This is all that I have been doing for past 15 months.
Been doing it with fundamentally good scrips only.
In Bharti I started last year May when it was trading at 550. I started selling 500 puts every month. Infact it touched 400 in the next few month. I continued with selling 500 puts and didnt panic. I knew it would come back one day. Took 3 months to cross 500 again. And I slowly started increasing my strike every month. Now past 3 months I have been selling 550 puts.
Basically Airtel is where it was a year back. But just with premium from selling puts I have made over 3L here. And margin required is roughly 2.5L. So when the underlying has actually given negative returns I have got more than 100 percent.
This is just one of the stocks that I have used. This may not work all the time. But for me, so far so good.