im new to futures trading and am wondering about writing covered calls on futures by selling call options on a futures position that I am long in I am wondering if anyone has used this strategy or something similar I think that the amount collected could provide pretty good returns because of the low cost of owning futures positions compared to stocks. Also if selling covered calls is even possible what kind of margin would I have to post and how liquid are options on futures.
thanks for any replies

It depends on if you're in the money on your futures position and if you write the call in/out/at the money. It will vary your risk profile. if you enter both the long future and short call at the same time your effectively writing a put. so you'll be betting on upward direction. Depends really a lot on what your outlook is.

I plan on writing the options fairly deep in the money because it will give me some good protection im looking for a low risk strategy that will help me get small returns or break even just something low risk to get my feet wet thanks for the reply