How is 2:1 a break even act?
It said to be, two losses and 1 win.
If we make a 1000 dollar call twice, we lose 2000 dollars. But if we win once, we win 2000 dollars. Assuming we're talking about the money not being dead money, how can 2:1 be a break even act?
If we consider the 2000 being canceled by the two 1 thousands, why aren't we considering half the money being ours initially?
So realistically speaking, we're only making a 1000 dollar profit while the other 1000 being ours opponents- this cannot be a profitable call because we're losing 2000 dollars and only profiting 1000 back on the win.
Everyone: please explain this in detail. I've tried understanding it countess times; knowing the initial 1000 is dead money, but realistically speaking, we're still losing in the long run.