can someone explain this for me ?

I shorted tesla on my paper trading account around 244.60 ish. i placed 1 put option at 245. however tesla moved against me and started to go back up to 245 and my put option actually gained in profits . I thought if you placed a put option at 244.60 and if it started to climb back up to 245 shouldn’t you be losing money ? Thank you

 

Volatility?

 

you placed a put option at 245? bought or sold the put? Also, it's a paper account

 

Not an ops guy but if you are trading the put, the put price is what matters most. Of course it "should' follow the stock price but don't expect it to - tick for tick.

Don't you think you should learn the basics before doing something?

 

i sold the put

 

Position shows "-1" so being short the put is a bullish position so you'll make money with a rise in the stock price.

 

if you sold the put and underlying goes up the put is worth less. So you made profits.

 

The way OP is worded is confusing. "I shorted tesla" "I placed 1 put option"

Made me think you bought a put.

So...your strategy involves naked TSLA options?

 

this didn’t answer his question.

In a name like Tesla, the put price will follow tick for tick with respect to the various risk factors.

 

I think the vol went up. We also don’t know the tenor or how the paper account pnl works but Tesla trades pretty tight so that shouldn’t be an issue