Sneakers Investing – Sep 27, 2021

Welcome to Sneakers Insider – FREE Version.

We use Moneyball tactics to discover sneaker arbitrage opportunities across the fractional platforms.

Note: Sneaker markets trade thinly and there typically aren’t any catalysts to cause the share price to snap to fair market value. So: (a) the assets could stay mispriced for a long time, (b) there may not be sufficient trading volume to sell all the shares you want to when you want to.

All data taken from the most recent sales on StockX.

Sneaker Arbitrage Opportunities

Every Monday, we compare the market cap for sneakers on the Otis Platform to the inferred value based on recent sales on sneaker trading platform StockX.

Every month, new sneaker releases pop up on the map with various resale values, with a handful at a decent margin above the retail price. Here are two examples from the final week of August:

1. Nike LD Waffle SF Sacai “Blue Void”

Retail price: $170 Peak
Resale price: $350+
Potential Profit: ~$180 per pair
Release date: Friday, August 27th 2021

For those familiar with past Sacai x Nike collabs, this was an easy target for a profitable release.

The resale price has since settled to around $300, which is still over $100 in profit above retail.

Here are examples of past releases that have since risen in resale value (fluctuating between $300-$700 per pair).

As you can see, money is possible in the aftermarket arbitrage as well. Keep your eye on prices and trends and you can buy appreciating assets like the Jordan 4 “Black Cat” that we mentioned in our last email– it gained nearly 300% in resale value since February of last year.

2. Jordan 4 Retro “Lightning” 2021

Retail price: $220
Peak Resale price: $350+
Potential Profit: ~$130 per pair
Release date: Sunday, August 29th 2021

The 2021 Retro 4 “Lightning” is a long awaited and welcome re-release of an old color scheme that is now considered a classic.

This year’s version didn’t have the best resale value, but keep an eye out over the year to see if this shoe increases in value like the “Black Cat” 4’s did.

A great example of how much older sneakers can appreciate is the original “Lightning” colored Retro 4 from 2006, which is now trading for $2,000-$3,000+ on the aftermarket.

While it may be surprising, there are tons of sneakers trading for $2000+ on the aftermarket.

Stay tuned for our next sneakers report, coming soon.

Check out Six Figure Sneakerhead to get the latest up to date info on upcoming releases and learn the techniques of how to get limited shoes like the ones mentioned here.

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Author

Wyatt Cavalier

Wyatt Cavalier

With a background in finance & intelligence analysis, Wyatt has an unhealthy obsession with finding the best blue chip investment opportunities. His previous newsletter, Fractional, resonated deeply with subscribers, bringing actionable insights and unconventional trading strategies. His rare book collection specializes in banned editions. He currently lives in Spain with his beautiful wife, three young boys, and dog Monty.

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