Snowflake Stock Attracts Pre-Earnings Fanfare

Long- and short-term options traders lean bullish

Digital Content Manager
Feb 26, 2024 at 2:27 PM
facebook X logo linkedin

Cloud stock Snowflake Inc (NYSE:SNOW) is attracting bull notes ahead of the company's fourth-quarter earnings report, due out after the close on Wednesday, Feb. 28. Both Jefferies and D.A. Davidson hiked their price targets to $265 and $260 from $230 and $220, respectively. At last check, SNOW is up 1% at $231.58.

The shares are a chip shot from its Feb. 12, 52-week high of $237.71, with support from the 30-day moving average containing last week's pullback. Snowflake stock sports a 16.5% lead for 2024, and have added more than 55% over the past 12 months. 

SNOW 30Day 2 

However, SNOW doesn't usually perform well after reporting quarterly results. The stock has finished five of the past eight next-day sessions lower -- including a 16.5% dip in May -- though the most recent report in November yielded a 7% gain. The shares average a move of 11.5% in the past two years, regardless of direction, but the options pits are pricing in a larger-than-usual swing of 15.7% this time. 

Call traders are betting bullishly. The security's 50-day call/put volume ratio of 2.80 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 97% of readings from the past year. This means options traders have been much more bullish than usual.

Echoing this, SNOW's Schaeffer's put/call open interest ratio (SOIR) of 0.62 stands higher than only 1% of annual reading. In other words, short-term traders also lean bullish toward the stock.

premium-selling strategy could be the move ahead or after the event. SNOW's Schaeffer's Volatility Scorecard (SVS), checks in at a 1 (out of 100.) In other words, the security has consistently realized lower volatility than its options have priced in 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI