wilheldp
Monday, August 28th, 2006, 9:43 AM
QUOTE (Marchione @ Monday, August 28th, 2006, 1:26 PM)

i am going to hedge a small amount just to cover my AZZZ
Cover your azz from not losing anything?
Without hedgeing, you are 50% (if the line is good) to win $1000, or a +EV of $500.
With hedging, you are 100% to win $433 and change, for a +EV of $433 and change.
I thought we were all in the business of making correct decisions made on the basis of expected value.
Even partial hedging doesn't get you to an EV of $500. Hedging is just greedy.