Comparing Sports Betting to the Stock Market

Sports betting is just another form of investing – and a much more profitable one if done correctly.

Let’s keep it serious – 99% of bettors LOSE money long-term.

At OddsJam, we spend a lot of time talking about “Positive EV” bets – but what does Positive EV even mean?

Positive EV Game #1: Stock Market

As of Thursday night, Google stock was priced $136.17.

Imagine I said: “Hey, want to buy my Google stock for $100?”

Saying “Yes!” would be a Positive EV trade for you. I’m offering to sell you the stock cheaper than the current market price.

Every day, millions of people wake up & their full-time job (investors, traders, etc) is to determine which companies are overvalued vs undervalued. If everyone believes Google is overvalued, they will sell the stock & the price will go down.

The current stock price of $136.17 reflects where supply & demand meet – $136.17 is currently the “fair” price of Google given all available information. Buying Google at $100 would be a Positive EV game for you!

Positive EV Game #2: Coin Flip

Here’s another example of a Positive EV game. Let’s say we flip a coin…

1. If the coin shows up Heads, then I give you $150
2. If the coin shows up Tails, then you give me $100

The coin is 50/50 to show up heads vs tails, so this would be a “no brainer” game for you. Half the time, you’ll make $150 in profit. The other half, you’ll lose $100.

Expected value = 50% x $150 – 50% x $100 = $25.

Sure, the coin will show up on Tails sometimes & you’ll lose $100, but long-term you’ll make a lot of money playing this coin flip game. This is a Positive EV game for you!

Try OddsJam Positive EV Free!

Sportsbooks make mistakes too, and that means opportunity (e.g. a Positive EV game, or bet) for us. Email me anytime with questions – [email protected] – my job is to help you make as much money as possible this football season.