guarantee a profit of 2.60(7.60-5.00). But I then saw that the Bid price and Ask price were adjusted so that we can not profit from that difference.

My doubts:
1. I assume, "Every option for strike prices is driven by separate group of buyers and sellers. So the options price can not keep the exact strike price difference. Market makers try to bring them back to alignment but individuals 'fear' may keep creating the misalignment" - Is this true?
2. If it is true, Can retail traders profit them or the big players in the markets pocket these arbitrages?
Thanks.
Your assumption of every strike option prices are driven by separate group of buyers and sellers is not valid.
Arbitrageurs will be scouting for such opportunities to grab profits.They deploy bots to act very fast before anyone can manually analyze the presented opportunity.
Retail traders has no space in this options arbitrage segment.
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Thanks for answering. And about pricing, I am aware that option pricing includes options greeks and underlying stocks price. But I could see that, when I buy, I could only buy at the Ask price which is higher than LTP. There Im increasing the LTP just by buying. If I buy some 1000 lots, the asking price I reach will keep getting higher and at the time I finish buying, the LTP would be bigger no? Then how do you say, price is not driven by users??
What am I missing here?
Thanks.