Selling of call / put option

Suppose today’s spot price of nifty is 8001. If I short sell nifty call option of strike price 8500 at Rs…70/-

What will be margin required When i will get profit and when i will in loss. Please explain with examples as i am very very confused about this scenario.

To sell option of nifty one lot requires margin approx 14000 rs, your profit if nifty does not cross 8500 till the end of xpiry

And if market at 8000 and you sell suppose 8000 put, you will be in profit if market remains above 8000 and even if it ends at 8000, because ultimately premium becomes zero

Can you explain with an example of what happens in the above scenario if I square off the next day and when i let it expire.

  1. Nifty is at 8600
  2. Nifty is at 8000
  3. Nifty is at 7900
    Please explain the above 3 options when I square of the next day and when I let it expire.