Wednesday, September 5, 2007

NFL - Week 1

I could not be happier that the NFL season is finally upon us.  Spending the entire Sunday at the sports bar, playing fantasy football and wagering on the most popular professional sport in America.

Before I get my picks down, there are a couple of guidelines I follow when looking for early season bets:

a. Try to avoid laying points on road favorites against mediocre teams.

b. Unders hit far more often early in the season than they do later in the season

Now, on to the picks:

1. New Orleans Saints @ Indianapolis Colts - Total Under 50 (-110) - 1.1 Units

Here's my seemingly crazy play of the week that goes against what the entire betting public thinks will happen. 

The first reason for this play is that it usually takes offenses a couple of weeks to get up to the speed and timing with which the defenses open the season.  It makes sense because while executing offensive plays takes precision and timing, it does not require the level of coordination to play defense. 

The second reason goes to what I anticipate to be the game plan from New Orleans' perspective.  While the Saints certainly have the offensive ability to get into a shootout with the Colts, I'm sure they'd rather not have the game come to that (duh!).  It doesn't take a rocket scientist to figure out that the way to avoid a high scoring game is to keep Peyton Manning off the field and the way to accomplish that is to keep your offense on the field by giving the ball to Deuce McAllister early and often. 

Defensively, the Colts are very fast and run the traditional Tampa Bay Cover 2 defense.  This defense almost never blitzes and relies on the quick, undersized defensive linemen (Dwight Freeney) to disrupt the other team's offensive flow.  During the season when Tampa Bay won the Super Bowl, they only lost four games all season, but they lost both times they played the Saints.  In both of those games, Jim Haslett (of all people) seemed to have figured out how to defeat a great cover 2 defense......run the ball straight at them with a big running back.  Of course, that running back in both of those games was Deuce McAllister.  Fortunately, the Colts are not a great Cover-2 defense, but rather are merely average.  One possibly important factor in this gameplan is that DT Booger McFarland is out for the season, removing one of Indianapolis' best run defenders and a big presence in the middle of the line.

Finally tying this together is Sean Payton's experience in the NFC Championship game last season.  The Saints went to Chicago and played a great Cover-2 defense.  Several times during the offseason, Coach Payton referred to his flawed game plan which only had McAllister run the ball 9 times in poor field conditions and how he wished he had run the ball more. 

Hopefully, Coach Payton has this in mind.  My only regret here is that I didn't wait longer to place this bet as the line has climbed to O/U 53.  Also, parlaying the Saints +6 and Under 53 is probably a very good bet as it has to be improbable that this game goes under without the Saints covering.  The parlay also has the added benefit of increasing your reward by paying 2.6:1, thereby only requiring that you hit it 28% of the time.

2. Kansas City Chiefs @ Houston Texans (-3 @ -115) - 1.15 Units

I'm not exactly sure how much stock to put into preseason performances, but if the last four weeks are any indication, the Texans should easily cover this 3 points.  Kansas City never scored more than 12 points in any game while the Texans never scored less than 19. 

I expect the Texans' run defense to be much improved this year with the addition of first round pick Amobi Okoye at nose tackle.  Okoye should take up the space in the middle and keep blockers off of DeMeco Ryans and allow Mario Williams to see more one-on-one blockers on the left side of the line.  Adding in their first round pick from 2002, CB Dunta Robinson, the Texans have the foundation for a solid offense.

On the other side of the ball, everyone knows that Matt Schaub was brought in to be the new Quarterback.  Of course, they will likely have some similar problems as before as they really didn't do much to address their turnstile-like offensive line.  At any rate, Schaub and Ahman Green should present some improvement over their 19.1 ppg average from a year ago.

In the meantime, the Chiefs look like they're ready to make it a go with Damon Huard and Larry Johnson.  It should be noted that Johnson did not play during any of the preseason games.  However, after watching the Chiefs starters on both offense and defense against the Saints in the third preseason game, I don't think adding Johnson and Huard (who also did not play in that game) will help all that much.  Their defense gave up yards in bunches and their offensive line was not effective in blocking the Saints pass rush.

Whenever I see all of these factors, it is natural to bet the home team when only being asked to lay 3 points.

3. Detroit Lions @ Oakland Raiders - Total Under 39.5 - 1.1 Units

Here's a play right out of the early season playbook.  I have to believe that the reason this number is available is the considerable publicity the Lions have gotten during the offseason after adding Tatum Bell and Calvin Johnson to an already improving offense.  However, what most people seem to have forgotten is that, in addition to their awful offense, the Raiders actually have one of the best defenses in the league.  In fact, the Raiders only played over 39.5 points in 2 of 16 games last season. 

Between the combination of new players at key positions on both teams' offenses and the Raiders actually playing stiff defense, I really like this play.

4. Pittsburgh Steelers (-4.5 @ -110) @ Cleveland Browns - 1.1 Units

And after listing my two guidelines, I go and break one.  The exception here is that the Browns will consider this season a success if they rise to the level of mediocrity.  They are terrible and Charlie Frye (not Brady Quinn) will be starting this week.  Add in the motivation of new Steelers' coach Mike Tomlin to win his first game and to beat a divisonal rival convincingly and I think this is a very solid bet.

Tuesday, September 4, 2007

Season to Date Record (2007.09.04)

2007 NFL Preseason
Sides: 4-6 (5.975 ==> 6.000 ==> +0.025 Units)
Totals: 1-0 (0.55 ==> 1.05 ==> +0.50 Units)
Parlays: 1-0 (0.50 ==> 1.785 ==> +1.285 Units)
Teasers: 0-0


2007 NFL Regular Season
Sides: 0-0
Totals: 0-0
Parlays: 0-0
Teasers: 0-0


2007 College Football
Sides: 3-4 (7.800 ==> 6.300 ==> -1.500 Units)
Totals: 0-0
Parlays: 0-0
Teasers: 0-0


Totals
14.825 Units Wagered
15.135 Units Paid Out
-------------------------------

0.31 Units Won (2.1% ROI) ..... I should be investing in T-Bills right about now

You don't have to win every one (a.k.a. Chasing Losses)

So I ended the first weekend of college football 3-4 and down 1.5 Units.  Going into Labor Day, I was 2-2 on my posted plays and down the cost of the vig (0.2 Units).  I could have left well-enough alone, since I did not have strong opinions on either game yesterday.  But, then I of course decided that if I was going to watch 6-7 hours of football that I needed a little action on the games. 

This, in and of itself, is not too terrible since I'm not giving up much expectation by randomly choosing a side.  Theoretically, blindly betting either side of the point spread should be even money since the spread is intended to divide the public's opinion 50/50 as to the outcome of the game.  Of course, this assumes that the market is efficient and all available information is accounted for in the current spread.  So, I decided to lay the points in Texas Tech and came up with a win to put me in front 0.8 Units for the weekend.

After that game was over, I checked the line on the FSU/Clemson game and it had come down to FSU -3 (-115) after being at FSU -3.5 for most of the week.  Since I had just won and could only end up being 0.1 Units worse off than when I started the day, I played FSU -3 and laid 1.15 Units to win 1.  Again, this is not so terrible.

Then, Clemson is up 24-3 at halftime, with the only Florida State points coming on a field goal after blocked punt.  FSU had one first down (on the first play of the game) in the first half and had absolutely no answer for Clemson's running game.  It was at this point that I had the bright idea to take the Clemson moneyline for the second half at +100 and lay 1.15 Units on that bet so that I could come out even for the game. 

This is truly atrocious as I have taken even money and created a huge middle where I can lose both bets and a relatively small likelihood that I win one and lose one.  In other words, with the 24-3 halftime score, I essentially have my first bet (FSU -3) converted into FSU -26 for the second half.  I then worsen my situation by creating the circumstance where Florida State outscores Clemson by anything from 1 point to 25 points in the second half and I lose both bets.  That's the sign of a disciplined bettor right there. </sarcasm>

It is simply inexcusable to study the lines all week and carefully consider what wagers to make and then wipe everything out with impulse wagers at halftime of the last game of the week.  It is a tough lesson, but one that I'm better off learning now, that's for sure.

Just to show what this does to the bottom line.  If I had not wagered at all yesterday, my net for the weekend would have been -0.3 Units and my ROI overall would have been 17%.  Had I stopped after the Texas Tech game, my net would have been 0.8 Units and my ROI would have been 21%. 

See the next post to see me starting over at square one.

Monday, September 3, 2007

OK, Just one more

Florida State (-3 @ -115 ) @ Clemson

I just think Florida State has the better team and the better coaching staff.  Only 12 starters return for the Clemson team that beat FSU 27-20 last season.

The line finally came off FSU -3.5, so I decided to play it.

Labor Day Plays

America's day to stay home and gamble on football!

Since I'm behind for the weekend (thanks Mack Brown!), I've decided to pour some money into the Texas Tech-SMU matchup. Trying to "get even" on Monday is typically not where you want to be, but I really like a number of plays in this game:

Texas Tech -8 vs SMU 2 units

I also have Tech at -9.5 for 1 unit so I was thrilled to see that the line had dropped for me. Here's a factoid for you: Tech is 11-o vs SMU since '89 winning every game by double digits (avg margin of victory is 27 ppg).

Texas Tech Team Total over 34.5 1 unit

Tech put up 35 against SMU with an inexperienced QB last year. With Graham Harrell back and an experienced group of WRs, I don't see them missing a beat this year against a very poor SMU defense.

Other plays today:

FSU -3 vs Clemson 1 unit

How big of a hire was Jimbo Fisher? We'll see tonight as Drew Weatherford leads the Seminoles into Clemson. I like the offseason coaching changes for the 'Noles and look for improved play at QB which will be the difference.

Parlay of the day (aka Lyle's lottery selection):

Texas Tech -6.5, Texas Tech/SMU over 60, FSU -0.5 $5 to win $21.59

College Football 2007
Sides 4-3-1 (-0.5 Units)
Totals 0-0-0
Parlays 0-0-0

Sunday, September 2, 2007

Added Play

Batting .500 for the weekend thus far.  Navy let the game get away from them with turnovers and penalties.  If they don't shoot themselves in the foot 3-4 times, that was an easy cover.  On the other hand, i have NO idea what happened with Texas.  The #4 team in the country beats a mediocre sun belt team by 8 points?  If Michigan hadn't honked it yesterday Texas might have fallen a few spots in the polls for that performance.

Anyhow, I do have one more play for Monday:

Texas Tech (-8.5 @ -110) @ SMU - 1 Unit

The recent games in this series have all been Texas Tech double digit wins.  Let's hope Dan Leach has one more in him.

Friday, August 31, 2007

An Interesting Exercise in "Middling a Game"

In Las Vegas sports books, when the lines for upcoming games are released, a select few gamblers are allowed to place their bets before anyone else as the sports book tries to determine whether their line is good.  Depending on which side these "sharp players" bet, how much they bet and whether they bet the line at all will determine if the line will move up, move down or stay where it is.  Once the sports book is confident it has a good line, it is then released to the general public.

Once the line is released and the general public starts to bet against that line, the sports book will move the line (the point spread) and the price as needed in an effort to attract balanced action on the game.  When it comes to football point spreads, you'll often see a line stay at -2.5, +3.5 or -6.5 for a long time and some odd prices like -125 or +110 associated with those lines.  What the sports book is trying to avoid is moving the line onto or off of a "key number".  Because of the way football is scored, there are certain margins of victory that occur more often than others.  The margins are 3, 4, 6, 7, and 10.  To a lesser extent in the parity-driven NFL, but more common in college football, 14, 17, 20 and 21 come into play as key numbers.

When a sports book has been taking heavy action on the favorite at -2.5 and moves the line to -3, then they risk getting "middled" on the game.  What would be the bookmaker's worst nightmare is for the favorite to win by exactly 3 points, forcing him to pay the bets laid at -2.5 but pushing with everyone who played the game at -3.  Even worse would be if the book decided later during the week to go from -3 to -3.5 with the favorite subsequently winning by 3 points.  The book would then lose on the -2.5 bets, push on -3 and lose on those customers who were finally enticed to bet the underdog at +3.5.

A lot of times, especially in college football, it does not matter what the sports book does with the line and the price; they just cannot stop the money from coming in on the favorite.  Just such an example happened during the afternoon in advance of the first major college football game between LSU and Mississippi State.  The line opened at LSU -16 (-110) in early August and I immediately placed a bet at that number, believing the true number to be somewhere around LSU -24 to LSU -27.  The spread then hung around -16 and -16.5 for a couple of weeks before finally making its way across the key number of -17 and more or less settling on LSU -18 (-110)

Then, on the day of the game, as the betting public started to get their action down, the line started to move.  Evidently nobody wanted anything to do with Mississippi State as the line was -18.5 at 2:00 pm and had moved to -19.5 by 3:30 pm.  It got as high as LSU -21 (-105) at Bodog.com, which then presented an interesting opportunity for the people like me, who had an open bet on LSU -16 (-110).

Just like the sports books try to avoid getting middled by having a stable line, going for the middle as a bettor is an excellent opportunity that not only offers attractive odds on your bet, but also dramatically lowers the variance in your bankroll.

From the bettor's point of view, trying to "Middle" a game is a form of hedging your bet.  In this case, I had an open bet on LSU -16 (-110) for 1.1 Units and was presented with the opportunity to place a second bet on Mississippi State +21 (-115), which I would make for 1.15 Units.  If I opted to take this opportunity, then I would essentially be converting my bet from "LSU to win by more than 16 points" to "LSU to win by 16, 17, 18, 19, 20 or 21 points".  The downside is that if LSU ends up blowing out MSU, then I win my original bet (+1 Unit) but lose the new bet (-1.15 Units), for a net loss of .15 Units.  The upside is the potential payoff (+2 Units) should LSU win by any of those scores.  Since I've defined my risk (.15 Units) and reward (2 Units) on the bets, I'm receiving 13.33:1 odds (2 Units / .15 Units) to try for the middle.  Getting these odds means I only need to win both bets 7% of the time to break even.  Anything above 7% means profit.

Obviously, the next problem is to quantify how often a favorite in this situation wins by exactly 16, 17, 18, 19, 20 and 21 points.  To answer this, I researched my database to come up with all games where a road team was favored by between 13 and 22 points.  Below is a table containing the results from the last 20 years of college football.  There were 1,153 games fitting this criteria, including the percentage of those games where the favorite won by the point margins listed above:

# of Games Margin of Victory Probability
20 16 0.0173
49 17 0.0425
24 18 0.0208
18 19 0.0156
24 20 0.0208
44 21 0.0382

The last quantification needed before we make the comparison between our two options is how often we expect LSU to cover 16 points.  When anticipating the early lines for Week 1 of college football, I felt the line for this game should be in the neighborhood of LSU -24 to LSU -27 and was fully prepared to immediately bet anything less than LSU -21.  In order to determine the edge on LSU -16, I researched the margins of victory where the road team was between a 24 and 27 point favorite and calculated the cumulative probability of these road favorites winning the game by 16 or more points.  For 165 games where the road team was favored by 24 to 27 points, the results are below:

# of Games Margin of Victory Cumulative Probability
1 16 .6848
3 17 .6788
3 18 .6606
1 19 .6424
3 20 .6364
8 21 .6182
2 22 .5697
0 23 .5576
5 24 .5576

From this data, we can conclude that a road team favored by 24 to 27 points will cover 16 points 68.5% of the time.  Since we need to win 52.5% of our bets when laying -110, we should be able to count on a 16% edge on this particular bet.

Finally, from our research, we should be able to make an informed decision in response to our opportunity to make the second bet on Mississippi State +21 (-115).

From the first table, we sum the probabilities of the favorite winning by exactly 17, 18, 19 or 20 and come up with 0.0997 or roughly 10%.  Since we have to win both bets 7% of the time and the probability of that happening is 10%, this is a bet with positive expectation.  However, our edge is only 3% on both bets while our edge is 16% should we stay with our current position.

In the end, there is no reason outside of bankroll management considerations where we should give up 13% of our edge to make the second bet.  When playing on a short bankroll, however, you may want to consider making the second bet to considerably reduce your risk.

This analysis highlights several important aspects involving betting on football:

1. Be prepared to bet when lines are released.

This opportunity, even though I passed, would not have presented itself had I not handicapped this game prior to the line being released

2. Continuously monitor line movement

Again, I would not have had this opportunity had I placed my bet and then ignored what was going on in the betting market.

3. Have a general idea of your edge

The final decision to pass on Mississippi State +21 (-115) would not have been as easy without the ability to approximate the edge on my open bet and the potential second bet.  I was ultimately surprised that getting the "key numbers" of 17 and 20 and pushing on the last key number of 21 did not offer nearly the edge I expected.  Without being able to do this kind of analysis, I may have made a misstep and cost myself a lot of expected value.