Option sell Confusion

Hi team, Suppose for example lot size of X share is 8200 and i hold those shares. So i dont have keep margin for call sell. Now strike price is 60 and i call sell it in 65 price is 2.65. If within 5 days it reaches to 67. I believe to exit anytime. I will give back my shares. Premium will be zero or i will get entire premium. If i will give back my shares. I am confused what will be my profit

Is it profit will just 65 minus 60 = 5. Which will 5 multiply 8200=41000 or 41000 + full premium which 2.65 multiply 8200 + 41000 =62730

Even if you have underlying shares, when you are Shorting an Option, you will needs adequate funds in your account.

When you exit before expiry, you will not have to give delivery of shares. Physical settlement only happens on expiry day.

You took short position when underlying was at Rs. 60 and are exiting when it is at Rs. 67, here the price has went against you, so in this case you will be booking losses.

Eg. You shorted 65 CE at 2.65 when stock was at Rs. 60, when you exit stock is at 67 and 65 CE is trading at 3.65, so you are making loss of Rs. 1 per share.

Would like to suggest you to go through this module on Varsity, you will get better understanding.