option position recommendation

Hello Friends

i do futures trading and would like to move to options side also. i have some questions regarding options.

1) If i buy a bharti call option of 300CA at 8 and sell it at 11.
The thing is when i buy 300CA at Rs.8, i pay the option writer 500*8=4000 and if i sell this option after 2 days at 300CA at Rs. 11. Do i get 5500?

2) Nifty options cannot be excercised before expiry.
If i buy nifty 5300Put option at Rs. 50 and after 3 days nifty comes down to 5200. so at currently i am in 50points profit.. how can i book the profit now, Can i sell the 5300put position to book the profit, is it allowed?

bump, anyone like to clarify doubts?

Yes it is allowed. You can square your position any time till expiry!!!

Your queries are really basic. Would do you good to go through some Option sites and get acquainted with ABC of Options.

If interested, here is a word file in simple language on Options.
http://tinyurl.com/czz7uk

Also almost all brokerage houses have info about Options on their sites!!

hello rkkarnani,

Thanks for your reply.. I had read lot of forums about it but still wanted to confirm before getting into a options trade. Just be being extra cautious.

thank you