Well, things didn't as planned. I wanted CBA to stay under $100 till nov 16 but it jumped to $102.30 or so last week. When a share price rises above the strike price all we have to do is roll the option over and up to the next month and strike price. If I had done this the day before CBA jumped to $100.30 I would have made an additional $6000 between Nov and dec 21. But i panicked and did it on the day and lost about $300 ($16,000 profit - $300 = $15,000 or so). The reason i did the trade on the day i did was because there is that American options can be exercised at any time and there was very little premium left in the option, so there was a small risk that I could be exercised. I'd rather miss out on a few thousand dollars than be exercised and then have CGT implications. CBA fell on Friday (the day after i did the trade) which made my decision a bad one. If i had rolled over the option on friday i would have made $3000 for the next month. Now I have to site on the position until the $102 option decays a bit - or cba falls a bit - before i can roll it over again and, hopefully, this time, make some money. This is why options are such a /good way to make money. Even though the share price rose $2 past my price (15,000 x $2 = $30,000 in share price), there is no loss. The $104 dec option has risen above the price i sold it at. But the expiry is so far away that there is nothing that can be done for now but to watch and wait.
