Say I call a stock at $50 for a price of $5 for 30 days. Now, based on my understanding I will pay a fee of $500 for the options trade - (cost is $5 and the call is generally for 100 shares)
Standard options are for 100 shares. Corporate events (some stock splits, special dividends, spin offs) result in non standard options. Non standard options can be a royal PITA.
Yes, you will pay $500 to buy the call plus a commission (unless you are trading commission free).
If within the first 10 days the stock reaches $60, Can I sell the sell the option and cash out? Continuing with the previous example, will I pay $500 upfront for the trade and at the end of 30 days, $1000 be deposited in my account? Or only the net profit/loss is deposited or withdrawn from the account at the end of 30 days ?
A long call gives you the right to buy the stock at the strike price. You also can sell the call to close any time you want.
If the stock is $60 within 10 days, it should be worth a minimum of $10 (its intrinsic value). If you sell it, you will receive $1,000 less a commission.
If an option is one cent or more in-the-money at expiration (at $60, yours is $10 ITM), the Option Clearing Corp (OCC) will automatically exercise all options whether they are long or short. This is called Exercise by Exception. If you do not sell to close your call, for equity options, you will end up with a long position in the underlying (with market risk). Index options are cash settled.
If I call at $50 and the stock price never manages to reach that price in the given time frame then the order is just canceled and there is no transaction at all ?
The time premium of your call is going to decay every day. It will be zero at expiration. If the stock is above $50 at expiration, your $50 call will be worth its intrinsic valie (stock price less the strike price). If it is below $50 at expiration, your call will expire worthless.
I would suggest that you pick up a copy of "Options as a Strategic Investment" by Lawrence G. McMillan. Read it. Then read it again. It is well written with many clear examples. Well under 100 pages or so will give you a fundamental understanding of covered calls, synthetically equivalent short puts and spreads. It also explains a variety of other option strategies and should they intrigue you, you can read more.