Someone turned 80k into like 1.2 million betting on Tesla calls or something and hedged with a Kamala win bet it was like 50k tesla/30k Kamala and they turned it into 1.2 million via Tesla somehow
Is it like
- bet 1/2 on unlikely thing
- bet 1/2 on likely thing
- rely on gains on either side averaging out to at least ++
It’s not so much about estimating odds as it is limiting the potential downside. Hedging is the rational part of things lol
Can you give me a really classic and rational/prototypical example or hedging? Like is it be stretegically cynical/ Thinking in Bets?