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Strategies & Market Trends : Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: Thehammer who wrote (2250)	2/25/2021 2:15:10 PM
From: Hank Scorpio	Read Replies (1) \| Respond to of 2591

I have been thinking about your idea of short term bonds as a cash substitute. I don't like the fact that IB will treat is as a security rather than cash, and every subsequent trade is secured by margin. But perhaps a portion of the portfolio could be bond and the rest cash. I never use 100% cash anyway. Quite the contrary, if I have no assignment on this 'wheel' strategy I'm probably 10-20% "invested". I just don't need to be any higher in my trading account. Maybe 50% bonds? I understand completely the risk wrt. to a market sell off. I've been through all the crashes since 1987. Some, like in 1994, I was margined and some, like in 2008, I was giddy on the sidelines. This is a very different ballgame as compared to speculative trading. And, as I am becoming aware, you either participate and take the risk (however it is structured) or find another way. You can't sit around waiting on a signal.