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