Hi,
I am learning stock market, I have a question If I am trading stock f&o like Wipro and suppose wipro’s current price is around Rs.430 and I sell 450 CE @ Rs.4 Premium (which is OTM) and on expiry day my 450 CE is available @ Rs.7(where I am facing loss) if I doesnt square off then what will happen, Will my position get cancelled?? or I have no choice than to square off my position @ Rs.7 ??
Hey @Sushant_Rai
Because the contract is an OTM (out-of-the-money) one, it will expire without value, resulting in the entire premium paid being a loss for you.
You can refer to this support article to know more on option expiry.
If you are new Varsity is a great place to learn more about options trading 
Hey @KarthikAcharya
Thank you for answering my question but I didnt understood… How much loss I will incur as a seller premium which I was going to receive at the expiry or premium where liquidity is available like I have mentioned in my question @ Rs.7 ??
Based on the above example you received a premium of Rs 4, assuming a lot size of 100qty, you receive totaling amount of Rs 400.
If due to volatility, demand & supply, the price could rise to Rs 7 during market sessions, exiting the contract would result in a loss of (7-4) = 3*100 = Rs 300.
Yet, if you do not exit the contract and the contract remains out of the money (OTM) by the end of the market session, it expires worthless at 0. In this scenario, you’ll earn profit of the entire premium received, which is Rs 400.
Hope this helps you
Ok Ok, Thank you so much Karthik 