Likes Lee- said: 2: Use an options as a form of leverage by creating a synthetic long stock position by buying the call and selling the put.
Now that you have your synthetic long, you options from 100 then hedge as per normal by buying a put at whatever strike and expiration you wanted for your hedge. This would still expose the OP to the issue of over-hedging though.
If the OP still ends up buying the put, the put would still be for shares.
OP would still be over-hedging. This is what is called a strangle or a straddle depending on whether you use the same strike price for both the call and the put or not.
This would not work well unless the stock is moving with EXTREME volatility like during earnings time or sudden news which you would not know in advance enough to take advantage of and you would suffer a great loss on both the call and the put if the price just moves a little bit like usual either way, because with each day that gets closer to the expiration date, the price of the call AND the put automatically drops in price UNLESS there is a BIG HUGE movement either way to push the call or the put price up.
This is called "killed by time decay".