For example, I started with 530/505 yesterday when it cross 530. Plan to add 535/510 540/515, 545/520 if it climbs that high. The letter in bold is the stock price when these hedge will be added.
For a normal 5-7% drawback, these hedge are more than enough (premium with spread is only 1% of the stock). If market has bigger drawdown, we can always roll the spread to lower level later
Timeline I am looking for end of Jan.
Of course, we can always look at market condition and make adjustment. If there is clear sign of breakout (e.g, Russia and Ukraine suddenly agree to cease fire), then we will close these spread by taking a small loss before market runs up.
