Click to View this Strategy in SNOW Option Chain Profit Calculator
Large $3.3 Million SNOW Call Spread Trade Targets Major Upside by September 2025
On May 21, 2025, options traders executed a substantial call spread on Snowflake (SNOW), signaling significant interest in the stock’s future trajectory. The trade’s size, structure, and potential reward warrant a closer look—especially as the spread was bought for $22.47 and quickly marked a gain of 0.13 points, or about 0.6%, thanks to a slight bump in SNOW shares from $183.26 to $183.50.
Key Details of the SNOW Call Spread Trade
| Expiration Date | 19-Sep-25 |
|---|---|
| Strike Prices | 175 - 250 (Call Spread) |
| Number of Contracts | 2,966 |
| Days to Expiration | 121 |
| VWAP Trade Price | 22.47 |
| VWAP Bid / Ask Price | 22.23 / 22.82 |
| Stock Reference Price | 183.26 |
For deeper analysis on SNOW multi-leg options trades, click here to visit the trade analyzer.
Potential Profit and Risk: Big Bet, Even Bigger Potential Reward
The buyers of this spread committed over $3.3 million for a chance to turn it into approximately $7.8 million, but only if SNOW closes above $250 by expiration on September 19, 2025. This kind of setup suggests a bullish directional bet, but with a controlled risk profile since losses are capped by the defined spread.
Technical Indicators Are Bullish—SNOW Outpaces Market Over Short Term
SNOW has been displaying strong technical momentum. The current price is $183.50, reflecting a 0.34% uptick on the day and a 1.5% climb from the open, despite opening 1.1% below the previous close. More telling: the price is 7.8% above its 20-day moving average, 16.6% over the 50-day, and an impressive 26.4% higher than its 250-day average—a classic technical uptrend.
| Metric | SNOW Value |
|---|---|
| Current Price | 183.50 |
| 20D MA | 170.26 (+7.8%) |
| 50D MA | 157.44 (+16.6%) |
| 250D MA | 145.15 (+26.4%) |
| 52W Low / High | 108.56 / 192.78 |
SNOW vs SPY: Strong Short-Term Outperformance
While SNOW underperformed the S&P 500 (SPY) over the last year, recent periods tell a different story. Over the past two weeks, SNOW gained 8.9% versus SPY's 6.0%. Over the last month, SNOW returned 27.9% to SPY's 12.5%—clear signs of surging short-term strength. Here’s how the performance stacks up:
| Duration | SNOW Return | SPY Return | Low | High |
|---|---|---|---|---|
| Today | +0.3% | -0.1% | 180.60 | 184.09 |
| 2 Weeks | +8.9% | +6.0% | 167.32 | 184.29 |
| 1 Month | +27.9% | +12.5% | 135.38 | 184.29 |
| 3 Months | -0.8% | -2.7% | 120.10 | 187.95 |
| 6 Months | +42.1% | +0.9% | 120.10 | 194.40 |
| 1 Year | +11.3% | +13.1% | 107.13 | 194.40 |
| YTD | +18.8% | +1.4% | 120.10 | 194.40 |
| 3 Years | +29.6% | +57.2% | 107.13 | 237.72 |
| 5 Years | -- | +110.2% | -- | -- |
Technical trend is up—stock price sits just 5.6% below its 52-week high, and is breaking above expected resistance ($188.24) but below support ($177.52).
Option Skew Indicators Are Slightly Bearish Despite Bullish Trade Structure
Option market data reveals a slightly bearish outlook for SNOW, based on a proprietary 30-day implied volatility skew ranked at 39%—where 0% marks the most bearish and 100% the most bullish over the last year. While this suggests caution among some options traders, it’s notable that large directional bets like this call spread still emerge, perhaps reflecting divergent short- and long-term views.
Market Context and Catalysts: Earnings on Deck
Today’s trading is set against a busy news cycle, with major retailers reporting and SNOW slated to release earnings after the market close. This adds a layer of volatility and potential opportunity—or risk—for traders betting on SNOW’s future. Pre-market moves and S&P 500 weakness haven’t dampened optimism around this high-conviction call spread play.
Stay on top of future multi-leg trades and options strategies using the multi-leg trade screener.
Key Takeaways: Bullish Momentum with Cautious Option Signals
This sizeable SNOW call spread is a noteworthy, high-reward wager, potentially converting a $3.3 million premium into a $7.8 million payout if the stock breaks above $250 by September expiration. While short-term technicals are decidedly bullish, and SNOW is showing fresh relative strength versus SPY, the option market’s implied volatility skew reminds traders not everyone is convinced the rally can continue at this pace.
With earnings looming, and both technical and options data offering a mix of optimism and caution, this call spread stands as a prime example of how conviction and hedging co-exist in today’s market. For investors watching SNOW, the weeks ahead promise plenty of action to justify all this options volume—and maybe more trades like this one to come.
Contact Information:
If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.
About the Publisher - Marketchameleon.com:
Marketchameleon is a comprehensive financial research and analysis website specializing in stock and options markets. We leverage extensive data, models, and analytics to provide valuable insights into these markets. Our primary goal is to assist traders in identifying potential market developments and assessing potential risks and rewards.
NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
The information is provided for informational purposes only and should not be construed as investment advice. All stock price information is provided and transmitted as received from independent third-party data sources. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.