A strangle or straddle is created by shorting both a put and a call. At expiry, one of the contracts becomes ITM.
Referring to this post doesn’t explicitly mention what if the give-and-take delivery is equal in Options.
So in the above scenario, do I have to physically settle the ITM contract?
When one of the stock options contracts become ITM at the expiry, it will be physically settled.
ITM Short Put + OTM Short Call = Take Delivery
ITM Short Call + OTM Short Put = Give delivery
When both contracts become ITM at the expiry, only then both will be netted off with each other.