'Taken up Against'17 Sep 2020 15:44
Imagine a scenario where someone was short on IAG before the ex rights day, like me. IG say "you can either buy the rights back or leave the new position to expire. If you leave the position, you will be at risk of being 'taken up against' - meaning the rights will automatically be taken up and you will short the shares at the subscription price".
I interpret this as being I can buy back now or in the next week at 68p or if I do nothing, I will be short on the new shares at 85p? I assume that I don't want to be 'taken up against'? If I close my nil paid shares, do I get to keep my short on the ex rights shares at 130p? Many thanks in advance.