Snowflake Stock Higher Despite Pre-Earnings Bear Note

Options traders lean bullish

Digital Content Manager
May 20, 2024 at 2:39 PM
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Snowflake Inc (NYSE:SNOW) stock received a price-target cut from RBC Securities to $220 from $246 ahead of its first-quarter earnings report, which is due out after the close on Wednesday, May 22. SNOW has struggled with resistance from the $170 level after a series of pullbacks knocked it off a Feb. 12, roughly two-year peak of $237.72. SNOW was last seen up 1.7% to trade at $164.66 at last check, and down 17.2% since the start of the year. 

SNOW Intraday

The shares finished five of their past eight next-day sessions lower, including an 18.1% drop in February. Snowflake stock averaged an 11.8% swing regardless of direction over the last two years, but this time around the options pits are pricing in a larger move of 15.9%.

Options traders are more bullish than usual heading into the event, per SNOW's 50-day call/put volume ratio of 2.70 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 90% of readings from the past year. Echoing this, the equity's a Schaeffer's put/call open interest ratio (SOIR) ranks in the low 6th percentile of readings from the last 12 months.


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