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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: Mark19   😊 😞
Number: of 6243 
Subject: book recommendation
Date: 07/09/25 2:58 PM
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No. of Recommendations: 3
I have discovered a new investment strategy that I've been using for the past six months, and it has proven to be very effective. This approach is grounded in two key concepts. First, it's essential to learn how to determine the intrinsic value of a stock. Once you grasp what a stock should be worth, you can then select the appropriate strike price when selling puts and calls.

In my experience, I have executed approximately 80 trades, with each one yielding a profit. However, I do have an unrealized loss on one trade. Essentially, I sold a put option, but when the stock plummeted, $40 was deducted from my account, and I ended up with a stock valued at only $30. Fortunately, I understand the intrinsic value of this stock, which enables me to sell call options while I wait for its price to recover to its intrinsic value. If the stock were to drop so drastically that no call options were available for me to sell, I could simply hold on until it returns to its intrinsic value.

The concepts behind this strategy are thoroughly detailed in the book "Wealthy and Wise" by David Chenier.
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This community has written 6,224 posts about Mechanical Investing. The article-length ones it recommended most:
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OT - Div yields and returns · 32 recs · 2024
Using AI to generate backtesting programs · 30 recs · 2025
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