Profit booking on option premiums?

if i buy infosys option on january expired at 10rs with target price of 1100 and after 5 days if i book profit on premium suppose 5 multiplied by lot size and at the day of expiry if it goes to 1200 should i have to pay 100 multiplied by lot size to whom i sold??

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please reply to my example.

when you have sold in profit , then you are earning profit, you don’t have to see what happens after when you are not in the contract

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so if i sold to x person and he keeps till expiry and at expiry he reach more than target level who will give him profit??

he will get from market, as we get profit when we exit in profit
forget that theory that looser pays to buyer, exchange does all this work
as person A sells and person B buys, according to theory a pays to B if a looses, but in practical exchange like NSE deducts from A’s trading account and credit to B’s trading account,

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so first buy at low price and sell at high price make profit and forget…:slight_smile:

that’s the basic of whole the world is running on
buy at low sell at high, or sell at high buy at low