Yes, just in my trading account. In a long term account you don't really need to have CASH necessarily. Assets are allocated differently. But I don't have all of my long term investments locked up in an IRA or 401K either. 15% in my trading account has to do with the fact that for positions such as verticals, if I need to buy back the short leg I will need some cash to do it. I don't know that I would call it "buy & hold". I'm not the type of person that would hold a company when the trend reverses. You could call it "core" or "positional" trading. In some ways the two intermingle. That is, if I am long the S&P 500, it is nice to use options to enhance the returns or minimize the losses. That is why I said before that I think everyone should be able to use derivatives in their portfolio. As far as books are concerned, I don't know that I would recommend a specific book. You seem intelligent. Read as many books as you have time for. When you read them, get rid of the opinion and concentrate on the mechanics. Develope your own opinion. For instance, "Options Course" by optionetics founder George Fantanills. The strategies that he prefers, I really HATE, but he does a decent job at describing the mechanics of setting up trades for the beginner. Problem is, all the beginners take his opinion on strategies as gospel, like he is some kind of guru. Also, anyone just getting into short term trading of any sort, should read a book like "Short Term Trading in the New Market", by Toni Turner. She also has her preferences, but does a pretty good job describing candle patterns and market mechanics with a bit of humor mixed in. After reading a bunch of books I had to go through the information and discover the real truths beyond the theory. In other words, how do I trade in the real (less predictable) world? And what is risk really? As you are realizing, risk profiles are usually much different than books and software would have you believe.