A Polymarket yes/no contract pays $1 if an event happens. You can rebuild that same payout synthetically using other instruments, like a sportsbook parlay or a crypto options spread that pays off in the same scenario. When the cost of building the payout that way differs from Polymarket's price for the same outcome, you buy the cheap version and sell the expensive one. The edge is pricing inconsistencies between fixed yes/no markets and continuous derivative markets.
Markets on Polymarket where polymarket-vs-sportsbook options-style synthetic rv is the natural play:
