Arguello's professional career began on a sour note. He suffered a first round TKO in his debut bout, but astonishingly went on to win 36 of his next 38 match ups. These victories led him to a Featherweight Championship bout against the WBA champ, Ernesto Marcel. Arguello lost the 15-round unanimous decision in what came to be Marcel's retirement bout. He then went on to capture the Featherweight title.
After becoming Featherweight Champ, Arguello moved up in weight class to Junior Lightweight, and defeated Alfredo Escalera. Arguello moved up in weight two more times, first challenging Lightweight Champion, Jim Watt, claiming a 15-round decision, making him the 6th boxer to win world titles in three divisions, and secondly, taking on Hall-of-Famer Aaron Pryor. Pryor's victory over Arguello in the 14th round was marred by controversy and a rematch was immediately ordered . Pryor KO'd Arguello in the 10th without speculation.
After his retirement from boxing, Arguello became active in Nicaraguan politics and in November of 2008, he was elected mayor of Nicaraguan's capital city. He was fatally killed on July 1, 2009.
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