NBA Hall of Fame - Lesson 03 - Positional Opportunity Cost

Even though DraftKings has multi-position eligibility with the guard, forward and utility positions, opportunity cost comes with each and every roster decision that we make. Opportunity cost is defined as the loss of potential gain from other alternatives when one alternative is chosen. When applied to daily fantasy sports, this means with each pick that we make, we are forgoing the potential fantasy production of the alternative choices. The goal of this article is to teach you how to minimize the opportunity cost lost with each roster decision.

Examine the Entire Slate

The first step in this process is to analyze the entire slate of games as a whole. This includes the number of games, as well as an analysis of each matchup. Analyzing the slate as a whole will give you an idea of which positions you want to maximize your exposure to on that given night. Typically the shooting guard and small forward positions are the thinnest, but that can always change, as salaries and matchups both change every single night.


Opportunity Cost of Each Position

After you’ve taken a look at the entire slate, you can narrow down which positions you want to maximize your exposure to in that particular slate of games. Thanks to the multi-position eligibility DraftKings (guard, forward and utility), we are able to roster up to the following number of players at each position:

  • 3 point guards
  • 3 shooting guards
  • 3 small forwards
  • 3 power forwards
  • 2 centers

DraftKings allows us to load up on any position(s) that we choose. The concept of positional opportunity cost is important to keep in mind, as with every pick made, we are forgoing the option to target another player at a different position.

For example, let’s say that that you have four point guards and three shooting guards on your radar for a particular slate of games. If you decide to roster two shooting guards, you will only be able to roster up to two point guards (point guard and utility). Conversely, if you target three point guards, you are only going to be able to roster one shooting guard, as your guard and utility spots will already be in use. Positional opportunity cost comes into play every night, so it’s important to make your selections wisely.


Determine Your Optimal Plays

Everyone’s lineup building process is different, but it never hurts to have a plan when creating your lineup each night. My first step is to determine my absolute must plays in a single slate. Doing so will allow me to get them in my lineup before I start to fill out the other players that I like around them. One of the worst lineup building strategies is to start at the top (point guard) and then work your way down through each position. This will lead to missing out on key players at each position, as once one position is filled, you just move on. Start your lineup with your optimal plays each night and then build from there.

 


I am a promoter at DraftKings and am also an avid fan and user (my username is Notorious) and may sometimes play on my personal account in the games that I offer advice on. Although I have expressed my personal view on the games and strategies above, they do not necessarily reflect the view(s) of DraftKings and I may also deploy different players and strategies than what I recommend above. I am not an employee of DraftKings and do not have access to any non-public information.