Snap Inc covered put trade

Sold the April 28, 2017 20 put for 0.80 and bought it for $0.30 about a week later. Significant risk with the underlying stock. Snap Inc develops the Snap Chat App. It's projected to have $1 billion dollars in revenue this year. However, it is expected to report losses this quarter. Also, their product is built on top of the cloud services of of other companies. They will have to pay Google $2 billion dollars over the next five years and Amazon $1 billion over four years. So this year, they will generate $1 billion in revenue, then pay $450 million in cloud services before basic business expenses such as personnel. Put premiums are high.

Berkshire Class B Covered Call Trade

Sold BRK/B April 7 2016 puts at $1 then bought them back at 0.20 from 3/27 to 4/04. 80% return in a few days.

Berkshire is a conglomerate of multiple companies that has outperformed the Standard and Poor's 500 over the past 40 years. It's driven mostly by it's insurance companies.

Warren Buffet's annual letter to Berskshire Hathaway stock owners is a good read this year and every year.

The other option is to trade SPY options.

US Budget and Debt

NASA receives $18 billion per year.
The Defense Department receives $540 billion.
https://www.cbo.gov/publication/52450

Federal debt held by the public is at 77% of GDP, the highest since after World War II.
https://www.cbo.gov/publication/52480

The US federal deficit for 2016 was $587 billion.
https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/52142-breakout-chapter1.pdf