Can I sell 1000 call option of strides, currently trading at 4, when i have 50000rs with me? Lot size is 500

General
1

Can I sell 1000 call option of strides, currently trading at 4, when i have 50000rs with me? Lot size is 500.

I am new to option trading.So i have above query?

Do selling call option needs the money to be available in account like 1000x500 i.e 5lakhs should be available with me? Or can i do selling CE with just 50000?

And while expiry if strides doesnt reach 1000, what will be profit for me ?

if strides trade at 1100 on expiry, what will be the loss for me?

2

Since shorting options have unlimited risk, there is a margin requirement which is around the same amounts like what is required for trading futures. Use our SPAN calculator to know the exact values. 

Margin required for shorting options for stocks is usually around 20% of the contract value, so to short 1000 calls, you will need probably around Rs 1lks. 

At expiry if strides is below Rs 1lk, the Rs 4000 (4x1000) you received is your profit. 

If strides goes to 1100, you will lose 100 points out of which you would have received 4 in premium. So you will lose 96 points or 96x1000 = Rs 96000

3

@yashu
Options are quite complex in their pricing and has to entertained only with caution, especially for newbies.
So observe and learn thoroughly before doing option buying/selling.