Could someone give me a summary of advantages and disadvantages of each?Thanks in advance.
You can answer this and other basic questions that you'll likely have before too long by using the Options Toolbox from the CBOE:http://www.cboe.com/LearnCenter/Software.aspx
Could someone give me a summary of advantages and disadvantages of each?Quick and dirty version...Selling a put - limited profit up front, essentially unlimited downside (underlying stock can go to zero).Selling a put vertical spread (sell a put and buy another put with a lower strike price) - limited profit up front, less than a naked put due to the cost of the purchased put. Downside is limited to the difference between the strike prices of the sold and purchased put.Adenovir...Best way to learn this stuff is pick an example that interests you and write out the possible outcomes with pencil and paper. Do this many times and it will stick. Learning this stuff takes time.
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