1) You BUY the option for $1.00. If and when the stock reaches or crosses below 95 your option will increase in value. If you owned the stock you could "put" it to the seller for $95 per share (this assumes you paid less than 95 for the stock). Since you own no stock you can sell the option at the market anytime until expiration and will make money if the option is worth more than $1.00. If it goes to 80 the option will be worth about $15.00 roughly.

2) You SELL the option for $1.00. If the stock goes below 95, possibly to 80 per share, the buyer can "put" the option to you, thereby requiring you to buy the stock for 95. You could get out of this, still with a loss, if you buy the option back for the much higher price before it gets put to you.

3) SUMMARY: Depending on whether you buy the option or sell it, you can be on opposites profit sides of a trade.

Lets look at your expectation here - you think this stock is going to move 20% in a month while the option is priced as if the stock is going to move about 25% annually. That means that you want to be buying puts that are considerably farther out of the money than your 95's.....

obtain the chicago board of options exchange booklet on puts and calls, it will explain with examples

So lets say the stock XYZ is selling at $100 a share and I think that it's going to go to 80 in a month, so I choose the expiration a month away, and choose a strike price of $95. Lets say the premium is $1.00 per share. So does this mean that it hits my target of 80 I get to sell it at $95 a share for 100 shares? How do I have these shares even though i didn't buy them? Do i get to keep my premium I paid for the put option?