Student lender Navient cancels $1.7B in student loans

Ticker: NAVI
Description of why you are requesting DD: Possible Put Play? Maybe Calls?
While I assume the fair majority of the 1.7B was already wrote off and used for tax purposes is there an opportunity here to make some monies from puts?

On the flip side does the new news attention and no threat of legal fee’s mass payouts make it run?

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It seems to be on a pretty strong uptrend and seemed to have little reaction to the news today. I’d be hesitant to open a bearish position.

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Thanks for the quick reply - I will keep an eye on it maybe some longer calls since you pointed out the uptrend

Surely a news like that would make NAVI plummet? How likely is it that people simply haven’t caught onto the news? The cancellation article came up only 3-4 hours ago.

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Not necessarily. The lawsuit could have been worse. Now they are just writing off $1.7B (and the people getting their loans written off probably owe all that in taxes).

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Kinda surprising. This doesn’t look good for them in terms of reputation, and they also owe $142.5 million in penalties (maybe that’s not a meaningful amount to them?).

It seems like the first article came out 8h ago according to webull, and there was a straight drop from 22.5 to 22 around that time. I’ll watch how things go tmrw morning to see if it’s worth buying some puts.

I grabbed a handful of puts - not sure of the current drop is just more indicative of the market though

Anyone playing NAVI earnings?

Congrats to those who did end up playing puts on this, it fell from 23 to 16 since the thread started.

Can it be deduced from this play that some types of tickers have investors that aren’t quick to react to news? For example, you can say for sure that people who play SPY and TSLA are gonna be constantly be checking the news and be reacting to them. Or was this gradual decline as a result of something other than this particular news