Beginner Question

Selling Call Question

I had some confusion on selling puts on the Nifty.

Lets say, I sell 50 Call of Nifty at a Strike Price of 5300 and a premium of Rs.100. Now, I get Rs.5000 in my account. If on expiry, the spot Nifty closes lower than the Strike Price of 5300 but the premium is higher than Rs.100 (what I received), and I don't square off my Call, will I get to keep the Rs.5000? Or will the exchange square of my trade on expiry so I have to pay the difference?

You have mentioned both call and put which one is it?

Anyway if it is out of the money at expiry the premium cannot be as u say, and u keep the premium .

Sry, I have edited the question. I meant if I sold calls but I don't buy them back, and on expiry the spot is lower than the strike price but the premium is higher than what I received, what exactly happens?

When you SELL a PUT , you are bullish, now all depends at what level the Nifty closes. Leaving aside STT,Brokerage etc.... you keep the Rs.5000.00 till the Nifty closes at 5300 or more, for every point below 5300 you have to pay back Rs.50/- the Nifty Lot size.
Say it closes at 5250, you pay back 50X50 = 2500 and retain the balance!!! If it closes at 5100, you loose the 5000 received and additional 5000 (5300 less 5100= 200 so 2000X50= 10000).

On expiry the Premium looses all time value and hence cannot be higher than the difference of strike price and underlying price !!