A covered call strategy is one where an underlying stock is bought and then its ATM call option is sold. The value of underlying stock should be equal to 1 lot size of options e.g. if the stock's option lot has 25 shares then 25 shares need to be bought. This trade can be taken on monthly basis using monthly expiring option. There are 3 possible outcomes after the call option is sold: 1. Stock goes up b/w previous expiry date and current expiry date- In this case any increase in stock value will be offset by loss in call option 2. Stock remains at same price b/w previous expiry date and current expiry date - In this case there will be no increase in stock value but the entire call option premium will be profit 3. Stock goes down by next expiry date - In this case there will be drop in stock value but the entire call option premium will be profit This strategy works on assumption that over long term the underlying stock will give gains in spite of fluctuations in stock price over s...