Call writing did not buy before the expiry date . what will happen ?

General
1

Hi Team ,
Assume i have done call writing and did not buy back before the expiry . what will happen for this scenario .
Eg:
share price of A company on the expiry : 200
I have sold the call of 210 for 2 rs and i am currently holding it by the expiry date .
How this call write is treated ?
thanks for helping the retail traders .

2

Ur strike price of call writing us 210. Expiry time spot price is 200. So as a call writer u will get to keep the premium amount. No STT as u already paid it while writing call option.

U need not square off as the option has expired worthless and hence as a call writer u get to keep the premium . ur margin blocked money will be released by broker.

3

What will be the premium to be paid in this case .
call writing at the strike price : 210
closing expiry share price : 200 .

as i did not purchase the call before an expiry how much amount i need to pay as a premium for this .

4

sir u are writing call option. As a option writer in this case u need not square off ur transaction as this call has expired worthless out of the money.

The premium amount will be collected by you when u write this option to the buyer. That premium amount u can simply now keep with yourself

That is ur profit. That premium amt will vary . it is not arrived by a formula.

U need not purchase back or square off in this scenario

5

Perfect Krish.
Got the answer .
Thanks for taking time to respond my query . appreciate a lot for helping new comers.

One last question .
Assume if the closing expiry price is at 215 .
I am holding 210 call writer in my account .
if i did not square off by the expiry date what will happen to my 210 call write position .

Thanks for your help sir .

6

OK. Ur strike price is 210. Now call option expired at 215. So for simplicity assume 1 lot u wrote @210 strike with lot size 50 units per lot

(215-210)X1X50 = 250

Assume u already collected premium Rs 15 per one lot

So loss= 15 MINUS 250 = 235

This 250 is called intrinsic value. Always remember call option writer loss is inferred only after adjusting the premium against the intrinsic value.

No STT in this loss calculation. Because while u wrote the option and collected premium u already paid STT.