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"Tony The Tiger" - A Food Stock

The mood of Wall Street is now changing as the reality of tariffs is starting to kick in. Two weeks ago not so much so. Kelloggs had "so-so" earnings come out a few weeks ago and the stock exploded upwards. Note the very last line above mentions the effects of tariffs are not taken into consideration. So many stocks with "so-so" earning reports have jumped in price based on the "lets make America great again" slogan. Deere stock is shooting to the moon as I keep writing about in spite of declining sales in the last quarter. The sentiment seems to be that they are immune to tariffs. On paper they might be. Read this. Americans are struggling to buy gas, eggs and insurance. Total housing starts in the U.S.in 2024 were down 3.9%. Walmart, the recent darling stock in the last four weeks for Call option players woke up this morning with an earnings report which was healthy but with came with some caveats. Here is what happened. Perhaps the U.S. is starting ...
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Snowflake Call Options

Snowflake is a company valued at 1.22 billion. It's a California based company, a cloud data provider. A Silicon Valley high tech story. What I know is that "Barron's" recently did an extensive article on this company and I know the stock trades in an erratic manner. Here is it's chart this morning just after an earnings report release.
So what you might say. I understand. It's a situation outside the realm of most option traders. They are expensive options to purchase. Look for example at this readout from exactly one month ago. It shows the stock down on the day to $131.55 and the 131.00 Call options series on them which had three weeks to go before expiring. Many option traders are not willing to pay the premiums incurred with buying that much time. Notice the then current price of $740.00 per contract. Who wants to pay that much for just one contract? Not very many traders. In hindsight, these options ended up tripling in price!
All of this brings us to a look at the Call options on Snowflake on Monday and Tuesday this week knowing an earning report was coming out this morning. Look at these two screen shots. The first screen shots show a five day chart on Monday. It's not pretty.
Now here is a screen shot of the 150 Calls at two different times during the day.
Not many contracts are being traded. If we look at a slightly higher striking price, the 155 Calls we will notice its the same thing.
Think about what your getting for your money? In the case of the 155 series of Calls the stock would have to go up eleven dollars by the end of the week just to break even! Now what? Let's look at the Snowflake chart yesterday, one day prior to the earnings report. A once ugly chart now showing some signs of a comeback.
Here now is the earning report news.They knocked things out of the park.
Here are the 150 Calls after this one day surge.
$45.00 up from around $10.00 two days ago. This type of trading is not for the faint of heart. Snowflake is not a stock I understand well enough to play options on.

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