Quote from trendlover:
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Cutten, is your thinking this is safer to pay the premium of the put (limit on loss) compare to the short position?
You can put it in cash.Quote from Chausey:
This is mostly wrong because where the hell are they going to put their money? In risky assets? BAC or Wells Fargo? Gold can pull back, but get liquidated? Why? Just because it will? Just because the CHF goes up and down 8% doesn't mean it bores a hole through the earth when it comes back down. Volatility is here, but that is separate issue from whether the price goes higher.
Quote from Butterball:
Very true. I find the entire idea of 'parking cash' very awkward. I'd never park cash in any trading instrument assuming it's 'safe'. For instance I own a truck load of bonds of all maturities and it's been a great ride for the last couple weeks. I don't consider myself parking my money in bonds. I am merely speculating on further price appreciation.
Reminds me of... doesn't it all boil down to just one question:
'At the end of the day, your job is to buy what goes up and to sell what goes down.' -- Paul Tudor Jones