Nifty is going at 8500, i write 8000 call on last day of expiry at 200 rs premium, what will be my profit or loss in it if nifty increases or decreases or will i kept the whole premium?

General
2

8000 Call option is deep in the money when Nifty is @ 8500. Writing this option especially on the last day will surely result in a loss. Also the premium will be 500 and not 200.

3

At Spot 8500, Nifty 8000 call will b atleast 500 (Intrinsic Value) or above 500 if there is any time value.

Also if u let it expire, u will have to consider impact of STT which is much higher if u let option expire at expiry without squaring off.

4

thanks , sir for helping me

5

Mandar, when you write options you would have already paid STT, so there is no STT if you let your short options expire or square off. Check this blogpost: http://zerodha.com/z-connect/queries/stock-and-fo-queries/stt-options-nse-bse-mcx-sx

6

Hi Nithin Thanks. Got it clear now, STT payable on selling side of options and not at the time of covering or buying