Sir
Without knowing much of the nuiances of trding, i ventured into Wockpharma 1850 call option (short) at the strike price of Rs.20/- and it was 5 lots. Now, the call option1850 shows as Rs.41/- and price at cash market is Rs.1875/-. My question is since I gone for a short(short selling) should i go for covering the same before the expiry of the period or can i not cover it if it is out of money and how the out of money will be calculated in the two scenario.
1. If the price is going up to 1895 or 2020 at the end of thecontract in the F&O, will it be out of money and if it is out of money, whether is it necessary for me to cover.
2. If the price is hovering around 1850.95 or 1852.00 will it be considered as "in the money" at the end of the contract, Your learned views on this is immediately solicited .
CAclubindia
