Overall Portfolio Allocation Question

[Nish]

Hi,

I have a question about overall portfolio allocation to options - which I want to keep under 50-60%. Since I use IB, is there a single metric that I can track on an ongoing basis to make sure I am not exceeding this number drastically. I called IB and they said "Current Excess Liquidity" is the number to look for. That doesn't sound right to me. Any suggestions? 

Thanks

Nish

[Kim]

They are correct actually.

[Nish]

Thanks @Kim  And on a related note, if doing mostly defined risk strategies, what’s an overall portfolio allocation upper limit that you usually recommend? 

[Kim]

We usually aim for 50-60%, in some rare cases we might go as high as 80%. But we trade define risk strategies only, never naked.