I still don’t see what you are getting at but what it would seem like to me is someone using a SYNTHETIC to job the market…ie…scalp.
Used properly, this is a good way to scalp the market without fear of being caught in a runaway break and can be extremely profitable.
First you determine the direction you are going for your scalp. Let say you reckon EUR/USD is going down, you would want to short it and hopefully catch a few pips. You establish a long CALL at a strike below current market and proceed with your short position.
What you have done is to have created a SYNTHETIC PUT and you wait for the market to go down as you anticipate. If the market decides to stuff you up,seems it likes to do that all the time… you are not exposed as you are protected on the upside.
If however, it co-operates and move down past your spread and start to be profitable, even by a few pips, you can set off your spot for a profit and wait for it to go back up by a few pips and then re-establishing your initial position. The market could move up and down between these few pips and you could be going in and out every few seconds or few minutes adding up to a lot for a day’s work.
Each time you are scalping…be it in or out of the spot, you do not have an exposure and any untoward moves for or against you have no effect.
It beats having to scalp with an open risk.