Hedging Strategy

What approach do you take when implementing a hedging strategy? I currently have a $1,000 ticket on Michigan to win the CFP at +170. 

Washington looks like a threat on paper and I want to make sure I reduce some of my exposure by betting the Huskies on the moneyline. How much would you throw on that?

@MI_Fan

 Take the Huskies plus the points…gives you a shot at winning both, but still hedging. You may want to wait on taking Washington because I think the spread will get even higher for Michigan.

Good luck 

You can hit the middle and win both bets if you bet Washington +4.5 

@TheLorenaKid

@Finessed

 Both these two gents accurately right to the  point!

If it were me I would bet at even odds $1,000 on Washington.

As the fellas were alluding to is this:  3 possible results...

1/  Michigan wins by 5 or more: Win $1700 but lose $1000 = +$700

2/  Washington wins.  You win $1,000 but lose  $1,000 (Mich) = break even

3/  MIDDLE!!! Mich wins in a close one between 1 and 4 (or 5) = +$2,700

You *could* guarantee winning something (smaller) by raining the stakes on Washington higher than $1,000, but you gotta ask yourself how you feel about your original well-researched play on Michigan.  Are they the best or not?  My suggested hedge means if the worst happens (Washington wins) then you break even and live to bet another day.  But keep the Michigan payout stronger because that should be your better bet to begin with ...AND...like the boys stated, YOU GET A SHOT AT A MIDDLE!!!

The other consideration is what if you DON'T hedge?

Well if Mich wins you are elated with +$1700 windfall........but if it loses, you are out that $1,000 you bet.

My way means $700 if you win but break even if you lose!!! Much better, considering the middle opp too!!!

As I was saying, yes, by hedging $1000 on WASH, you would win $1000 less on the Michigan winner (only net $700) but on the other hand you effectively rule out the chance of LOSING $1,000.....and the hedge gives you the added shot at the MIDDLE!!!

Let it ride.