A Closer Look at Snowflake's Options Market Dynamics

Investors with a lot of money to spend have taken a bearish stance on Snowflake SNOW.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with SNOW, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 45 uncommon options trades for Snowflake.

This isn't normal.

The overall sentiment of these big-money traders is split between 28% bullish and 71%, bearish.

Out of all of the special options we uncovered, 9 are puts, for a total amount of $538,195, and 36 are calls, for a total amount of $1,962,784.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $120.0 and $270.0 for Snowflake, spanning the last three months.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Snowflake's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Snowflake's significant trades, within a strike price range of $120.0 to $270.0, over the past month.

Snowflake Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

About Snowflake

Founded in 2012, Snowflake is a data lake, warehousing, and sharing company that came public in 2020. To date, the company has over 3,000 customers, including nearly 30% of the Fortune 500 as its customers. Snowflake's data lake stores unstructured and semistructured data that can then be used in analytics to create insights stored in its data warehouse. Snowflake's data sharing capability allows enterprises to easily buy and ingest data almost instantaneously compared with a traditionally months-long process. Overall, the company is known for the fact that all of its data solutions that can be hosted on various public clouds.

After a thorough review of the options trading surrounding Snowflake, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Snowflake's Current Market Status

• Trading volume stands at 2,662,370, with SNOW's price down by 0.0%, positioned at $229.33.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 2 days.

What Analysts Are Saying About Snowflake

5 market experts have recently issued ratings for this stock, with a consensus target price of $235.4.

• Consistent in their evaluation, an analyst from Truist Securities keeps a Buy rating on Snowflake with a target price of $250.
• An analyst from HSBC downgraded its action to Hold with a price target of $214.
• Consistent in their evaluation, an analyst from Needham keeps a Buy rating on Snowflake with a target price of $265.
• Consistent in their evaluation, an analyst from Raymond James keeps a Outperform rating on Snowflake with a target price of $223.
• Maintaining their stance, an analyst from UBS continues to hold a Neutral rating for Snowflake, targeting a price of $225.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Snowflake options trades with real-time alerts from Benzinga Pro.