Say, I have 500 (which is equal to lot size) stocks of Reliance in my account and I sell a covered call on the same script at some OTM strike price. And, say, I also have the same amount of cash in my account that covers the margin for the calls sold.
Say, the option goes ITM near the expiry, and I, still, have the stocks in my account. Will the increase in margins (which Zerodha does in the last week of expiry) still be applicable to me?
If yes, will the shortfall in margin result in a charge of interest in my account or squaring off the position by RMS? If both things are possible, what are the scenarios in which one or the other may happen?