$11+ Thousand PROFIT 3Days on GOOG

GOOG is down from the high of $470 or so in January to today's close at around $374. I have a Sept $380 put. The increase of PUT value can not offset the stock value that I lost. This is the put protection I have for the stock.

Is this because of the delta value of my put which is about -45 according to OptionsXpress site? It will not go point by point until the delta is -100. If this is the case, and if GOOG continues to trend down, will I be better benefited to roll the put down to 360PUT or keep 380PUT?

PS. Today, Sept 380PUT has a delta value -45, and Sept 360Put has a delta value -36.
 
Quote from fh2000:

GOOG is down from the high of $470 or so in January to today's close at around $374. I have a Sept $380 put. The increase of PUT value can not offset the stock value that I lost. This is the put protection I have for the stock.

Is this because of the delta value of my put which is about -45 according to OptionsXpress site? It will not go point by point until the delta is -100. If this is the case, and if GOOG continues to trend down, will I be better benefited to roll the put down to 360PUT or keep 380PUT?

PS. Today, Sept 380PUT has a delta value -45, and Sept 360Put has a delta value -36.
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The further ITM your Put the more downside protection it provides for your shares. So a 360 Put provides less protection than a 380 Put. Therefore, the answer to your question is keep the 380 Put. If you thought Goog will rebound you might roll down as you suggested and keep some of the 380 Put gains, however you will have less protection if Goog keeps going down.

BTW, I am a little puzzled by your question because the details you provided suggested you already knew the answer. I hope I did not mis-interpret your question.

Don
 
ya, u add another 1'n'u get almost even...keep in mind that if we go down substantially atm/itm won't increase in value as otms [vols decreases on atm strikes] so u well protected if u ratio is 2/1 on da common.
 
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