The seller will lose (1260-980) - 59 = Rs.221. If his account is going into debit and he doesn’t add funds, then the broker will buy back his position and now there will be a new seller.
On expiry, the exchange will settle the funds to you, in this case Rs.320(1300-980).
No one knows where your stock will settle down on expiry, if you want to exit or protect your losses. Then…
Many arbitrage strategies are automated that is why your order has been executed even though no seller is visible in snap quote.
Similarly if you place your order below its intrinsic value, which would give arbitrage opportunity for some traders, they would buy again (though no one is visible in snap quote). You can exit with some losses.
Try to place order start from 180 and modify one rupee down the line up to your loss bearable Point.
At current price (31-10-2017), your order may be executed between 165 to 175
Alternatively you can buy OTM put options like you can buy 700 or 710 put, thereby you can protect your losses at expiry.
Market is smarter than we think.
I think you could sell Tata Steel fut lot and wait till exp to settle and sit peacefully without worry nothing to lose or gain … except margin blocked
My friend, I created AMO and immediately at 9:15, my order got executed. I made a loss of 4000 and was out. Glad I managed to exit.
I need to read more about options. Do you think theoptioncourse might be a good source for learning?
In some posts, it was mentioned tht deep ITM n OTM option contracts are prohibited fr trading on Zerodha platform. Is it only fr index options? If not, how ur trade got entered at the first place?
The best book for beginners is Varsity Modules Option for Professional Trading & Trading Strategies.
If tata steel share price would have fallen then your loss would also have increased significantly further.
Markets already ended up on a negative note so glad you exited with nominal loss.
Hi , you should have bought a 740 Put immediately as that would have hedged you from adverse price movement in the stock. If the stock had fallen sharply,your trade would not have been executed.
Hi, I want to learn about hedging, etc. Can you recommend me a source? I came across theoptionscourse not sure if I should start from there or from “Varsity Modules Option for Professional Trading & Trading Strategies” or some other reference from your side?
Thanks so much.
How much is your trade size?
You should definitely start with Options Theory on Varsity. It’s written with care in a very simple format with very effective examples. Go ahead and start, it’s a good way to spend this weekend.
I have downloaded the PDFs. Cannot wait to dive into it. 
Thanks.
I want to make minimum of 2 lakh a month to start with. I am willing to lose 8k to 10k if I can make 16k to 20k.
As I want to start less, maybe willing to lose 4k to 6k and get 8k to 12k…
I asked about your trade size & not your goals.
Trade size would define your capital which you would be risking. Hedging works great if you have high trade size otherwise hedging will cost you alot & eat away your profits. Because hedging is like insurance cover & you have to pay your premium which offcourse comes at a price.
Buddy, I am glad you got out luckily with minimal damage. Actually I saw your post today otherwise I would have written this earlier. Since you had accidentally bought a deep ITM Call Option and wanted to get out without looking for profit, you should have immediately bought a deep ITM Put Option (which still had buyers and sellers with decent bid-ask spread) so that it had minimal time value(which will vanish at expiry). This would have made your entire position neutral to the price of Tata Steel at the time of expiry. From that moment onward if Tata Steel moved up then the Call option would have gained value(expiry basis) and the Put Option would have lost value (expiry basis) and vice-versa if Tata Steel moved down. Basically your position would have become immune to the movement of Tata Steel at expiry. You would’nt have to stay fearful of Tata Steel falling which could have given big loss. Although, I agree that some more of your money would have got blocked in holding both the Call and Put till expiry, but it would have kept you safe from downside risk.
So glad that you wrote! So much to learn. I really appreciate that you took time to guide me here. I understand now that my fear was lack of knowledge. Thanks again so much.
Best wishes,
Angel
Got it!
So, for tatasteel 1000 lot size, I need to have about 4 lakh for hedging and additional 1 lakh is some loss starts happening… This would mean that in a very conservative way, my margin will be stuck till expiry unless I exercise to close buy hedging positions… or play with a stoploss.
Best wishes to you too! Happy learning! You should learn Options well, they give you a scope to make money without depending on market direction movement. That is, without betting on which direction the market will go you can make money- wonderful is’nt it? 
You can buy call/put of relevant strike price too which would be far cheaper for you if you dont want to keep upfront margin while writing options.