Had some spare cash, decided to buy a weekly put for a 7/16 expiry with a $15 strike, $0.55 premium that had an IV of ~500% and I purchased 5 contracts, for a total of $275. The underlying has fallen nearly 20% today and is trading at $41, but my options IV has dropped to ~400%, and thus my premium is now at $0.18 and I'm at a loss (unrealized) of $185.
Aside from the time decay of the option, being a weekly, the only reason I can think that the premium would've dropped would be from the contracted IV. But why is IV dropping? I don't usually buy put options, but I thought the inverse of call options held: option premium rises if underlying falls. Is it because there is less demand for this option as the options market does not feel that the strike will be met by the given expiry?