When you sell call/put and dont do anything till expiry following things can happen
1) If at the expiry spot rates are lower than sell rate ,you may get profit.
2)REVERSE is if the spot rates are lower you may loose
3)if the spot rate is lower/higher than strike rate,depending upon if it is a call or put you may loose entire money.
4)if the trade turn into opposite direction before expiry , and crosses your margin deposit ,exchange/broker will square off the deal and you may loose infinitely.
so if you sell options (which one should not do unless he is HNI or an expert) it requires to closely watch the movements and not go to sleep till expiry.
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