How is covered call strategy settled in Zerodha?

[dk619]

I’m long on one lot of futures and short on call, both on same expiry. Assume, I have bought a futures lot at a price of 1000Rs and sold a call of 1050Rs for a premium of 50Rs. Now at the time of expiry if the stock price ends at 1200Rs.
Since my options are expiring in the money, How will my trade get settled at the end of expiry?
Do I have to close my positions explicitly or will it be netted automatically by Zerodha?

Thanks.

[ShubhS9]

@dk619

Since my options are expiring in the money, How will my trade get settled at the end of expiry?
Do I have to close my positions explicitly or will it be netted automatically by Zerodha?

You do not have to close your trade. As you are holding ITM Short Call Option and Long Futures position, the physical settlement obligation for both positions will be netted-off against eachother. You can learn more about physical settlement here.