Let's hypothetically say that a stock is trading at $153, and I can buy its $150 call option for $3.
If I shorted 100 shares of the stock and bought 100 options, then I would be guaranteed to break even (let's just assume $0 commissions). If the stock went up $5, I'd gain $500 on the options and lose $500 on the short sell. If if went down $3, the options would expire worthless (loss of $300) but I'd gain $300 on the short sell. And so on.
However, it seems like the option would be mispriced, because there of course is some chance that the stock will rise in value (while its $3 price implies there is no time value component to it).
If this were the case, is there a strategy that would cap my loss at $0 (as above) but give me some upside if the stock were to increase in price?