If I sell a single stock call that’s in the money at expiry…how will that be settled ? Assuming I have the stock in my demat with zerodha ? Will I have to create a lien on the stock or would zerodha automatically sell the stock after detecting it in my demat ? Or can single stock call be cash settled ?
It’ll be physically settled. As a seller of Call Option, you’ll be obliged to deliver underlying shares.
You don’t have to do anything.
Stock Futures and Options are compulsory physically settled. If your Option position expires ITM, you’ll have to give or take delivery of underlying shares. However, if you have hedged positions, the obligation for those will be netted-off against eachother. You can learn more about physical settlement here.