Can ChatGPT Help You Make Money in the Stock Market? Yes, Here's How

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AI has transformed industries, but can it help you generate income from the stock market? According to expert investor Mark Yegge, the answer is yes—especially if you trade covered calls. In this blog post, we'll explore how Mark uses ChatGPT to:

  • Find high-quality growth stocks
  • Optimize covered call trades
  • Analyze ROI on extrinsic value (aka "juice")

Let’s break down the exact prompts, logic, and examples used to make smarter, faster, and more profitable stock market decisions.

Step 1: Teach ChatGPT Your Strategy

ChatGPT improves with use, especially when you train it on your investing style. For Mark, that means:

  • Identifying institutional-grade growth stocks
  • Looking for uptrends
  • Prioritizing strong revenue, ROE, and volume
  • Selling in-the-money covered calls

Mark uses the following prompt:

"You are an options expert. Find high-quality growth stocks that fit my cash flow machine criteria in short-term uptrends with good quality products and strong long-term outlooks."

Because ChatGPT "remembers" his preferences, the output is increasingly relevant.

Step 2: Focus on the Juice (Extrinsic Value)

Most covered call traders focus on total premium. Mark is different—he wants only the "juice," or extrinsic value:

  • Intrinsic Value = in-the-money portion
  • Extrinsic Value = time premium (juice)

"We’re in it for the juice," Mark says. "Just like renting out a house, you care about monthly rent, not Zillow price swings."

By solving for extrinsic value, he targets 1-2% weekly ROI regardless of whether the stock goes up or down.

Step 3: Evaluate Suggested Stocks

ChatGPT returns a list of stocks like Nvidia, Tesla, Meta, Uber, Broadcom, and Palantir. Each stock includes:

  • Current price & projected growth
  • Earnings per share trends
  • Return on equity
  • Volume & volatility (important for options)

Tesla Example:

  • Growth: 16% (lower than ideal)
  • ROE: 28%
  • Daily Volume: 3M+
  • Trend: Short-term uptrend
  • Juice potential: ~2% per week

Step 4: ROI Table for Calls

ChatGPT returns detailed tables comparing:

Stock

Strike

Premium

Intrinsic

Juice (Extrinsic)

ROI (%)

Tesla

350

$10

$2.68

$7.32

2.12%

Meta

480

$9

$3.00

$6.00

2.14%

Palantir

125

$4.50

$2.00

$2.50

1.46%

These numbers give a snapshot of each stock’s income-generating potential.

Step 5: Chart Analysis and Gaps

Mark adds chart analysis to enhance probability:

  • Weekly charts for trend clarity
  • Gap analysis to identify likely pullbacks

"Gaps are like magnets. Tesla may fill a gap around $307 before going higher. That influences my strike choice."

He prefers in-the-money calls to protect against drawdowns and still collect juice.

Life-Improving Tips for Covered Call Traders Using AI

  1. Train ChatGPT with your criteria over time
  2. Always solve for juice, not total premium
  3. Use in-the-money calls for downside protection
  4. Focus on growth stocks with high ROE and volume
  5. Use weekly and daily charts to time trades
  6. Don’t trust analysts—verify everything
  7. Use AI to generate a shortlist, not the final decision
  8. Calculate ROI only on extrinsic value
  9. Watch for gaps that can change probabilities
  10. Aim for consistency, not perfection

Frequently Asked Questions (FAQs)

Q1: Can ChatGPT actually pick stocks?

Not exactly. It provides suggestions based on your criteria, but human analysis is still required for the final decision.

Q2: Why focus on extrinsic value (juice)?

Because it’s the portion of the premium you keep. Intrinsic value must be returned if the option expires in the money.

Q3: Is 1-2% per week really sustainable?

Yes, if you're consistent and manage risk. That’s 50-100% annually from income alone.

Q4: Should I trust ChatGPT blindly?

No. It’s a tool, not a guru. Always verify fundamentals and option chains manually.

Call to Action

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Conclusion

AI is not here to replace you—it’s here to enhance you. When paired with a disciplined strategy like covered calls, ChatGPT becomes a powerful tool in your trading arsenal.

Start with one stock. One trade. One week. Let ChatGPT give you an edge—but let your experience and logic seal the deal.