A follow up on http://www.marathontrader.com/content/view/21/2/ dated August 04, 2007. An extremely successful call for a strangle on MTL by fellow Marathon Trader, Timothy Tan, gave a well above 2000% returns on multiple option strike prices.

Another follow up on http://www.marathontrader.com/content/view/27/2/ dated October 01, 2007. RVBD made another up-wave on its sideway trend since finding price action support at $40.

Following our fellow Marathon Trader's advice to strangle MTL during August with September's option contracts have created an extremely successful trade with opportunities to follow up with multiple free trades.

The $45 call was worth more than $7.00 during the last few days before September's expiration. And experience tells us that once a triangle is broken with the right direction determined, a trader should always close the losing position of the strangle and add to the winning position. Not to mention the free-trades opportunities it continues to create.

The price of MTL never slowed down until a recent high of slightly above $75. A whopping 100% increase from its low of approximately $35 per share. And in options terms, it meant well above 2000% retuns  on multiple strike prices for October's contracts.

In other words, a single contract of $250 on the call side became well over $5000 in less than two months. Didn't you wish you were paying attention back then?

Hats off to our fellow Marathon Trader, Timothy Tan, for sharing an excellent pick with all of us!

A runner up of the above story, RVBD, found a price action support at $40 (never gotten to $38 as hoped) and broke the estimated up-surf target of $10 to $12 by scoring a +$13 making a new all-time high of $53 per share. Options with strike prices of $40, $45, and $50 made somewhere in between 4 to 12 times their original value.

Didn't you wish all trades are always that easy?