can be interpreted as change in the price of the option with one day decrease in the remaining life of the option. This is called strike price. This limits your potential profits, but it also prevents you losing more than you can afford.
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Now the stock is trading at 120. If you have sold an option there is always a possibility of getting assigned on any business day before expiration (in case the option is American style) to fulfill your obligation to receive (and pay for) or deliver (and get paid for) shares of underlyer. What is PCR (PUT call ratio)? 5/Trade.50 Per Contract for Options. Entry points This is the price at which you buy and enter your position.
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