10 Best Lead Generation for December 2025
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Market Overview & Selection Criteria
The digital services and marketplace sectors have experienced significant volatility over the past year, creating compelling opportunities for value-oriented investors. Our selection methodology focuses on companies exhibiting strong fundamental metrics despite recent market headwinds. We prioritize stocks with high free cash flow margins, solid quality ratings, and intrinsic values suggesting meaningful upside potential. These ten companies represent a diverse mix of business models—from legal services automation to home services marketplaces—all trading at valuations that may not fully reflect their underlying business quality and growth prospects.[1][2]
The featured stocks demonstrate varying degrees of market recovery, with some experiencing significant drawdowns that have created entry opportunities for contrarian investors. By analyzing revenue growth trajectories, return on invested capital, and balance sheet strength, we've identified companies positioned to benefit from secular trends in digital transformation and consumer preference shifts toward online marketplaces.[1]
Featured Stock Analysis
Stock #1: Yelp Inc. (YELP)
| Metric | Value |
|---|---|
| Market Cap | $1,859.3M |
| Quality Rating | 6.9 |
| Intrinsic Value | $62.3 |
| 1Y Return | -24.4% |
| Revenue | $1,466.9M |
| Free Cash Flow | $311.4M |
| Revenue Growth | 5.3% |
| FCF margin | 21.2% |
| Gross margin | 90.5% |
| ROIC | 28.9% |
| Total Debt to Equity | 3.7% |
Investment Thesis
Yelp operates as a dominant local search and review platform with a market cap of $1,859.3M and a Quality rating of 6.9, indicating solid fundamental strength.[1] The company generates $1,466.9M in annual revenue with an impressive 90.5% gross margin, reflecting the high-margin nature of its advertising-driven business model. Despite a challenging 1-year return of -24.4%, Yelp's intrinsic value of $62.3 suggests potential upside from current levels. The platform's $311.4M in free cash flow demonstrates robust cash generation capabilities, with a 21.2% FCF margin indicating efficient capital deployment.
Yelp's business model benefits from network effects as consumers increasingly rely on peer reviews for local business discovery. The company's minimal debt burden (3.7% debt-to-equity ratio) provides financial flexibility for strategic investments or shareholder returns. With 5.3% revenue growth and a 28.9% return on invested capital, Yelp demonstrates the ability to generate strong returns on its capital base despite mature market conditions.
Key Catalysts
- Expansion of advertising services to small and medium-sized businesses
- International market penetration opportunities
- AI-powered review analysis and business insights
- Potential strategic partnerships or acquisitions
- Recovery from post-pandemic normalization in local services demand
Risk Factors
- Competitive pressure from Google Maps and other review platforms
- Dependence on advertising spending cyclicality
- Regulatory scrutiny on review authenticity and moderation
- Sensitivity to economic downturns affecting small business advertising budgets
- Market saturation in core North American markets
Stock #2: LegalZoom.com, Inc. (LZ)
| Metric | Value |
|---|---|
| Market Cap | $1,684.0M |
| Quality Rating | 6.9 |
| Intrinsic Value | $5.7 |
| 1Y Return | 17.7% |
| Revenue | $727.5M |
| Free Cash Flow | $155.8M |
| Revenue Growth | 7.2% |
| FCF margin | 21.4% |
| Gross margin | 65.7% |
| ROIC | 7.5% |
| Total Debt to Equity | 7.3% |
Investment Thesis
LegalZoom represents a disruptive force in legal services democratization with a $1,684.0M market cap and 6.9 Quality rating. The company's $727.5M revenue base supports a 65.7% gross margin, reflecting the scalability of its digital legal services platform. Trading with an intrinsic value of $5.7, LegalZoom has delivered positive 1-year returns of 17.7%, suggesting market recognition of its value proposition. The platform generates $155.8M in free cash flow with a 21.4% FCF margin, demonstrating strong cash conversion despite competitive pressures in the legal tech space.
LegalZoom's business model addresses a massive addressable market of small businesses and individuals seeking affordable legal services. The company's 7.2% revenue growth reflects steady expansion, while its 7.5% ROIC indicates room for operational improvement and margin expansion. With only 7.3% debt-to-equity ratio, LegalZoom maintains a conservative balance sheet suitable for reinvestment in product development and market expansion.
Key Catalysts
- Expansion into international markets with localized legal services
- AI-powered document generation and legal advice capabilities
- Strategic partnerships with accounting and business services platforms
- Increased adoption among Gen Z entrepreneurs and small business owners
- Potential M&A opportunities to consolidate fragmented legal services market
Risk Factors
- Regulatory challenges regarding unauthorized practice of law
- Competition from traditional law firms and other legal tech platforms
- Customer acquisition cost pressures in competitive digital marketing environment
- Dependence on small business formation cycles
- Potential margin compression from competitive pricing pressures
Stock #3: Ziff Davis, Inc. (ZD)
| Metric | Value |
|---|---|
| Market Cap | $1,380.8M |
| Quality Rating | 5.9 |
| Intrinsic Value | $139.2 |
| 1Y Return | -44.2% |
| Revenue | $1,457.4M |
| Free Cash Flow | $261.2M |
| Revenue Growth | 5.7% |
| FCF margin | 17.9% |
| Gross margin | 61.2% |
| ROIC | 5.7% |
| Total Debt to Equity | 47.5% |
Investment Thesis
Ziff Davis operates a diversified digital media and software platform portfolio with a $1,380.8M market cap and 5.9 Quality rating. The company generates $1,457.4M in revenue with a 61.2% gross margin, supported by its mix of subscription software and advertising-driven content properties. Despite a significant 1-year return of -44.2%, Ziff Davis's intrinsic value of $139.2 suggests substantial recovery potential for patient investors. The company produces $261.2M in free cash flow with a 17.9% FCF margin, providing resources for debt reduction and strategic initiatives.
Ziff Davis's portfolio includes leading technology media brands and B2B software solutions serving enterprise customers. The 5.7% revenue growth reflects a maturing business, while the 5.7% ROIC indicates opportunities for operational efficiency improvements. However, investors should note the elevated 47.5% debt-to-equity ratio, which represents the company's most significant financial constraint and requires careful monitoring.
Key Catalysts
- Debt reduction initiatives improving financial flexibility
- Margin expansion through operational efficiency programs
- Strategic divestitures of non-core assets
- Consolidation opportunities in fragmented digital media landscape
- Recovery in enterprise software spending cycles
Risk Factors
- High leverage limiting financial flexibility and strategic options
- Cyclical exposure to advertising spending and IT budgets
- Intense competition in technology media and software markets
- Potential write-downs if acquired properties underperform
- Interest rate sensitivity given debt burden
Stock #4: EverQuote, Inc. (EVER)
| Metric | Value |
|---|---|
| Market Cap | $961.8M |
| Quality Rating | 7.0 |
| Intrinsic Value | $85.3 |
| 1Y Return | 37.5% |
| Revenue | $644.7M |
| Free Cash Flow | $87.5M |
| Revenue Growth | 57.8% |
| FCF margin | 13.6% |
| Gross margin | 96.8% |
| ROIC | 301.4% |
| Total Debt to Equity | 0.5% |
Investment Thesis
EverQuote stands out as a high-growth digital marketplace with exceptional fundamentals, boasting a $961.8M market cap and 7.0 Quality rating—the highest among our featured stocks. The company's 57.8% revenue growth significantly outpaces peers, driven by its insurance quote comparison platform connecting consumers with providers. With $644.7M in revenue and a remarkable 96.8% gross margin, EverQuote demonstrates the economics of a highly scalable digital marketplace. The 1-year return of 37.5% reflects market appreciation of its growth trajectory, while the intrinsic value of $85.3 suggests continued upside potential.
EverQuote's most impressive metric is its 301.4% return on invested capital, indicating exceptional efficiency in deploying capital to generate returns. The company generates $87.5M in free cash flow with a 13.6% FCF margin, and maintains a fortress balance sheet with only 0.5% debt-to-equity ratio. This combination of growth, profitability, and financial strength positions EverQuote as a premium quality holding within the marketplace category.
Key Catalysts
- Expansion into adjacent insurance verticals and product categories
- International marketplace expansion opportunities
- AI-powered matching algorithms improving conversion rates
- Strategic partnerships with insurance carriers and brokers
- Potential for increased monetization per quote
Risk Factors
- Regulatory scrutiny on insurance distribution and data privacy
- Dependence on insurance carrier relationships and commission structures
- Competition from direct insurance company platforms
- Sensitivity to insurance market cycles and consumer demand
- Potential margin compression from increased competition
Stock #5: QuinStreet, Inc. (QNST)
| Metric | Value |
|---|---|
| Market Cap | $803.0M |
| Quality Rating | 6.2 |
| Intrinsic Value | $9.7 |
| 1Y Return | -38.7% |
| Revenue | $1,100.3M |
| Free Cash Flow | $113.1M |
| Revenue Growth | 43.1% |
| FCF margin | 10.3% |
| Gross margin | 9.9% |
| ROIC | 4.4% |
| Total Debt to Equity | 2.8% |
Investment Thesis
QuinStreet operates a diversified online marketplace platform with a $803.0M market cap and 6.2 Quality rating. The company generates $1,100.3M in revenue with impressive 43.1% revenue growth, demonstrating strong momentum in its core lead generation and marketplace businesses. Despite a challenging 1-year return of -38.7%, QuinStreet's intrinsic value of $9.7 suggests significant recovery potential. The company produces $113.1M in free cash flow with a 10.3% FCF margin, providing resources for reinvestment and shareholder returns.
QuinStreet's business model connects consumers with service providers across insurance, mortgages, and other financial services categories. The 9.9% gross margin reflects the competitive nature of lead generation, while the 4.4% ROIC indicates opportunities for operational leverage as the company scales. With a conservative 2.8% debt-to-equity ratio, QuinStreet maintains financial flexibility to pursue strategic opportunities.
Key Catalysts
- Expansion into new vertical markets and geographic regions
- Technology improvements enhancing lead quality and conversion rates
- Strategic acquisitions of complementary marketplace platforms
- Increased monetization of existing user base
- Recovery in mortgage and financial services lead demand
Risk Factors
- Cyclical exposure to mortgage and financial services markets
- Intense competition from Google and other digital advertising platforms
- Dependence on affiliate relationships and commission structures
- Regulatory changes affecting lead generation and data privacy
- Customer acquisition cost inflation in competitive digital marketing
Stock #6: MediaAlpha, Inc. (MAX)
| Metric | Value |
|---|---|
| Market Cap | $719.6M |
| Quality Rating | 6.1 |
| Intrinsic Value | $37.1 |
| 1Y Return | 1.0% |
| Revenue | $1,123.1M |
| Free Cash Flow | $87.2M |
| Revenue Growth | 64.9% |
| FCF margin | 7.8% |
| Gross margin | 15.2% |
| ROIC | 66.1% |
| Total Debt to Equity | (33.4%) |
Investment Thesis
MediaAlpha represents an emerging leader in insurance marketplace technology with a $719.6M market cap and 6.1 Quality rating. The company demonstrates exceptional growth with 64.9% revenue growth on a $1,123.1M revenue base, positioning it among the fastest-growing companies in our portfolio. The 1-year return of 1.0% reflects market consolidation after significant volatility, while the intrinsic value of $37.1 suggests meaningful upside potential. MediaAlpha generates $87.2M in free cash flow with a 7.8% FCF margin, demonstrating improving cash generation as the platform scales.
MediaAlpha's 15.2% gross margin reflects the competitive insurance marketplace environment, while the exceptional 66.1% return on invested capital indicates highly efficient capital deployment. Notably, the company maintains a negative debt-to-equity ratio of -33.4%, indicating a net cash position that provides strategic flexibility and downside protection. This financial strength combined with high growth creates an attractive risk-reward profile.
Key Catalysts
- Expansion into new insurance verticals beyond auto and home
- International marketplace expansion opportunities
- Technology enhancements improving customer experience and conversion
- Potential strategic partnerships with major insurance carriers
- Operating leverage as platform scales
Risk Factors
- Intense competition from established insurance distribution channels
- Regulatory changes affecting insurance distribution and data handling
- Dependence on insurance carrier relationships and commission structures
- Customer acquisition cost pressures in competitive digital marketing
- Potential margin compression from competitive pricing dynamics
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Stock #7: Ibotta, Inc. (IBTA)
| Metric | Value |
|---|---|
| Market Cap | $709.7M |
| Quality Rating | 6.0 |
| Intrinsic Value | $88.5 |
| 1Y Return | -67.4% |
| Revenue | $352.2M |
| Free Cash Flow | $74.1M |
| Revenue Growth | (4.4%) |
| FCF margin | 21.0% |
| Gross margin | 81.5% |
| ROIC | 35.0% |
| Total Debt to Equity | 7.7% |
Investment Thesis
Ibotta operates a digital marketplace connecting consumers with retailers and brands through its receipt-based rewards platform, with a $709.7M market cap and 6.0 Quality rating. The company generates $352.2M in revenue with an impressive 81.5% gross margin, reflecting the high-margin nature of its digital marketplace model. However, the 1-year return of -67.4% represents a significant drawdown, while the intrinsic value of $88.5 suggests substantial recovery potential for contrarian investors. Ibotta produces $74.1M in free cash flow with a 21.0% FCF margin, demonstrating strong cash generation despite revenue headwinds.
Ibotta's business model benefits from secular trends toward digital receipts and personalized consumer offers. The negative 4.4% revenue growth reflects recent market challenges, while the 35.0% return on invested capital indicates the underlying business quality. With a conservative 7.7% debt-to-equity ratio, Ibotta maintains financial flexibility to navigate current challenges and invest in growth initiatives.
Key Catalysts
- Recovery in consumer spending and retail activity
- Expansion of brand partnerships and advertiser relationships
- International marketplace expansion opportunities
- Technology improvements enhancing user engagement and retention
- Potential strategic partnerships or acquisition interest
Risk Factors
- Sensitivity to consumer spending cycles and economic conditions
- Dependence on retailer and brand partnerships for monetization
- Competition from other loyalty and rewards platforms
- User acquisition and retention challenges
- Potential margin compression from competitive dynamics
Stock #8: Groupon, Inc. (GRPN)
| Metric | Value |
|---|---|
| Market Cap | $677.7M |
| Quality Rating | 5.6 |
| Intrinsic Value | $47.8 |
| 1Y Return | 80.3% |
| Revenue | $496.1M |
| Free Cash Flow | $34.9M |
| Revenue Growth | (0.8%) |
| FCF margin | 7.0% |
| Gross margin | 90.4% |
| ROIC | (16.2%) |
| Total Debt to Equity | (591.4%) |
Investment Thesis
Groupon operates a daily deals and local services marketplace with a $677.7M market cap and 5.6 Quality rating. The company generates $496.1M in revenue with a 90.4% gross margin, reflecting the high-margin nature of its marketplace model. The exceptional 1-year return of 80.3% reflects significant market recovery from depressed valuations, while the intrinsic value of $47.8 suggests the market may be fairly valuing the business at current levels. Groupon produces $34.9M in free cash flow with a 7.0% FCF margin, indicating improving cash generation.
Groupon's business model connects consumers with local merchants through discounted offerings and experiences. The negative 0.8% revenue growth reflects a maturing business facing structural headwinds, while the negative 16.2% return on invested capital indicates challenges in deploying capital efficiently. The concerning negative 591.4% debt-to-equity ratio reflects significant balance sheet stress and requires careful monitoring.
Key Catalysts
- Stabilization of revenue trends through improved merchant relationships
- Margin expansion through operational efficiency initiatives
- International market recovery and growth
- Technology improvements enhancing user experience
- Potential strategic partnerships or acquisition interest
Risk Factors
- Severe balance sheet stress limiting financial flexibility
- Negative return on invested capital indicating capital inefficiency
- Structural headwinds in daily deals marketplace category
- Intense competition from other local services platforms
- Sensitivity to consumer spending and discretionary spending cycles
Stock #9: Angi Inc. (ANGI)
| Metric | Value |
|---|---|
| Market Cap | $508.3M |
| Quality Rating | 6.4 |
| Intrinsic Value | $76.8 |
| 1Y Return | 529.0% |
| Revenue | $1,057.6M |
| Free Cash Flow | $61.2M |
| Revenue Growth | (13.1%) |
| FCF margin | 5.8% |
| Gross margin | 93.7% |
| ROIC | 4.9% |
| Total Debt to Equity | 50.0% |
Investment Thesis
Angi operates a home services marketplace connecting consumers with service professionals, with a $508.3M market cap and 6.4 Quality rating. The company generates $1,057.6M in revenue with a 93.7% gross margin, reflecting the high-margin nature of its digital marketplace model. The extraordinary 1-year return of 529.0% reflects significant recovery from depressed valuations, while the intrinsic value of $76.8 suggests potential continued appreciation. Angi produces $61.2M in free cash flow with a 5.8% FCF margin, indicating improving cash generation.
Angi's business model benefits from secular trends toward digital discovery and booking of home services. However, the negative 13.1% revenue growth reflects recent market challenges and competitive pressures, while the 4.9% return on invested capital indicates room for operational improvement. The elevated 50.0% debt-to-equity ratio represents a constraint on financial flexibility and requires monitoring.
Key Catalysts
- Recovery in home services demand as consumer spending normalizes
- Expansion of service categories and geographic markets
- Technology improvements enhancing user experience and conversion
- Margin expansion through operational efficiency initiatives
- Potential strategic partnerships or acquisition interest
Risk Factors
- Negative revenue growth indicating market share or demand challenges
- Elevated leverage limiting financial flexibility
- Intense competition from other home services platforms
- Sensitivity to consumer spending and discretionary spending cycles
- Regulatory challenges in contractor classification and liability
Stock #10: Cheche Group Inc. (CCG)
| Metric | Value |
|---|---|
| Market Cap | $78.5M |
| Quality Rating | 4.5 |
| Intrinsic Value | $13.3 |
| 1Y Return | 13.7% |
| Revenue | CN¥3,182.8M |
| Free Cash Flow | (CN¥8,685.0K) |
| Revenue Growth | (4.4%) |
| FCF margin | (0.3%) |
| Gross margin | 5.0% |
| ROIC | (10.0%) |
| Total Debt to Equity | 38.9% |
Investment Thesis
Cheche Group operates in the Chinese market with a $78.5M market cap and 4.5 Quality rating, the lowest among our featured stocks. The company generates CN¥3,182.8M in revenue with a 5.0% gross margin, reflecting the competitive nature of its business model. The 1-year return of 13.7% suggests modest market recovery, while the intrinsic value of $13.3 indicates potential upside. However, Cheche Group presents the most challenging risk profile in our portfolio, with negative free cash flow of CN¥8,685.0K and a negative 0.3% FCF margin.
Cheche Group's business model operates in the Chinese market with exposure to regulatory and currency risks. The negative 4.4% revenue growth combined with negative return on invested capital of -10.0% indicates fundamental business challenges. The 38.9% debt-to-equity ratio adds financial stress to an already challenging operational situation.
Key Catalysts
- Operational turnaround initiatives improving profitability
- Market recovery in core Chinese business segments
- Strategic partnerships or acquisition interest
- Cost reduction programs improving margins
- Potential restructuring or strategic alternatives
Risk Factors
- Negative free cash flow indicating cash burn
- Negative return on invested capital indicating value destruction
- Exposure to Chinese regulatory environment and currency risks
- Competitive pressures in core business segments
- Elevated leverage limiting financial flexibility
- Lowest quality rating among featured stocks
Portfolio Diversification Insights
This portfolio of ten stocks provides meaningful diversification across the digital services and marketplace ecosystem. The collection spans multiple verticals including legal services (LegalZoom), local search (Yelp), insurance distribution (EverQuote, MediaAlpha, QuinStreet), home services (Angi), consumer rewards (Ibotta), daily deals (Groupon), digital media (Ziff Davis), and international exposure (Cheche Group).[1][2]
Sector Allocation & Risk Distribution:
The portfolio demonstrates balanced exposure across different marketplace categories, reducing concentration risk in any single vertical. Insurance-focused companies (EverQuote, MediaAlpha, QuinStreet) represent approximately 30% of the portfolio by market cap, while consumer-facing marketplaces (Yelp, Ibotta, Groupon, Angi) comprise another 40%. Professional services platforms (LegalZoom) and media/software (Ziff Davis) provide additional diversification.
Quality Rating Distribution:
The portfolio includes a mix of quality profiles, with EverQuote leading at 7.0 and Cheche Group at the lower end at 4.5. This distribution allows investors to balance exposure to higher-quality, slower-growth businesses with higher-growth, lower-quality opportunities. The median quality rating of 6.2 suggests a portfolio of fundamentally sound businesses with room for operational improvement.
Growth vs. Value Characteristics:
The portfolio balances high-growth opportunities (EverQuote at 57.8% revenue growth, MediaAlpha at 64.9%) with more mature, cash-generative businesses (Yelp at 5.3% growth, Ziff Davis at 5.7% growth). This mix provides both growth exposure and income generation through free cash flow.
Market Timing & Entry Strategies
Valuation-Based Entry Points:
The intrinsic value calculations provided by ValueSense suggest meaningful upside potential across the portfolio. Investors should consider dollar-cost averaging into positions rather than deploying capital all at once, particularly given the volatility evident in recent 1-year returns. EverQuote and MediaAlpha, trading closer to intrinsic value, may warrant more immediate consideration, while Ziff Davis and Ibotta, with larger gaps between current and intrinsic values, may benefit from patient accumulation strategies.[1]
Sector Rotation Considerations:
Insurance marketplace companies (EverQuote, MediaAlpha, QuinStreet) may benefit from economic normalization and increased consumer engagement with financial services. Home services (Angi) and consumer rewards (Ibotta) platforms are sensitive to consumer spending cycles and may present better entry points during economic slowdowns. Legal services (LegalZoom) and local search (Yelp) offer more defensive characteristics with steady, predictable growth.
Technical and Fundamental Confluence:
Investors should monitor free cash flow generation and balance sheet metrics alongside valuation multiples. Companies with improving FCF margins and debt reduction trajectories may present better risk-adjusted entry points. The ValueSense platform's backtesting capabilities can help investors identify optimal entry points based on historical price patterns and fundamental inflection points.
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
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FAQ Section
Q1: How were these stocks selected?
These ten stocks were selected based on ValueSense's fundamental analysis methodology, focusing on companies with strong free cash flow generation, reasonable valuations relative to intrinsic value, and quality ratings indicating solid business fundamentals. The selection prioritizes digital marketplace and services companies with secular growth tailwinds, though quality and valuation metrics were weighted equally to ensure balanced portfolio construction.[1][2]
Q2: What's the best stock from this list?
EverQuote (EVER) stands out as the highest-quality holding with a 7.0 quality rating, exceptional 57.8% revenue growth, and a remarkable 301.4% return on invested capital. The company combines growth, profitability, and financial strength, making it suitable for growth-oriented investors. However, "best" depends on individual investment objectives—LegalZoom offers more defensive characteristics, while MediaAlpha provides high growth with a net cash balance sheet.[1]
Q3: Should I buy all these stocks or diversify?
A diversified approach is recommended rather than concentrating in a single position. The portfolio's mix of growth (EverQuote, MediaAlpha) and value (Ziff Davis, Ibotta) opportunities, combined with different marketplace verticals, provides meaningful diversification. Consider starting with higher-quality positions (EverQuote, LegalZoom) before adding more speculative holdings (Cheche Group, Groupon). Dollar-cost averaging into positions reduces timing risk.[1][2]
Q4: What are the biggest risks with these picks?
The primary risks include regulatory changes affecting marketplace operations, competitive pressures from larger platforms (particularly Google), and sensitivity to economic cycles affecting consumer and business spending. Specific concerns include Ziff Davis's elevated leverage (47.5% debt-to-equity), Groupon's negative return on invested capital, and Cheche Group's negative free cash flow. Investors should monitor balance sheet metrics and competitive dynamics closely.[1]
Q5: When is the best time to invest in these stocks?
ValueSense's backtesting tools can help identify optimal entry points based on historical patterns and fundamental inflection points. Generally, consumer-facing marketplaces (Ibotta, Angi, Groupon) may present better entry opportunities during economic slowdowns when valuations compress. Insurance and professional services platforms (EverQuote, LegalZoom, MediaAlpha) offer more consistent entry opportunities given their defensive characteristics. Consider using limit orders to accumulate positions at intrinsic value levels.[1][2]