Imagine a guy who knocks on your door every single day offering to buy your house.


Monday: "I'll give you $500k!"
Tuesday: "Actually... $430k."
Wednesday: "MARKET'S CRASHING. $350k, final offer!"
Thursday: "Never mind. $520k."
Same house. Nothing changed. He's just manic.
You'd never let that lunatic decide what your house is worth...
But that's EXACTLY what people do with stocks.
The price on your screen is just Mr. Market's mood that day... not what the company is worth.
The earnings decide what it's worth. His panic prices are just offers.
& when he shows up terrified offering me a great company at a stupid discount?
That's the day I take his deal.
Buy shares. Sell portfolio secured puts, Buy LEAP calls.
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