Yes, it’s true. One curious facet of pot-limit Omaha is the fact that it is occasionally strategically sound to fold the best hand. Seems to go against intuition, I know, but there are times in PLO when it is not such a good idea to proceed with your hand after the flop even if at the time you hold what is undoubtedly the best possible hand.
There are a couple of situations where having the nuts on the flop is not to be envied. One is perhaps more easily recognizable than the other, that is, the situation where you flop the nut straight with no redraws, and are facing heavy betting from one or two opponents, at least one of whom very likely has flopped the same straight with redraws to a better hand.
For example, you are holding Jc-8c-7d-6d and the flop comes 10h-9h-2s. Congratulations, you’ve flopped the nuts. The problem is, there aren’t any possible turn and river cards that can improve your hand by the river. You’re best for now, but there are lots of dangerous cards that could come that would make things uncomfortable for you. Any heart completes a possible flush. If the board pairs, you have a full house to worry about. And if any eight, jack, queen, or king comes, now you no longer have the best possible straight, either!
So you lead out with a pot-sized bet, then your lone opponent reraises pot behind you. Now what? If you had two hearts in your hand, you might continue with this hand, but without any redraws, you’re very likely just playing for half of the pot. In other words, every chip you put in from this point forward you are hoping to get back, plus half of whatever was in there before the flop. In fact, you shouldn’t have led out, but checked in order to try to keep the pot small, as this is definitely not a spot in which you want to be committing a lot of chips.
The second example of a time when folding the nuts maybe is less apparent is when you have flopped top set with no redraws and no real chance to improve to anything but a full house or quads, yet you are facing a lot of heat from a single opponent who has a huge “wrap” straight draw and a flush draw. In this case, you could well be a big underdog in the hand, despite the fact that you have a huge advantage on the flop.
Here’s an illustration of that unique situation: you hold Qc-Jc-7h-7d and the flop comes 7s-6s-2h, giving you top set. Your opponent, however, is in late position and is betting heavily with his 9c-8s-5s-4h. He’s flopped a huge “wrap” straight draw as well as a spade flush draw, and is in fact a 61% favorite to win this hand by the river. You can gamble here if you like, but do so knowing that it is quite possible you aren’t getting your money in good.
The fact is, if you play with some discretion, you’ll discover there are going to be many better spots in which to get your chips in the middle than these two in which you’ve flopped the current nuts.