Covered call option query

Presently holding Larsen & Toubro shares 250 qty at Avg price of Rs 1520,  Now I want to sell 1580 Call trading at Rs 18.what happens if

  • If price of LT on expiry is Rs 1600 – Can I sell my holdings at 1600 and what happens to my  call position…Can any one exactly tell how this position should be closed.
  • what happens to my call position if not squared off on expiry.
  • How exactly delivery of stock happens,if the option buyer exercises his option

->If the expiry is at Rs1600, 

Holdings - yes, u can sell at 1600 if u wish to.                                                    Call Position - u wud be in a loss of 250*2=500Rs(1600-(1580+18)) as u hv sold the Call at 18Rs

->If the Call position is not squared off, it wud be closed in Cash mode with a loss of 2Rs.

Please let me know why are you not considering the profit of 250*80 because he bought the shares at 1520 and selling them at 1600. he will lose only 2 rupees per share because he the spot proce of the option 1600 call will be 20 while he already got 18 when he sold the 1580 call. What is missing in my reply?

One will gain 80 rs in equity and loose 2 rs in call option on per share basis. Also in India all options are only cash settled and no point of exercising of options for delivery of underlying.