What: Shares of Intrawest Resorts Holdings Inc (NYSE:SNOW) jumped as much as 33% in early trading Tuesday after announcing a buyback plan. As of 11:00 a.m. ET, shares had fallen slightly and were up 23% for the day.

So what: Intrawest announced a plan for a modified Dutch auction to purchase up to $50 million in stock. The offer price won't be greater than $10 per share, but it also won't be less than $9 per share, which is why shares jumped so much today. The tender expires on February 10, 2016.  

Now what: For a company with a $389 million market cap, even after today's pop, this is a huge buyback. What's interesting is that Intrawest has lost money over the past year, so management must see a huge improvement in operations coming. Long term, I think this is a good sign, but it's only one data point, and investors should watch for operational improvements this winter season.

In the meantime, it looks like taking the $9 per share offer price would be a wise move since shares are still trading below that level.