Patiently waiting to get the advantage on someone. Quietly timing a money making move using the element of surprise.
In the late 80s and early 90s NYC, muggings/ robberies/chain snatching happened all the time. "Layin' in the cut" referred to waiting in a covered location, ie btw 2 buildings or in an alley, for the right opportunity to jump someone or rob.
by LummyNYC June 05, 2013