So I am new to the world of options trading, after several weeks/months of reading every book I could find. I understand the basics, so I decided to jump right in and trade one. So I bought the Feb 60 call for CELG, the day before earnings came out. I paid a .50 premium. This is the question: Everything I read about options said you have made a profit when: "The price of the stock is the strike price you bought plus the price of the premium you paid", making me believe CELG needed to go from around $55 to above $60.50 for me to make any money. So CELG reports good earnings and outlook, but only goes up a little. So my option loses lots of value and I can understand this. So this morning I see that CELG is up around 5% or so to $59, so I was thinking maybe I would be less in the whole. But I checked my account and I was up a profit of about 220%. So whats all this talk about needing the stock to be at the Strike + Premium to get paid? Is that just talking about exercising your options?