I know how options work, but I am curious about what happens when I sell the option without exercising it. I have not bought anything yet (although I'm close), but I have a hypothetical situation. Let's say the current price of a stock is $12 and I buy a January 2010 call option with a strike price of $17 for $.50 per call. If I have $2000 will that enable me to buy 4000 call options or just 40 call options because the options come in 100 share increments? If the price of the stock goes up to $25 (in a VERY optimistic scenario), and I want to sell it WITHOUT having to exercise the option how does that work? I'm guessing the price of that option would increase because the stock price increased, but I wasn't sure if my profit comes from the stock price itself ($25 stock price-$17.50 strike price=$7.50 per call) or if it came from the actual option prices? I am sorry this is so long, but I think this is a great way to make a profit if you don't have too much money. Any help would be appreciated, thanks.