This method is normally used when Options are overpriced. The trader would simply buy stocks in the open market and sell the equivalent position in the options market.
This is done because the trader sees that the Options price is too high and anticipates that it will eventually decrease. So he/she decides to cash in on the options and use the proceeds to buy the stock which he /she will be able to hold for a longer time without having to worry about things like time decay.
