Consistent returns using Covered Calls 

You can pledge right?

@@sreepathysp6840 50% of the margin should come from cash equivalent sources. If you just pledge niftybees you will have to pay interest to broker who will finance 50% cash capital for you. This will cut into profit. Also keep in mind that loss or win from capital gains cannot be offset against loss or win from options profits when calculating the tax.

The example we have shown is just for demonstration purposes and to make it easy to understand. But we need to give some space to the underlying to move. So, taking a 5% higher strike is a good thing to do, even if we get a low premium there. Because you'll gain from the appreciation of the underlying. It finally becomes a trade-off between a. You want to collect more premium. b. You want to give your underlying some space so that you can earn from its appreciation

@@BeSensibull Glad to hear your reply. Thank you very much for making such good video. Why we can not shift premium amount to next expiry in case spot price reaches strike price of call sold ? There should be some way to keep doing it each and every month. If nifty or share reaches strike we calculate loss in premium and sold next month expiry call with similar amount of premium. We all know each month nifty can not rise 3 % so even if loss is done in premium it should be covered in next month expiry by selling at the money call or some far call. Pleas let me know if I am wrong.

2500 per lot ? you mean exchange fee?

The example we have shown is just for demonstration purposes and to make it easy to understand. But we need to give some space to the underlying to move. So, taking a 5% higher strike is a good thing to do, even if we get a low premium there. Because you'll gain from the appreciation of the underlying. It finally becomes a trade-off between a. You want to collect more premium. b. You want to give your underlying some space so that you can earn from its appreciation.

Thanks for the clarification. As it is from the Sensibull team my expectation was a practical real case being used. Anyways your videos are good and educative.

u are correct

No. Only OTM should be done.

You're welcome💗

You can watch it here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-9AY0n-wBakw.html