I had bought Indiabulls Housing Finance futures at 722 last month and rolled over this month.
When this was at around 68 level, I bought 740 CE (call option) at 10. I have applied covered call strategy. Today this stock shooted upto 720 level and the call option doubled at 20 rupees. Now, I am bit confused on what to do as I have another 22 trading sessions to go for expiry and this stock looks like it will cross 740-750 soon.
Can anyone please suggest that I have to hold this pair till month end seeing the price where it goes... For example, if this expires at 780, then the call price could be 40 (780-740) - Am I correct ? Please advise.
I know if this expires below 740 & above 720, I will end up in profit but what if this goes beyond 740... ?