Snowflake Soars 2.66% Amid Q3 Earnings Surge and Insider Sales: What’s Fueling the Rally?

Summary
• Snowflake (SNOW) surges 2.66% to $222.05, hitting an intraday high of $223.6
• Q3 2026 revenue jumps 29% to $1.21B, signaling robust growth
• Frank Slootman files to sell 200,000 shares via Rule 144
• Options chain shows heavy call buying at $225–$230 strikes

SNOW’s sharp intraday rally on December 18, 2025, reflects a mix of bullish earnings momentum and bearish insider activity. The stock’s 2.66% gain—driven by a $1.21B Q3 revenue beat and strategic AI partnerships—clashes with a $44.4M insider sale by Chairman Frank Slootman. Traders are now parsing technicals and options data to gauge whether this is a breakout or a short-term bounce.

Q3 Earnings Surge and Insider Selling Create Divergent Signals
Snowflake’s 2.66% intraday gain stems from a $1.21B Q3 revenue report, a 29% YoY increase, and new AI partnerships with Anthropic and AtScale. However, Frank Slootman’s planned sale of 200,000 shares via Rule 144—valued at $44.4M—introduces short-term uncertainty. The stock’s 52-week high of $280.67 remains a distant target, but the 30.64 RSI and 30-day moving average at $244.75 suggest oversold conditions. The $222.05 price sits above the 200-day MA of $207.69, hinting at a potential rebound from multi-month lows.

Data Processing Sector Mixed as IBM Slumps, SNOW Rallies
The Data Processing & Outsourced Services sector is split, with Snowflake’s 2.66% gain contrasting IBM’s -0.95% decline following its $11B Confluent acquisition. IBM’s move to bolster AI infrastructure highlights sector-wide demand for data integration, yet SNOW’s 37% YTD gain outpaces IBM’s 15.37% return. While IBM’s acquisition targets enterprise AI scalability, Snowflake’s 29% revenue growth and 76.4% gross margin signal stronger near-term execution.

Leveraged ETFs and Call Options Target $225–$230 Breakout
• T-REX 2X Long SNOW Daily Target ETF (SNOU): 5.88% gain, ideal for leveraged exposure
• YieldMax SNOW Option Income Strategy ETF (SNOY): 2.34% gain, offers income-focused positioning
• 200-day MA: $207.69 (below current price), RSI: 30.64 (oversold), MACD: -9.85 (bearish), Bollinger Bands: $203.50–$268.42

SNOW’s 30.64 RSI and 30-day MA at $244.75 suggest a short-term rebound. Key levels to watch: $224.36 (200D resistance) and $264.54 (30D resistance). The T-REX 2X Long SNOW ETF (SNOU) offers 2x leverage for aggressive bulls, while the YieldMax SNOW ETF (SNOY) suits income seekers. For options, two contracts stand out:

1. SNOW20251226C225
• Strike: $225, Expiry: 12/26, IV: 30.78%, Leverage: 71.64%, Delta: 0.4114, Theta: -0.6400, Gamma: 0.0362, Turnover: 898,918
• IV (30.78%): Mid-range volatility, Delta (0.4114): Balanced sensitivity, Gamma (0.0362): Strong price responsiveness
• This call option offers a 71.64% leverage ratio with moderate delta and high gamma, ideal for a $225–$230 breakout. Projected 5% upside (to $233.15) yields a $8.15 payoff (max(0, 233.15 - 225)).

2. SNOW20251226C227.5
• Strike: $227.5, Expiry: 12/26, IV: 30.81%, Leverage: 99.59%, Delta: 0.3256, Theta: -0.5389, Gamma: 0.0335, Turnover: 27,370
• IV (30.81%): Mid-range volatility, Delta (0.3256): Lower sensitivity, Gamma (0.0335): Strong price responsiveness
• This call offers 99.59% leverage with a lower delta, suiting traders expecting a sharp $227.5+ move. A 5% upside (to $233.15) yields a $5.65 payoff (max(0, 233.15 - 227.5)).

Aggressive bulls should target SNOW20251226C225 into a close above $225, while SNOW20251226C227.5 suits those expecting a $227.5+ breakout.

Backtest Snowflake Stock Performance
The backtest of Snowflake (SNOW) performance after a 3% intraday increase from 2022 to now shows mixed results. While the stock experienced a positive change, the overall trend was negative, with the 30-day return being -5.71% and the maximum return during the backtest period being only 0.28%. This suggests that while there was a brief uptick, it was not enough to sustain a positive trajectory in the longer term.

SNOW’s Rally Faces Crucial Test at $225: Act Now or Miss the Breakout
Snowflake’s 2.66% intraday surge hinges on its ability to break above $225, a level that could validate its Q3 earnings-driven momentum. The 30.64 RSI and 200-day MA at $207.69 suggest a short-term rebound, but Frank Slootman’s $44.4M insider sale introduces caution. Traders should monitor the T-REX 2X Long SNOW ETF (SNOU) for leveraged exposure and the SNOW20251226C225 call for a $225–$230 breakout. Meanwhile, sector leader IBM (-0.95%) underscores the need for SNOW to outperform. Watch for a $225 close or a $227.5+ breakout to confirm the rally’s sustainability.