Hi Guys, I picked up the book "The Option Trader Handbook" the other day wanting to learn a bit more about options. It turns out, though, that this book may be on a slightly more advanced level than suits me at my level of knowledge. In the book it is described (upon writing about Implied Volatility) that if one purchases a relatively expensive call option, and the Implied Volatility comes crashing down resulting in lower premiums, a stock would have to move even higher in order for the investment to turn out profitable. This, to me, is weird as I thought you only paid the premium upon initial purchase. If I do not close out the option by exercising it at some point, why does a lower premium (now versus when I purchased the option) have any influence on my profits? Wouldn't changes in premium only alter my P/L if I closed out my position? If anybody knows the answer to this one, I'd be grateful to have your answers. If anything is rendered unclear, please notify me so that I can make myself clearer. Thanks.