A covered call strategy is slightly more risky and you need to be cautious about that. In a covered call you buy the futures and sell a higher call option. The premium received on the call option sold reduces your cost of holding the futures and thus you can make profits even with a marginal movement in the futures. If you bought TCS futures at Rs.2350 and sold Rs.2450 strike call at Rs.45 then you’re profitable up to a upper limit of Rs.2495 and neutral after that. But you need to be conscious of the downside risk in this strategy. If the stock crashes sharply, then you just have the cover of the option premium received. So this strategy must be implemented only if you are confident of the stock not falling sharply and it is better to use this strategy with a stop loss.