Lets Make some Money

[nirbhay Dixit]

You will never loss when you have 125 shares of SBI in cash , have sold 1 call contract (at whatever price) and the share price has gone up. In this example you will make a nominal loss in increase in value of call premium increases, but the value of your cash position would also have increased by same amount. So if you dont want to take any nominal loss at the end of the contract then sell a part of the cash position.