Posted Thursday, October 08, 2009 12:01 PM
Do these guys just bet against their own plays and basically hedge themselves with the money they make through selling picks?? It seems as if you get 1000 per pick (after everything is calculated, longterms portioned in, etc. etc) and this could be any number, I have no idea but to be easy on math, let's say they're profiting 1k per pick they give.
Let's say an expert gave his pick today as Philly (Hamels) -159... If he puts $500 on Colorado +151, he's hedged himself and is guaranteed to win.
If Philly wins: His pick is right and all customers have to pay totalling $1000 - $500 hedge = $500
If Colorado wins: His pick is wrong, and no customers pay. His hedge of $500 profits $755
You could of course make these numbers more equal so they both paid out roughly the same. But I'd say I'd want to win more if I got my pick wrong, since you have to make up for lost customers... but ya.. I guess they're good enough to bet on their own picks and they really have no need to hedge?