Snowflake Inc. (SNOW) jumped 35% this week after a massive earnings beat.
While a move like this creates excitement, it could also contain a hidden danger for traders who act too quickly.
The options market tends to behave in a specific way after a gap-up like this that can catch a lot of traders off guard. Mike Shorr broke down what to watch on Benzinga this week…
And his take might surprise you.
The analysis, insights, and strategies shared by Prosper Trading Academy’s coaches in Prosper Insider are strictly for educational and informational purposes only. All content reflects the personal opinions of the coaches and should not be construed as specific investment advice or recommendations. Any examples discussed are illustrative in nature and do not represent actual live trade signals or instructions to buy or sell securities. Trading involves risk, and individuals should carefully evaluate their own financial situation before making investment decisions.
Mike covers:
- Why he would wait before entering a trade in SNOW
- The key support level on SNOW’s chart he would watch
- The costly mistake many traders make when a stock rises this dramatically
- What can happen to options pricing in the hours following a massive earnings move
- How the size of the gap in SNOW could make the trade trickier
- Why he believes patience could be the underrated edge
