any comments on the afr note 31/01/2014, page-6

OZE

Sounds like you like taking some money off the table as you trade which I believe is the way to go.
OSH was my very first stock & option trade, studied as much as I could on option trading and got most of it out of 1 book " Options as a Strategic Investment " its my bible now.

Probably like yourself I rode Osh down from @ the low $2s to sixty cents odd when the pipeline to central Qld was the big future project,

I am a bit more aggressive now as I use this stock to produce an my income but also look to the blue sky. It has been extremely kind to me once I treat some of the stock as trading stock and look for a return on funds invested.
I tend to like writting the strike price close to the share price to give a decent rate of return and look for good downside protection and that means writting at least several months out.

We are on similar paths with this stock, you have to grab some profits along the way as the divvy currently is so low and there is no franking credits.

Cheers Mattocks
For the blue sky I couple these writes with higher strikes & different months that way I not stuck with all my eggs in one basket when they expire.