Yes correct. Nifty 6200 Call, if Nifty ends at 6200 also, the value of it will be 0 and I dont think anyone will give 1 to buy, unless they want to lose Rs. 1.
Sanju,
Whenever you sell any Option, you should be worried only if the Option becomes ITM. If it is an Index Option, this worry is only on expiry day since if the Index Option sold by you becomes ITM before expiry date, it cannot be exercised by the buyer. So, at expiry, if your Option is ITM, you have to worry about squaring up by buying, or letting it expire, with exchange doing the settling.
If, on expiry, the Option sold by you is still OTM, you get to keep all the premium received on selling. Lucky YOU!
But don't tell me NIFTY 6200 call can be sold for rs 50!!! With NIFTY around 5000 today, a 6200 Call would not be over RS 1-2, which is not worth selling, considering the commission costs.
-Rakesh