Nothing creative here. We also park cash at a "high interest" account; although it doesn't seem so "high" any more.
As you mentioned, protection of capital, liquidity and costs are important so we haven't really found or looked for anything better.
Parking funds?
I'm currently stashing money that's waiting for stocks to be on sale in Canadian Tire bank. It pays amongst the highest interest of the savings accounts out there and is liquid within a business day.
I wonder if there's a better option though? I like the idea of having the funds within the brokerage account. Protection of capital is important, so is liquidity and transactional costs. That would seem to rule out etfs. The few mutual funds I've looked at have minimum holding periods too.
Where do you park you funds?
I wonder if there's a better option though? I like the idea of having the funds within the brokerage account. Protection of capital is important, so is liquidity and transactional costs. That would seem to rule out etfs. The few mutual funds I've looked at have minimum holding periods too.
Where do you park you funds?
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As you mentioned, protection of capital, liquidity and costs are important so we haven't really found or looked for anything better.
What about using options? I'm just starting to read up on them but there is a method that would actually allow you to profit on a drop in CT share price and then pick up the shares at a price you deem attractive.
If you can sell a put then you collect money while waiting for the CT price to go down to your target price. If it never does, at least you've made some money. You couldn't do this with all of the money you parked unless you buyback the puts since they are a contract to purchase a 100 shares which would be far more $ required than it you'd make/spend on an option.
If you can sell a put then you collect money while waiting for the CT price to go down to your target price. If it never does, at least you've made some money. You couldn't do this with all of the money you parked unless you buyback the puts since they are a contract to purchase a 100 shares which would be far more $ required than it you'd make/spend on an option.
I use an ING account to park funds. I also put some money in the Ishares short term bond ETF with the hope of squeaking out a little more return (but with a little higher risk as well).
Technically you're tying up the money for the duration of the contract so it's not really parking funds even though you haven't bought anything. It's definitely a more lucrative strategy then parking it in high interest savings account, especially if you're interested in a certain stock and know what price you'd pay for it. Look into it (selling naked puts) if you've never heard of it.What about using options? I'm just starting to read up on them but there is a method that would actually allow you to profit on a drop in CT share price and then pick up the shares at a price you deem attractive.
If you can sell a put then you collect money while waiting for the CT price to go down to your target price. If it never does, at least you've made some money. You couldn't do this with all of the money you parked unless you buyback the puts since they are a contract to purchase a 100 shares which would be far more $ required than it you'd make/spend on an option.
I have money in the Canadian Tire bank high interest savings account - not CTC or whatever their ticker is.What about using options? I'm just starting to read up on them but there is a method that would actually allow you to profit on a drop in CT share price and then pick up the shares at a price you deem attractive.
If you can sell a put then you collect money while waiting for the CT price to go down to your target price. If it never does, at least you've made some money. You couldn't do this with all of the money you parked unless you buyback the puts since they are a contract to purchase a 100 shares which would be far more $ required than it you'd make/spend on an option.
Options make my head hurt.
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