@Nishant,
I wonder how come you are trading without knowing what profits you will get by shorting that share.
I suggest you study the option theory thoroughly before applying it.
BTW, your profit comes around 26955 rupees. Use the brokerage calculator and add the stamp duty charges to it too.
http://zerodha.com/brokerage-calculator
| Buy Price | 0.00 |
| Sell Price | 27.00 |
| No. of shares | 1000 |
| Turnover-Buy | 0.0000 |
| Turnover-Sell | 27000.0000 |
| Total Turnover | 27000.0000 |
| Brokerage | 20.0000 |
| Securities Transaction Tax (STT Total) | 4.5900 |
| Transaction/Turnover Charges NSE | 14.3100 |
| Service Tax | 4.1172 |
| Education Cess | 0.0823 |
| Higher Education Cess | 0.0412 |
| SEBI Charges | 0.0540 |
| Total Charges | 43.1947 |
| Stamp duty | 1.6200 |
| Total Charges with stamp duty | 44.8147 |
| Profit before Tax and charges | 27000.0000 |
| Net Profit/Loss | 26,955.1853 |
But If you are writing the option you must square off it before expiry or else exchange will put penalty for not doing this ? Am I correct?
Exchange will not do such a thing. They will not levy penalty. Squaring off or not is option writer/buyers own choice.