Infinite Banking Concept (Nassau Financial Group) (Update 14)

howevercareful

May 6

Shares of Lumen Technologies, Inc. (LUMN) closed yesterday at $10.74, up $.33 from Tuesday's close of $10.41. The plan for Tuesday was to establish a Diagonal Put Spread with 10 May 20 $8.00 puts, currently $.00 x $.01, by Selling To Open May 6 $10.00 puts, currently $.01 x $.04. Because 10 contracts represent 1,000 shares and there is $2.00 between the Strike Prices, $2,000.00 was placed on hold. The transaction:

10 May 6 $10.00 puts Sold To Open @ $.33 less $1.63 commission equals $328.37.

At the end of today, 10 May 6 $10.00 puts will expire. If $10.00 < LUMN, they will be allowed to expire worthless, leaving 10 May 20 $10.00 puts unpaired with unlimited potential if LUMN plummets over the weekend. On the bullish side, looking back at Infinite Banking Concept (Nassau Financial Group) (Update 12) (https://wordpress.com/post/howevercareful.wordpress.com/3903), 300 shares of LUMN and 700 shares of LUMN were Assigned and Bought To Open at $12.50 on April 22 and April 25 respectively at $12.50. $12.50 puts were so far In The Money that there wasn't much Time Value to capture. Selling a put that is way deep In The Money is similar to buying shares. Owning the shares pay a dividend and selling puts does not. Owning shares also allows one to get paid to wait by selling $12.50 calls. It was decided to leave 10 May 20 $8.00 puts unpaired and later pair them if LUMN went down, driving put values up, or take advantage of any Implied Volatility increase which also drives option values up.

Current Positions:

2,041.09116 LUMN shares, currently $10.74 x $10.75.

10 May 20 $8.00/May 6 $10.00 Diagonal Put Spread, currently $.18 x $.22.

500 LUMN shares/5 January 20 $15.00 calls Covered Call, currently $10.45 x $10.53.

100 LUMN shares/1 January 20 $12.00 call Covered Call, currently $10.15 x $1024.

200 LUMN shares/2 January 20 $10.00 call Covered Call, currently $9.11 x $9.26.

Account Value: $17,277.45.

$440.00 loan repayment transferred out on May 2.

$440.00 loan repayment transferred out on April 1.

$440.00 loan repayment transferred out on March 1.

$440.00 loan repayment transferred out on February 1.