Infinite Banking Concept (Nassau Financial Group) (Update 21)

howevercareful

Oct 31

Shares of Lumen Technologies, Inc. (LUMN) closed yesterday at $1.49, down $.27 from the July 31's close of $1.76. Last quarter, was to repurchase those shares that E*Trade liqidated to cover margin requirements. Then, taking advantage of the Implied Volatility as earnings approaches, the plan for August 1 was to Sell To Open 32 October 20 $2.00 calls, then $.21 x $.22. Dividends are a way of getting paid to wait. Selling To Open call options is another income generating technique. This lowered the cost basis to $1.58 for 3,200 shares. The transactions:

5,211 LUMN shares Bought To Open @ $1.9395 equals $10,106.73

32 October 20 $2.00 calls Sold To Open @ $.36 less $5.25 charge equals $1,146.75

LUMN closed at $1.39 on October 20 and 32 October 20 $2.00 calls expired worthless. LUMN is expected to announce quarterly earnings after today's close. Depending on the announcement, prices could have big swings the next day. Buyers of options are more likely to pay more for an opportunity to cash in on a big payday if the stock price moves in their favor. On the other hand, sellers of options want to collect more to take some of the sting out if the stock price moves against them. The plan is to Sell To Open 32 January 19 $2.00 calls, currently $.09 x $.10, near the end of the day.

Current Positions:

6,146.935 LUMN shares, currently $1.47 x $1.48 after Extended Hours trading.

$4,500.00 was transferred in on October 14, 2022 in response to the Margin Call. It was secured from Bank of America's Platinum Plus Mastercard at 0% and a 3% ($135.00) transaction fee through April 7, 2024. The balance due is $4,635.00.

Minimum payment of $46.00 due December 4

Minimum payment of $45.00 due on January 4

Minimum payment of $45.00 due on February 4

On February 28, $2,002.28 was transferred in from US Bank.

On April 26, $7,500.00 was transferred in from US Bank.

On May 1, $20,004.30 was transferred in from US Bank.

Account Value: $24,801.87.

$440.00 loan repayment transferred on on October 2.

$440.00 loan repayment transferred on on September 1.

$440.00 loan repayment transferred on on August 1.

$440.00 loan repayment was transferred out on July 5.

$440.00 loan repayment was transferred out on June 1.

$440.00 loan repayment was transferred out on May 1.

$440.00 loan repayment was transferred out on April 3.

$440.00 loan repayment was transferred out on March 6.

$440.00 loan repayment was transferred out on February 1.

$440.00 loan repayment was transferred out on January 3.

$440.00 loan repayment transferred out on December 1.

$440.00 loan repayment transferred out on November 1.

$440.00 loan repayment transferred out on October 3.

$440.00 loan repayment transferred out on September 1.

$440.00 loan repayment transferred out on August 1.

$440.00 loan repayment transferred out on July 1.

$440.00 loan repayment transferred out on June 1.

$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.

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Shares of Lumen Technologies, Inc. (LUMN) closed today at $5.04, up $.01 from January 19's close of $5.03. On October 7, there was a Margin Call and 1,378 shares of LUMN were liquidated at $6.685 generating $9,186.53. There was a $25.00 Margin Liquidation fee. The plan is to Buy To Open those shares at a lower price. At today's closing price of $5.04, it would only cost $6,945.12 to buy back the shares, a savings of $2,241.41. On the other hand, for $9,186.53, 1,822 shares could be bought. These additional 444 shares could be used to form Covered Calls. In order to buy 56 additional shares, LUMN would need to drop another $.14 to $4.89.

LUMN was expected to announce quarterly earnings after February 7's close. A limit order was placed to Buy To Open 1,822 shares at $5.04 before the close. It would have been nice to have 500 total additional shares to be used to form Covered Calls. The risk of waiting until LUMN drops to $4.89 is that there may be an impactful bullish report. If all or part of the $.25 quarterly dividend is reinstated, there would probably be a gap up at the open on Wednesday. Looking at Yahoo Finance, LUMN's trailing 12 month earnings per share is $2.00, more than enough to pay dividends. If not, the Price Earnings Ratio, currently 2.52, is relatively low. If one were to invest in a business that cost $5.04 and earns $2.00/year, it would take 2.52 years to break even. Compare LUMN's PE Ratio with SPDR S&P 500 ETF Trust (SPY)'s PE Ratio of 22.24. Dividends are a way of getting paid to wait. Selling To Open call options is another income generating technique. The transaction:

1,822 LUMN shares Bought To Open @ $5.04 equals $9,182.88.

$4,500.00 was transferred in on October 14 in response to the Margin Call. It was secured from Bank of America's Platinum Plus Mastercard at 0% and a 3% ($135.00) transaction fee through April 7, 2024. The balance due is $4,635.00.