This is an overly simplistic view of options trading. Let’s say I had a view that the stock was going to be volatile, more so than options implied, but didn’t have a directional view. I could buy the calls and short the stock and scalp my gamma during the move.
Or let’s say I was short the stock and wanted to hedge during a volatile FOMC period.
Or let’s say I was short the stock and wanted to hedge during a volatile FOMC period.