locking my local computer stops test execution in VM machine

Thanks Shankar, 

Will the first option will work say if i lock my local machine with tests running on VM in background.

Thanks

Since you're using VM to run your tests, It is good to have CI tools in place. I recommend to use Jenkins so that you don't need to worry about User active session/Locked screens.

To get started with this. https://support.smartbear.com/testcomplete/docs/working-with/integration/jenkins/index.html