I would sell ES in approximate amounts to what you have invested, with the second option of going 50/50 as you said. I would maybe sub EDV for TLT, but that's a minor point. At these levels, I like that allocation a lot better than 100% SPY. That's more or less where my allocation currently. Rebalance on swings
or better yet, never get yourself in a position where you need to hedge. Heging is for real people that must buy real things, like corn or oil. Nobody is forcing you to own SPY.
I think alot of times you put a hedge on adding addition views on other things.... Truely you are never completely hedged... Zerohedge is a good name for that reason.. Sell a call against your stock... Your in a debit spread.. You are taking views not only on the underlying but on vol....
when I finally get my hedge on so I can sleep at night, no matter what the market does, there could even be nuclear war, and noboody will make any money, except the broker, but I'm sleeping like a baby, same total return (minus commish) but more comfortable than trying to sleep on it under my mattress