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In real life buy the 2012 2.5/7.5call spread and sell the 5/1put spread. Net cost of the trade is a credit of $0.6 to you. So, if you do 10 contracts that's a credit of $600 and you control 1000 shares.
Your worst case is you end up owning the shares below $5. At that time your net cost is 5-0.6 + Price-2.5(since you own the 2.5Call).
Your upside is 5000+600=5600 if the stock goes to 7.5+
Why do this complex trade? You can simply buy the stock at 3.5 and enjoy the ride or get off when it's profitable. But, this trade accelerates your profits as the $5Put goes down just as the 2.5Call goes up in value with the stock rising. So you make money faster ;)