Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Why do put option prices go higher when the underlying stock tanks (drops)?
There are two components of option valuation, the value that's "in the money" and the "time value." In the case of the $395 put, that option was already in the money and it will move less than the stock price by a bit as there will still be some time value there. $22.52 is intrinsic value (the right word for 'in the money') and the rest is time. The $365 strike is still out of the money, but as jldugger implied, the chance of it going through that strike is better as it's $6.66 closer.  Looking at the options chain gives you a better perspective on this. If Apple went up $20 Monday, and down $20 Tuesday, these prices would be higher as implied volatility would also go higher.  Now, I'd hardly call a drop of under 2% "tanking" but on the otherhand, I'd not call the 25% jump in the option price skyrocketing. Options do this all the time. Curious what prompted the question, are you interested in trading options? This stock in particular?