Is it possible to buy enough gasoline to sell one contract for covered calls? That way I can have Gasoline for my work transportation needs and at the same time earn income. and if It goes in the money all I have to do is deliver the barrels of gasoline to a port correct?
What is wrong with this question? You can sell covered calls on equities, why not Gasoline? The contracts trade on the markets. If I own the gasoline I do not have to worry about variance margin and I earn income and use a little bit for my car.
I know this isn't a serious question but I figured I'd answer anyway... 1) Illegal to own gasoline in your home, at least in the US. 2) Gasoline begins to degrade faster than crude oil does, so you most likely would not be able to deliver if assigned on your future. 3) Which brings me to a 3rd obvious...if you get assigned on the call you get short a future which you can get rid of before expiration... 4)Just so many reasons this does not make sense, including that NYMEX very likely would not allow you to deliver your gasoline...and the list goes on. (storage space, etc.)