Option involves risk, not suitable for all investors. Just forget it unless you do know the correct answer of your question. It is really a good criteria to evaluate whether you could do option trading. :P

We could write tons of books to explain the detail.
naked call/put, vertical bull/bear spread, straddle, straggle, leap, write option, etc... too many issues. My serious suggestion: Forget it or study hard.
I knew some option experts who got several millons dollars from market. But I never see a option pro who cannot make money from underlying stock. You know what? Free lunch requires a big enough stomach.