So, typical covered call- Own the underlying stock, Write OTM call
Rather than owning the underlying stock in cash & carry, I own a futures contract on that stock. Then I write covered call on that.
Benefit of the above- Less capital requirement (~ approx 50K margin blocked + MTM, rather than 5 lakh tied in buying the stock outright)
Problem with the above- I loose premium paid on the future (this basically wipes out everything I earn from the covered call premium).
IS there some way I an save the premium? I can write 2 CE with deltas less than 0.3 (one CE to pay for the premium I need to give for the future and 2nd CE to actually earn me something on the covered call). But this increases my risk as the 2nd CE is basically a naked one.
Anyone else suffering the same problem and any ideas how can we save the premium?