Put: An option contract that gives the holder the right to sell the underlying security at a specified price for a certain, fixed period of time. Ratio Spread: A multi-leg option trade of either all calls or all puts whereby the number of long options to short options is something other than 1:1.
Stocktrading is easy to understand; you either buy stock or sell stock short. No decision needs to be made about choosing strike prices, expiration dates or assessing underlying volatility. You buy shares and make money if the stock goes up. You sell shares short and make money if the stock goes