lcw77

so then the floor is just a what... algebraic construct? doesn't mean an ACTUAL cash floor?

plus, think through what happens as my portfolio value begins to fall.

say, my new portfolio value is $1.3 MM, same $1M floor, same 1.3 cushion:
i end up w. (1.3 - 1) x 1.3 = .39 M in stock, and .91 M in cash

so i now have MORE cash in the portfolio, even tho i have a smaller total portfolio? that makes sense to you?

as my portfolio value declines in absolute dollar terms, the dollar value of my floor... increases?