temocat.......the stock is selling on the exchange currently at about 45 dollars.... you BOUGHT a 36 put for which you paid a premium to Put the stock to the SELLER of the Put any price below
36 DOLLARS....which means the stock has to FALL 9 dollars below the present price of 45 dollars before your option starts to make money ...right?...now really as the price of coop starts downward (if it does during the time to expiration),... the options premiums will start to RISE dramatically as it reaches 36... so, lets say coop goes to 30 dollars.... your profit will be 36-30= 6 dollars plus whatever the premium expansion is.....lets do this: suppose the stock goes to zero....your net profit on the 36 dollar put is 36 dollars.....
now, lets say you SOLD a Put at 36 dollars, then you received a premium to take the risk down to 36, at which you have 9 dollars in downside protection...the option will start to 'GO AGAINST" you as the price of coop starts to descend, so, I can't say exactly the point, but about at 40 dollars, start looking for your option going RED....remember put and call options expand dramatically when the price fluctuates... but with a 9 dollar downside protection, the put option will not fluctuate much....especially on a weekly option....
so, your question......Aug 19 is a 3 week put option.....MM have 15 working days to move the stock to "max pain"...so the premium fluctuations will be rather slow....but generally as the time value is running out to expiration, your investment in the option will start to decay, if the stock does not move down to the 36 dollar strike.....Lodas
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