If the options contract is in the money, it will be physically settled. The following is the implication for contracts where physical settlement is not predicated on delivery:

If you've purchased options:

• STT will be levied on executed contracts at a rate of 0.125 percent of intrinsic value (how much in-the-money the option is) rather than the whole contract value. More information can be found in this Trading Q&A article.
• OTM option contracts will expire worthless if they are out of the money. You will forfeit your whole premium payment.
If you have any selections that have been shortened:

STT is only paid on the sell-side for options, which implies you would have paid it when you started the short. As a result, the STT will have no effect on expiry. You keep the premiums you receive, depending on the moneyness of the option contract.