How and When to Hedge College Basketball Futures Odds
It’s the great debate. That is, at least in sports books around late March. “Hey, I have XYZ team at 80-1 to win a title. Now that they’re in the Sweet 16, should I start hedging?” said every amateur bettor in this position, ever (even if to himself).
So, what’s the best answer?
Like everything else in 2020-2021, there is no simple answer. However, below is a great case study to help structure our debate…
Best Time to Pick College Basketball Futures Values
Let’s simulate a bettor making futures picks at the start of the season with $100 bucks. Or, in this case, $108 to be exact. In November when these picks are made, there are naturally some good values. For example, the Houston Cougars out of the American Athletic Conference were 50-1. Although they play in a non-power 5 school, Houston would ascend into the AP Top 10 throughout that season. The team’s value increased to 12-1 by February.
So when do you hedge?
Should you sell a ticket that doubled in value on a secondary market, such as PropSwap?
If you had two future tickets like it, and sold one on ProSwap, that would be considered hedging your bet.
When to Hedge College Basketball Futures
Let’s fast forward. Now that games have been played and you can use your eye test to analyze teams, who do you like? In our case study, the longest shot odd of North Texas (above) is having a difficult year. Meanwhile, in its conference, UAB and Western Kentucky are piecing together a quality resume. In fact, it’s within the realm of possibilities that one of those teams get an at-large bid. And so, instead of throwing out the North Texas bet that could win $10,000, we hedge it by also investing in the other in-conference rivals. This way, it becomes a statistically likelihood the bettor will have a Conference USA team in March Madness.
See Western Kentucky and UAB below.
You can see that for just $3 dollars and $4 dollars respectively, the odds are probably around 95% at this point that the better will have the Conference USA team among its roster of teams in the actual March Madness bracket. Did we mention this was betting on a budget?
And so at this point the bettor would have 13 teams in play. We are conceding that 2-4 of those teams won’t make the NCAA Men’s Basketball Tournament (let’s say two Conference USA teams in addition to one other). So let’s say that 10 teams will be in the tournament and for $200 the bettor can himself to win at least $1,000 in those ten scenarios. And so the next question may be: When would he start hedging if he acknowledges Gonzaga and Baylor look far-and-away like the nation’s best teams (at +350 and 6-1 for their respective futures).
That’s where this article will is to be continued…