why is it a bad idea to take -10000 bets all the time?

pico

BARRELED IN @ SBR!

Join Date: 04-05-07

Posts: 27321
#1

why is it a bad idea to take -10000 bets all the time?

10-24-08, 09:45 AM

insurance companies do it for a living. your pay premium to place a bet at +10000 that you'll get into an freak accident.
Tags: None
HedgeHog

SBR Posting Legend

Join Date: 09-11-07

Posts: 10128
#2

10-24-08, 09:54 AM

Insurance companies know the true odds and set the premiums accordingly for a +Ev situation for them. That said, what makes you think all 100-1 favs are +EV.
Comment
20Four7

SBR Hall of Famer

Join Date: 04-08-07

Posts: 6703
#3

10-24-08, 09:55 AM

And don't forget the insurance companies also invest that money as well. I just sure hope it isn't in bad paper or stocks right now as you'll never get paid.
Comment
LT Profits

SBR Aristocracy

Join Date: 10-27-06

Posts: 90963
#4

10-24-08, 09:59 AM

Because the -10000 in sports has a vig built in, meaning you would win less than the 100 out of 101 times required to break even at no-vig odds of -10000.
Comment