Cash Out Value

Question

I have multiple futures bets on Boston Celtics, Eastern Conference, & Atlantic Division to win the NBA Championship. We all know it is 3-0 right now.

My question is about cash-out value & if/when it is a good deal. My current cash-out is 96.7% of the future payout & hedging on Dallas to comeback is negative value since the cash-out amount is slightly higher than hedging (Approximately 2% higher in $$ amount).

My current thought process is, I am risking 96.7% to win the remaining 3.3%. Max loss is 96.7% & Max gain is 100%. Is this the correct way to think about risk / reward? Or am I missing something?

Thank you everyone.

LotusVale · Answer

I have multiple futures bets on Boston Celtics, Eastern Conference, & Atlantic Division to win the NBA Championship. We all know it is 3-0 right now.

My question is about cash-out value & if/when it is a good deal. My current cash-out is 96.7% of the future payout & hedging on Dallas to comeback is negative value since the cash-out amount is slightly higher than hedging (Approximately 2% higher in $$ amount).

My current thought process is, I am risking 96.7% to win the remaining 3.3%. Max loss is 96.7% & Max gain is 100%. Is this the correct way to think about risk / reward? Or am I missing something?

Thank you everyone.

vaas187 · Answer

Very greedy. Just take the win.

Cash Out Value

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