If I think AAPL will only go to $510 and its at $500 I will buy a $505 or $507.50C and SELL the $510C against it to create the spread. If I think it's going to $520 and it's now $500 I will buy the $510 and when the stock moves up a bit I will then sell the $520C against it. For example... I think AAPL will go down to around $500. So I will look to get a $510/$500PS. If I buy it right now it will cost me $1.32. So I bought the Long Put at around $1.70 and if the stock goes down fairly quickly the $500 Put will move up in value from around .60 to say $1.25 (for example). If I sell the Put now I just created my PS at .45. I now have a Spread with a max gain of $10 with a cost of .45 vs a cost of $1.32 if I bought the spread together.
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