Snowflake Sees Unusual Options Activity as Traders Eye $260 Call Strike Amid Depressed Share Price
By TrendSpider Editor
Snowflake Inc. (SNOW) is drawing attention in the options market Tuesday, with two notable contracts generating a combined $1,812,400 in total premium as the stock trades at $143.38, down 0.56% on the session. The more striking of the two is a bullish call sweep targeting a $260 strike expiring in M
Snowflake Sees Unusual Options Activity as Traders Eye $260 Call Strike Amid Depressed Share Price
Snowflake Inc. (SNOW) is drawing attention in the options market Tuesday, with two notable contracts generating a combined $1,812,400 in total premium as the stock trades at $143.38, down 0.56% on the session. The more striking of the two is a bullish call sweep targeting a $260 strike expiring in March 2027, suggesting at least some traders are betting on a significant recovery from current levels. With SNOW sitting much closer to its 52-week low of $118.30 than its 52-week high of $280.67, the options activity raises questions about whether the worst may be priced in.
Key Drivers of the SNOW Stock Move
- Main Catalyst: Two unusual options contracts hit the tape today totaling $1,812,400 in combined premium. A 1,000-contract call position at the $260 strike expiring March 19, 2027 brought in $865,000 in premium, while a 500-contract put position at the $150 strike expiring June 18, 2026 generated $947,400. The call contract's open interest came in at a staggering 1,613% of normal levels, signaling highly unusual positioning.
- Bull Case: The $260 call, placed well out of the money, carries an open interest reading of 1,613%, indicating this is far outside typical activity for that strike. A trader committing $865,000 to a long-dated call expiring in March 2027 is implying a potential move of more than 81% above the current price of $143.38, and they have nearly a full year to be right.
- Bear Case: The $150 put expiring June 18, 2026 is currently in the money relative to SNOW's $143.38 share price, and attracted $947,400 in premium on 500 contracts. With an open interest reading of 21%, this is a more conventional sized position, but the fact that it sits in the money suggests at least one trader is protecting against further near-term downside, or actively betting on it.
The competing signals here reflect the broader uncertainty hanging over Snowflake heading into the summer. The stock has been cut roughly in half from its 52-week high of $280.67 and has spent much of the past several months grinding near the lower end of its annual range. The long-dated call at $260 could represent a speculative bet on a full recovery scenario, perhaps tied to expectations around artificial intelligence-driven data cloud demand. Meanwhile, the in-the-money put at $150 speaks to ongoing caution about the near-term setup heading into June. Traders appear divided on direction, but the asymmetric size and open interest on the call side give the bullish thesis an edge in terms of headline impact.
SNOW Unusual Options Activity
- Contract 1: Put | Strike: $150 | Expiry: June 18, 2026 | Volume: 500 contracts | Open Interest: 21% of normal | Status: In the Money | Premium: $947,400
- Contract 2: Call | Strike: $260 | Expiry: March 19, 2027 | Volume: 1,000 contracts | Open Interest: 1,613% of normal | Status: Out of the Money | Premium: $865,000
SNOW Seasonality
Late April and early May have historically represented a transitional period for cloud software names as the market digests first-quarter earnings results and resets expectations heading into the summer. With SNOW reporting results typically in this window, options positioning in late April can often reflect traders taking directional stances ahead of near-term catalysts.
SNOW Relative Performance
SNOW is down 0.56% on Tuesday and remains deep in the lower half of its 52-week range of $118.30 to $280.67, currently trading at $143.38. The stock's proximity to its annual lows suggests it has significantly underperformed broader technology benchmarks over the past year, which may be one reason the long-dated call at $260 carries such outsized open interest, as contrarian traders look for a potential mean reversion trade in a name that has been heavily discounted from its highs.