To spread an option, or to create an option spread, is to put on
a corresponding short position onto your existing long position (or
vice versa), in order to create options spreads with specific
payoff profiles.
For instance, if you bought a call option, it would have limited
downside risk with unlimited profit potential. But if you sold an
out of the money call option on top of that call option, you would
create a call spread which lowers capital outlay but also limited
upside profit potential.