Re: Tuan Le and The Grinder
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Horse and backer need to contract to extend their relationship over a large number of tournaments, after which horse will get some percentage of the total net, not the total gross. The longer the relationship, the higher that percentage can be for the horse and still remain profitable for the backer.
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Hi Ed:
I'm not so sure. My observation is something like this: Horse is now pretty much in the hole which means that he has to win a fair amount before he can begin to receive any money. Thus it's in his best interest to play like a crazy man since he'll feel that unless he wins the tourney (or places very high) it's not worth his time. Thus he becomes a bad player and his staker gets even more in the hole until the horse is told to find someone else to back him, which is of course exactly what the horse wants at this point.
Best wishes,
Mason
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Stated differently, if you're long a call option you should maximize your variance.
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