Little Urgent!Should I square off or physcial settlement?

When we move towards the last week. Zerodha will ask Margin of
400*150 = 4,50,000 Rs. as stocks are physically settled. Today, your account should have X% of this amount in cash, each day as we move towards the expiry this amount will be 50%, 70% etc.
Keeping this cash is not better for ROI and also you don’t intend to buy the shares right.
So the next best option is to square off. Whatever premium difference between buy and sell x lotsize is your loss.

There are other ways to convert this as a spread by selling 3000 PE etc but looking at the post you seem to be new to these things.
Exit and move to next month your hedge.

Also note that buying a Put offers protection till 0. It is not ideally what you want. There are better option strategies to hedge your position.

Also your broker may