Purpose : To replace the ownership of the underlying stock with owning its ITM LEAPS call options instead. This way, the excess money can be used for hedging purpose.

Profit When : Up

Risk : Limited

Reward : Unlimited

Breakeven Pt : N/A

Max Profit : Unlimited

OppiE's Note : There are two main ways to hedge using the stock replacement strategy. If the stock is expected to make a slight correction, you could short OTM calls against your existing call options. If the stock is expected to make a significant drop, you could short the underlying stock instead.