Short straddle physical settlement

Hi there
What happens if short straddle expire near strike price,
Do I still need to go through physical settlement?

Both the legs have to expire ITM for net-off of physical settlement obligation. Below are the net-off scenarios:


So if one leg in ITM and other OTM, you will have to give or take delivery of shares depending on which position is ITM. You can check out more details here:

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I think one will expire worthless and then other might expire in the money, for which the physical settlement will happen.
On rare occasions, it can expiry exactly at the strike price which would lead to both options expiring worthless.

Thanks Suyash ,
how many days it take for call option ITM physical settlement …?

I don’t know. Probably, Zerodha support pages will have more info on that.

Thanks shubhS9
so as per above picture if call becomes in the money and we can’t square off then we can buy futures to settle and avoid penalties .
Pls clarify

Yes, if you’re holding Short Call Option which is ITM, you can take long position in futures to net-off the obligation.