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marketsMay 29, 20262 min read

Snowflake Explodes 37% on Q1 Beat: $6B AWS Deal Changes Everything

In 4 hours after market close, institutions bought 156,890 Snowflake call contracts — the second-largest single-day call volume in SNOW history.

Daniel Berg
Daniel Berg·Editor-in-Chief

The Wednesday Night Shock

At 10:01 PM Berlin time, Snowflake released numbers nobody saw coming. Product revenue $1.33 billion, +34% year over year — analysts expected $1.32B. EPS $0.39 vs $0.32 expected. Then the bomb: A $6 billion multi-year AWS deal cementing Snowflake's position in Enterprise AI distribution. And the acquisition of Natoma, an AI agent platform. The stock rocketed from $174 to $238 in four hours — a 37% surge.

What the Options Side Shows

By 2:00 AM, 156,890 call contracts traded. The hottest strike: $225 expiring May 29 — 2,900 contracts, even though stock was at $174. Call/Put ratio spiked to 5.85:1. This wasn't retail FOMO. This was institutions positioning before the earnings call or loading immediately after release. Anyone who bought the $225 call for $1.20 on May 27 collected +840% the next morning.

What Traders Watch Now

Snowflake trades at $238, 10% below all-time high of $265. Next resistance zone: $250. If stock closes above $250, path opens to $280. For conservative traders: Bull call spread 240/260 June expiry at IV 52% — limited risk, clean setup. For aggressive traders: Direct $250 call July at $12.50 — if AWS integration accelerates in Q2, that's a 3x.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.

Sources

BeInOptions Research

Frequently Asked Questions

Why did Snowflake surge 37% after earnings?

Snowflake reported Q1 product revenue of $1.33B (+34% YoY) beating all expectations. Additionally, they announced a $6B AWS partnership and Natoma acquisition — both signal massive Enterprise AI expansion.

What does the AWS deal mean exactly?

The $6 billion multi-year deal gives Snowflake direct access to AWS enterprise customers and AI infrastructure. This reduces Databricks competition and strengthens Snowflake's position as cross-cloud data platform.

Which strike is the best entry now?

At $238 stock price, the 240/260 bull call spread June expiry is the cleanest setup: limited risk, IV 52%, clear target at $250. If stock closes above $250, spread becomes profitable.

Key Options Terms

A quick refresher on the terms that keep coming up in options stories like this one.

Implied Volatility (IV)
The volatility the market expects. Rising IV makes options more expensive; falling IV makes them cheaper. IV guide →
The Greeks
Delta, Gamma, Theta and Vega measure how an option reacts to price, time and volatility. Greeks explained →
Open Interest
The number of open contracts. Heavy open interest at a strike flags an important price level. Read the chain →
Premium
The price of an option. Sellers collect it; buyers pay it for the right to trade. Basics →
Exercise & Assignment
What happens at expiration when an in-the-money option is actually settled. Learn more →
Defined Risk
Strategies such as spreads where the maximum loss is known from the outset. Strategies →

Options & the News – Quick Answers

How do stories like this move option prices?

News mostly works through expected movement: when uncertainty rises, so does implied volatility and therefore premium – often regardless of direction.

Do I have to bet on direction to benefit?

No. Defined-risk strategies such as the iron condor or a covered call trade volatility and time value rather than an exact direction.

I am a beginner – where should I start?

Start with our beginners guide and the glossary before putting real capital to work.

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Daniel Berg

Author

Daniel Berg

Editor-in-Chief

Options Educator

20++ Years

Daniel Berg is an ordinary guy from a mid-sized German city. He spent over twenty years in sales at a mid-cap machinery company – finance was never his profession, it was his expensive lesson. In 2000 he put his first savings into Deutsche Telekom's "people's share", buying near €100 and watching it fall to €8. He burned more money on the Neuer Markt afterwards. Only in his mid-thirties did he start the boring, patient way – broad ETFs, patience, no hot tips. At BeInOptions, Daniel passes on exactly that lesson: no miracle returns, just plain-spoken education about options, risk and long-term investing. "I don't sell dreams. I explain the tools – and the mistakes I made myself."

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.