The premium of an option is paid by the buyer to the seller upon the sale of the contract—not at the contract's expiration. Option premiums are not refundable. Options may be sold and resold many different times before their expiry, as most traders don't actually exercise them.
Do you get option premium immediately?
The short answer is that you get the premium immediately upon the successful execution of your option order or trade. That doesn't mean, however, that you're immediately profitable.
At what time option premium becomes zero?
On the expiry day, the following become zero. All the calls whose strike price is above the closing price in the cash market. All the puts whose strike price is below the closing price in the cash market. Rest of them have value to be paid by option seller.
Who will pay option premium?
Options premium is the price paid by the buyer of the option to the seller of that option contract.
How long do options premiums take to settle?
Unlike shares of stock, which have a two-day settlement period, options settle the next day.