How to short a ITM option?

I am a beginner in option writing. All i want to know is it possible to make profit in writing ITM options. Take this case.
Spot Nifty is at 9960 on 25th July i.e a Tuesday so i shorted a 9800 PE at 7. Now as there is only two day to expiry so my view is that Nifty cannot fall 150 points in just two session. So my 9960 PE option will become zero and my overall profit will be 7x75=525. This was OTM so easy to understand.

Now come to case of ITM. Suppose today i.e Tuesday 25th July Spot Nifty is at 9964 and i shorted a 9800 CE at 174 how will i make money in it. As Spot is already trading higher than Strike price. Here how profit and loss are calculated and most important on expiry of course the value of this call will never become zero. So in this case if wont become zero i am definitely going to make a heavy loss.
What strategy to use in writing ITM options.

Generally our view is when we thinks nifty wont cross a a certain range on either side we short a OTM call or put accordingly. But what should be my view when shorting a ITM. I have zero knowledge about writing ITM options

Please help

My friend you need to first read options basics on zerodha varsity. 9800 PE is not ITM but in OTM so can go to zero on expiry as long as nifty stays above 9800.

i’m sorry…i missed your 2nd para…

Hi Durgesh, I have the same question … Can you please let me know if you got the answer… how ITM options are settled on expiry … specifically if you only short the option and not buy future against it and your margin money is blocked …