The deferred month option is not a hedge in the traditional sense, but neither should it be viewed as higher-risk than equity ownership; both long calls and equity positions suffer with a deterioration in market prices but the call limits your losses with a serious downdraft. Timing is...
The 90:10 ratio is simply an example. You have to do some additional arithmetic given the prices available to see whether the strategy is appropriate at any specific time. It's not voodoo, but neither is it a panacea.