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.