Daily Bets

Is Hedging a Successful Strategy

Have you ever heard the saying, “You can’t go broke taking a profit”? That quote can be directly related to hedging in sports betting. Hedging is when you bet the opposite side of one of your bets to reduce potential loss or ensure a profit. There are a couple of different ways you can hedge. Let’s get right into an example.

Let’s say you bet $100 on a fun 4 leg money line parlay on NFL Sunday. The lines are shown below.

Cowboys -150
Patriots -200
Titans +150
Steelers -180

This parlay pays out +870. Your first 3 bets were early and have already all cashed. All you’re left with now is the game on Sunday Night, which you have Steelers -180. There’s a couple of ways you can hedge your parlay to guarantee that you at least break even. Let’s say that the Steelers are playing the Eagles and their Money Line is +150. If you feel confident in the Steelers, but also want to make sure you don’t lose your original $100 stake, you could bet $67 to guarantee that you get the $100 bet back. You would then reduce your maximum win to $803. Can’t complain about a basically free bet at -180 odds to win $803, though. If you did not feel that confident in the Steelers, then you could bet more on the Eagles to guarantee a profit no matter who wins. If you bet $300 on the Eagles Money Line you would potentially win $450. You have to subtract the original $100 bet to this to make an overall profit of $350. You are also reducing your maximum winning from $870 to $570. In conclusion, if you were to go this route, you would be guaranteed to either win $350 or $570. How you decide to hedge, if at all, depends on numerous factors. In this situation, we would recommend at least hedging to get your original bet back. As we say often, sports gambling is hard. You should never complain about a guaranteed profit.

Another bet type you can hedge is futures. Let’s get into another example.

Hedging a Futures Bet Example

At the start of the MLB season, you bet a $100 future on the St. Louis Cardinals to win the World Series at +5000. This bet would pay out $5000. MLB is a sport that allows you ample hedging opportunities as long as the team you bet makes the playoffs. Realistically, you could hedge every single playoff series to guarantee profit. You also could play it game by game and if you don’t like the way the series is going you can hedge out. Remember, though, if the team you bet gets down in the series, the opposite team’s series ML will continue to get higher. Let’s say to start off the Cardinals are playing the Cubs in the first round and the Cardinals are -130 favorites. The Cubs are +120. We decide that we want to guarantee our money back and bet $82 to win the original $100 back. This reduced are maximum win to $4900. The Cardinals sweep the Cubs making the hedge unnecessary, but at least you knew your original bet was protected. The Cardinals are now playing the Dodgers and the Dodgers are the favorites for this series at -150. The Cardinals are +135. You decide that you liked the stress free nature of  the last series, so you once again hedge to guarantee your original stake back and bet $150 to win $100. The maximum you could now win is $4750. The series goes a full 7 games, and you consider to hedge for some more guaranteed profit, but instead decide you want to let it ride. The Cardinals win game 7 and you now are in a position to really make some money. The Cardinals are facing the Yankees in the World Series. The Series Price is right at even money. You decide that an extra, guaranteed $2000 won’t hurt and bet $2500 on the Yankees to win the World Series to win you $2500. Your max profit is then $2750. Now, regardless of the outcome, you are guaranteed to win either $2500 or $2750.

Both of those scenarios were a long way of showing that there are many ways that you can hedge and guarantee profits in sports betting. In the end, if you can hedge a bet, and still end up with life changing amount of money, you should hedge that bet every single time. Remember, You can’t go broke taking a profit.

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