We need 1/2 mil to last 12 months, but that kind of catastrophe is unlikely.
And if it does, even better, the opportunities will open up all over the place.
When others retreat, that's the time to dominate !!!
Probably would be looked at more as a percentage/ratio situation.
e.g. on a 10+ mil portfolio, you'd want at least a couple mil floating around for options, probably more if you're a low risk profile.