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To conclude, the pot odds the hero is getting is an illusion becuz of the heros bad relative position, and it is this bad relative position that makes folding better than calling and raising the worst of the 3 options.

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I think that you're overvaluing your stance on this factor. Hero's relative position is actually very good on the flop.

Put yourself in the other players position (the ones to act after Villian on the flop). These players limped PF - likely with speculative hands - and Hero raised from the blinds. Now the SB leads out the flop. I think this put's Hero in a very good position.

Like SNOW said - there's a decent chance that A-high is good HU against the LAGgy SB. Raising in this spot really puts some pressure on the remaining players left to act. Not only are they facing Hero's second raise - but they also must fear a re-reraise from the SB.

I think there's a pretty good chance that they all fold here. I also think that there's a least one hand in those three that is folding a hand ahead of Hero on the flop (or at least a hand that actually had outs to continue).

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I think you and Snow are being very optimistic, but I do think you are right as far as I am overvaluing my stance on this one. I think I have written too much in this thread already, and its all over one small bet. I may be wrong in my analysis but for now I am convinced that folding is the best move here, then calling, and then raising. I am not trying to be argumentative, I think I have made it clear what my stance is. Its time to move one and agree to disagree. This was a good thread.