Losing money on puts when stock goes down

[BlackyMata]

I have a 17.5 dollar put on carnival cruise lines On friday. Today carnival is down 10 percent and I am down 16 percent. Someone explain how a put loses money when the stock price decreases.

I hear you. I sold 4 puts yesterday in high volatility, share price is dropping to where I want to buy the shares but I'm losing money in the process. Not much but I'm paying to wait in this case. I went back to check and vol is still in the high range. Strange times. Spreads are nuts too. I just want the ETFs.

 

[Bekim]

Next time buy a spread

 

[Yogikaka]

I have a 17.5 dollar put on carnival cruise lines On friday. Today carnival is down 10 percent and I am down 16 percent. Someone explain how a put loses money when the stock price decreases.

Hello, how close is the option to expiry? Since you are long, you would benefit from vol due to skew.
Even the rate cut should favour your position.
It also depends on the moneyness of the option. If it is ATM then theta is the culprit if close to expiry

 

[torremo]

I have a 17.5 dollar put on carnival cruise lines On friday. Today carnival is down 10 percent and I am down 16 percent. Someone explain how a put loses money when the stock price decreases.

It may have something to do with your put strike price and time to expire. If your put is out of the money, and expires on the same Friday, it doesn't matter how much percentage the stock is down, as long as it's out of the money, your put will keep going down as the day goes on.