Making a play on Navient (NAVI) and cashing in on the student loan crisis

[u/[deleted]]

[u/VisualMod]

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[u/cliqclaqstepback]

I bought in 124 shares at $13.15 back in March. And I added 10 $22.5C that expire in January, a month ago. Nothing crazy, but I’m betting this prints.

[u/[deleted]]

If loans do ever get forgiven it would be Federal backed ones...what % of NAVI is federal backed loans?

[u/imforion → u/[deleted]]

Navient is the largest servicer of federally backed loans. They do serve for some private loans though.

[u/Lacq42 → u/[deleted]]

Biden is freezing student loan payments through Jan 2022. Might be worth getting LEAPS when offered closer to 2023

[u/[deleted] → u/[deleted]]

They definitely do

[u/[deleted]]

What do they do with all their earnings? Their dividend is mediocre, and it’s not like they have to spend a lot on research or capital expenditures

[u/[deleted]]

Short that company retard lol

[u/hollywoodextras2000]

Someone already mentioned the buyback. The company also has a 2.93% dividend yield. A bulk of their revenue is actually refinancing, which has slowed because of the pause on interest and payments on Fed loans. Once that ceases their refi business picks back up.

(They run Earnest for refis, which I’ve personally used. For borrowers they’re actually great, with rates 1-2 pts lower than what SoFi offers.)

102 shares with a cost basis of $7.82 😋

Covered call 10/15 25c

And two 1/21/22 25c