When to use
When you are very bearish on the market.  The more bearish you are, the more out-of-the-money (lower) should be the option you buy.  No other positions give you as much leveraged advantage in a falling market (with limited upside risk).

Profit Characteristics
Profit increases as market falls.  At expiration, break-even point will be option exercise price A - price paid for option.  For each point below break-even, profit increases by an additional point.

Loss Characteristics
Loss limited to amount paid for option.  Maximum loss realized if market ends above option exercise A.  For each point below A, loss decreases by an additional point.

Decay Characteristics
Positions are a wasting asset.  As time passes, value of position erodes toward expiration value.  If volatility decreases, erosion speeds up.

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