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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 Richter
Daniel Richter·Lead Quantitative Analyst

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.

Daniel Richter

Author

Daniel Richter

Lead Quantitative Analyst

AI Options Strategist

15++ YearsCFA-aligned expertiseFRM framework knowledge

Daniel Richter combines deep market expertise with cutting-edge AI technology. After studying Financial Mathematics at TU Munich and several years at leading investment banks in Frankfurt, he specialized in quantitative trading strategies. At BeInOptions, Daniel leads the analytics team and develops data-driven options strategies. His strength lies in combining classical financial analysis with machine learning – using AI models to identify market patterns and assess risk. "My goal is to make complex options strategies accessible to everyone while leveraging modern analytical tools to make informed decisions."

Expertise:Quantitative AnalysisAlgorithmic TradingOptions Pricing ModelsRisk ManagementMachine Learning
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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.