OB 828: Clam Pirates, Hobbits and Funky VIX Curves

QUESTION FROM Steven Tresser: Mark, I love the podcasts and have learned a ton from you guys. I have two questions about protecting profits with puts:

1. I've heard you mention around 2% as the appropriate amount of premium to pay to protect profits in a stock. Is this 2% of the overall position, or 2% of the profits?

2. How would this apply to profits in a long call. Say I am up $10,000 in a long call position and think it still has some upward run. How do I figure out how many ATM or slightly OTM puts I need to protect some percentage (say 50-100%) of that profit? Thank you and keep up the good work! Great show!