Instructions for DOMAIN and PORT

[CarsonBurke]

This is certainly not necessary, but it would be helpful to include basic instructions in the readme for what the DOMAIN and PORT values for the .env should be. (This would be helpful for me personally)

[hedge0]

Hi Carson, I typically used localhost:5000 for my domain / port, and interfaced with https://github.com/Voyz/ibeam to facilitate a gateway for the web api. Its been a while since I worked on the project. The reality is that most quotes you get from a broker are directly quoted by a market maker, so the bid ask spread wont accurately reflect the actual market supply / demand. I would highly suggest using the schwab api instead of the ibkr api to query options data, it doesnt require any complex pre initialization of data, and provides better api query responses. I've completely switched over to schwab for all future personal projects, and would recommend that you rewrite this application for schwab if you actually want to test it. IBKR also has very strict order submission criteria, which was causing a lot of my orders to get cancelled due to how far they deviated from the ibkr "fair market price".

[CarsonBurke]

Thank you, that is very informative

[hedge0]

No problem, let me know if you run into any issue. I'm fairly busy right now but I can often respond to questions at night. I would also focus on butterfly spread arbs since they are the most common and are (in theory) risk free once filled. The issue is that you likely wont ever actually get filled, since market makers aren't stupid. A butterfly arb on SPX might look something like: buying a 5925 call at 65.25, selling 2x 5930 calls at 60.80, and buying a 5935 call at 56.25. The credit from selling the 2x 5930 would be 121.6 - 121.5 from buying the 5925 and 5935 calls, netting a credit of 0.10 or $10. This implies an arbitrage because the trade should always produce a debit, so waiting till expiry would ensure you keep the premium. I typically like to model these trades on https://optionstrat.com/