What happen if we don't set of our position in options on expiry

What happen if we don’t set off our position in Option on expiry ?
Out of Money option

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If your options expire out of the money, it is worthless. You don’t have to sell (if you are long) or buy back (if you are short).

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if its index option you dont have to do anything on expiry, you can let them expire for what ever profit/loss they are at.

But if its stock option which is In the money, you will have to maintain required margin to take delivery or required number of stocks to give delivery at the time of expiry. so avoid ITM stock option on expiry week if u dont keep req margin/stock. for out of the money stock option there is no reqirements.

@Joe_Maxpayne

Could you explain how this physical settlement works?
If am having a ITM call option on the day of expiry,
a seperate Market CNC order generates automatically or?

i never took a physical delivery so i dont know exactly how it works. my guess lets say u have 3k of ITM sbi option, at the end of day your broker will place 3k of sbi delivery order on your account.

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