On expiry day,If I sell 1000 call options at Rs. 5 and at expiry it closed at Rs 2(out-of-money). Will I receive Rs. 5000 or I will receive (5-2)x1000 =Rs. 3000 or will I gain Rs(5000+3000)=Rs. 8000

On the expiry day, if you sell any call option & it closed OTM the profit will depends on the difference of the strike price & the spot close. But the maximum you’ll get is Rs 5 per lot as you sold @ that rate.

simply answer your question, you would recieve (5-2) X 1000 = 3000 Rs, As praveen said, the maximum you could earn is 5000, the maximum you could loose is potentially unlimited.

Just to confirm - If any option expires with some value in it (Rs:2 in your example) then it will be In the Money (ITM) option however you have called it Out of the money.

Just pointing out so that there are no confusions.

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