Robert Gordon, whose firm Twenty-First Securites specializes in tax-wise hedging strategies, says that a call strike price that is 15% to 20% above the put strike price should do the trick.
Traders have been trying to stand firm on longs, even in the face of some troubling headlines, but hedging was certainly a necessary ingredient to the trade.
He has filed a complaint with the National Association of Securities Dealers, alleging the firm failed to warn him of the dangers of margining his account or to discuss hedging the risk.