How does option selling become profitable?

Suppose if i sell call option at 13(lot size 800) and option expires at premium of 3.
So what will be my profit on expiry of option?

Simple 13 -3 = 10
So 10 X lot size 800 = 8000
8000 will be ur profit

1 Like

What’s the strike price? And at what price underlying closed?

Then on expiry i will receive 8000 as premium