Movie X has a $25M strike price on it call/put
Actual Opening weekend BO for movie X is $40M
If the fund max'd out on the call and put long (at IPO price of H$2), then it would lose the H$20k for the put, but it would gain $130k on the long.
If it actually opened at $10M, it result in the same gain, just flip where it comes from.
Basically its insurance against a big variance between Strike and Actual