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Old 11-29-2005, 03:03 PM
stinkypete stinkypete is offline
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Join Date: Jul 2004
Location: Toronto
Posts: 412
Default Re: Ever wonder why 2+2 is going downhill?

[ QUOTE ]

Maybe you are right. I guess I should have said "I don't see a significant difference in monetary return between folding and capping. If I fold, I lose zero. If I cap, I expect a very small return in the longrun, so I don't see much difference between the two.

I actually thought my response was self-evident. Perhaps it was not.

[/ QUOTE ]

this explanation is just a wordier version of your original post. it doesn't add anything.

how about explaining how you arrive at roughly 0 EV for a cap, and then explaining why a cap is better than a call?
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