arb out for the risk free 4% profit?
arb out half at Min +2.5 and half at Min +3?
let it ride?
is there a right answer?
arb out half at Min +2.5 and half at Min +3?
let it ride?
is there a right answer?
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I was always taught to only hedge if it is a life changing amount of money.
Arbing is slightly different, so I guess, I'll defer to others on that answer. Did you place the SEA -2.5 hoping for an Arb opportunity? If not, My view is that you have a better than market value wager on this game. The more you wager, the more house edge you are fighting against.Comment -
It depends as there is a difference between Expectation and Utility.Originally posted by Believe_EMT
With Expectation, the right answer depends on the math.
With Utility, the right answer depends on the person.
Rocks is correct in that you typically only hedge, if:
1) Life changing $
2) Pre-planned
Otherwise, it's usually a regret minimization technique that typically costs you equity.Comment