How To Buy A Put Option

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Comments

1. now how does executing a STC on this Put work!? This is where I'm last as a beginnner
2. As a beginner your are very easy to understand, thank you.
3. If you purchased a quantity for $2040 with a strike price @ 385, couldn't you exercise the contract once it fell below 385? For instance, let's assume this particular stock falls to 380 and I decided to then sell that quantity back to the seller, wouldn't I have made $500? (2540-2040=500)
   
   The reason I'm asking is because I see here, and heard you say, that "the stock has to fall to 364 in order to sell" the quantity back to the original seller. My understanding with puts is that you want to sell the quantity back once your contract is "in-the-money". And even though "364" is clearly in the money, why wouldn't say 382 or 372 be in the money as well?
   
   Thanks for anyone who helps!
4. +Mr2pacforya because you take the strike price MINUS the debit it cost to enter the trade.
5. why is the break even point $364.60?