How does a "close to flog a Call option" trade go and get calculated?

I own be thinking going on for trading option, but don’t be aware of comfortable to start it unless someone can sustain me clarify an issue as follows. (Data used contained by the following example are TRUE facts I collected surrounded by the recent olden.) On 8/16, premium for Jan 12.5 TLAB Call be 0.25. On 8/31, its premium have gone up to 0.60 but the share price have with the sole purpose gone up to 10.55. Obviously the contract be still out-of-the-money by 8/31 as 10.55 is smaller amount than 12.75 (i.e., 12.5 strike + 0.25 compensated premium cost if I bought it on 8/16). However, if I bought the Call on 8/16 at 0.25 and chose to “sell to close” it at 0.60 on 8/31 (as defiant “exercise” it), how would a broker subtract my trade? Did I cause 0.35 profits (i.e., difference of 0.60 premium income – 0.25 premium cost)? Or, will the broker put in the picture me that I have a 2.2 loss (i.e., 10.55 current price – 12.75 total trading cost)? Once again, I chose to “sell to close” it, not to “exercise” it. Can anybody supply me the right answer? Many appreciation!

Answers:
Options trade merely close to stock. They travel up and down. You own the leeway to any exercise the risk, or to merely flog it outright. If you salaried .25 for an substitute, you can go it for .60 and keep hold of the difference. Just remember that its not other so glib. 85% of adjectives option expire worthless.

How does a "close to flog a Call option" trade go and get calculated?

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