Can you profit from options that don't hit the Break Even Point?

I'm looking to trade options in the near future but I have a question.
Is it possible to profit from an options contract if the stock has not hit the Break Even point yet?
i.e.
Apple -> current price is $60
1 x option contract is $15 with strike of $65
let's say the BE point is $70 here....
in about a month, assume the current price of the apple stock is $69 and the options contract purchased has gone up by $2 to $67...
could I then profit if I decide to sell the options contract back into the market and profit $200 (from the sale of the contract)??
The price is still below the BE point, but I could still profit?
thanks.

I think you are trying to use the "break even point at expiration" and use it before expiration when it is not applicable. Prior to expiration you can sell an option contract you previously purchased. If you can sell it for more than you paid for it you will have a profit, regardless of the stock price.

I should also point out there are some serious mistakes in your example. They may just be typos, but I'll go through them in case they are not.

<<<Apple -> current price is $60
1 x option contract is $15 with strike of $65>>>

ok

<<<let's say the BE point is $70 here....>>>

It is not. The BE point at expiration is $15 + $65 = $80.

<<<in about a month, assume the current price of the apple stock is $69 and the options contract purchased has gone up by $2 to $67...>>>

If the option was $15 and it went up by $2 it would be $17, not $67.

<<<could I then profit if I decide to sell the options contract back into the market and profit $200 (from the sale of the contract)??>>>

Yes. Your profit would be $1,700 - $1,500 = $200.

<<<The price is still below the BE point, but I could still profit?>>>

That is because you did not wait until expiration to close the position. The "break even price" only applies at expiration.

Using your example, I am assuming you are talking about buying/going long a "call". If you have shorted the option, you would make money by the stock not going above the break-even point, as the buyer of the call wouldn't exercise it, and you would have the selling price as profit- $15.

If you have purchased a call then yes, you can sell the option and make a profit if the price of the option goes up.

You sound a little confused and the information you provide in your example has some problems. You need to learn a lot more before you start trading options. I am not putting you down I am just trying to save you some money. Remember you are trading against professionals, and they will have no mercy on you. Their job is to make money by taking it from someone else. For every option trade there is a winner and a loser, every dollar you make you have taken from another trader. The professionals that do this are the best of the best and ave very good at taking money form the average guy. Ok, I will step off the soap box and answer your question.

"Can you PROFIT from option trades that don't hit the break even point". No, you can not profit. The break even point means that you break even, you don't lose anything and you don't make anything. If you bought it for $15, then the break-even point is the level at which you will sell your position for $15. Profit would only be achieved if you sold it for more than you bought it for. By selling it for less than the BE point you simply have not lost everything you put into it.

If you really what to trade options read as much as you can and then simulate trading for a while before you take the plunge. Maybe you do have a knack for it. If you can make money during your simulated trading time, maybe you have what it takes.

Options pricing is one of the trickiest trading strategies to simulate, much less calculate. There are too many variables that factor into the formulas to make them more than just 'theoretical' prices. Greeks, interest rates, dividend yields, time premium to expiration, volatility of the underlying security or commodity.

You can make a profit below your break even point (BEP) if you don't plan on exercising the option. Simply put, your Break-even-point is jut that - the point at which the price you paid for the option (the premium) is less than the cost of the price you paid plus any associated fees for assigning the option to the person you bought it from. For a call, it turns out to be a wash, as you end up with 100 XYZ shares for the in the money strike. For a put, you sell 100 XYZ shares for the in the money strike, and basically wind up where you started before you bought the shares in the first place. The put is a hedge play.

'Your' BEP assures you that the writer of the call ends up eating your assignment fees in the case of you exercising the option. If all you do is trade the option, you don't have to worry about a BEP.

I would advise against buying unhedged options though. They're simply too risky. Long calls and puts are pure speculation plays, and mostly losers. Even on so-called 'sure' winners. While the chances of huge gains are enticing, there are better options plays out there that aren't as flashy, but have a much better rate of return over the long run.

Do a lot of research. Options are fun, and can add a lot of flexibility and stability to your portfolio if traded correctly.

Boy, you don't understand the way this works. Do more reading before trading with real money.

First, if the option is $15 with a strike price of $65 then the break even point is $80.

Second, the strike price doesn't change. It can't go up to $67. The price of the option might go up by $2 to $17.

Third, the effect of price erosion (technically this is called theta) will likely offset any gain caused from the underlying stock going up (this is called delta).

To answer your question, yes you could make money on long options even if they don't get to your break even point. For example, if the implied volatility goes up then the option becomes more valuable even if the stock doesn't move.