When the strike price is less than the underlying stocks trading price . In order to become an ATM or ITM option the stock must decline in price .
Xpert Comments
OTM puts are bought by traders who are extremely bearish on a stock and expect a definite downward price movement ,Basically the option would be worthless if expired today . Deep out of the money puts are bought who are willing to pay a premiumon the basis of time value ,time value decreases as the option moves closer to expiry.