I was wondering if anyone would recommend any book or a resource on combined 'Stock plus Option' strategies. For istance, I am interested in strategies to hedge a long (or a short) big position on a given underlying. How many option do you need to buy (or sell)? Do you just go with a one-leg option transaction or you, say, do a vertical spread? Which expiration dates you use? Can you actually use stocks to hedge a big option position? Is a combined stock-option strategy advisable for playing earnings? Lots of questions (and lots of ignorance, as you can see.... ). Thanks in advance.
You can but its not viable since it takes a lot more capital to hedge in the underlying vs options. You're better off taking the opposite call or put.
Get George Fontanils, The Options Course book. Your questions on options covers multiple strategies and requires detailed explanation of each strategy as it relates to options.