wajo

[Guest wajo]

Hello, I have an options question please.

I am very confused and do not understand.

If I was to sell an option call ( 30 day option call ) at a strike price of $20 for $7.00 (I understand the 7.00 will diminish due to decay).

\and lets say that $7.00 at the last week of expiration is now worth $3.00. 

-Will the breakeven for the person who bought the call still be $27? If not what would it be. > because the price went down due to decay.

-To me it seems If I was to sell a vertical the decay would put me more in favour increasing my odds if the price went against me because the breakeven has now reduced.

Am I right?

you help would be warmly welcomed.

thanks..