+ Watch CBOE
on My Watchlist
Derivatives and other more creative trading vehicles are becoming more and more popular, and I expect this trend to continue.
This stock represents a "Broker on steroids", with the options trade it will sail outta sight!
A David recommendation and appears to have a huge addressable market. Plus a rock solid balance sheet. Gotta love it. Or so I hope, anyway!
Historically seen, a bull market is followed by volatility in the next calendar year as investors take profits, etc. This should help CBOE, set to profit from increased volume of contracts. It is of course a SA pick as well-and I usually don't be against those guys either.
Assuming that there will be an increase in interest for options trading in the next 5 years.
Growing options marketNo debt, growing dividendWatch payout ratio and growth
This should be the ultimate money making machine. Market up or down there will be trades and fees!
Div. (Yield) $0.72 (1.3%)Current Yield 2.98%
CBOE operates in the large and growing derivatives market. It's the global leader in options technology and innovation, and it has growth initiatives in place with new volatilay products and expanded trading hours to accommodate European traders. The company is incredibly profitable, with an ROE > 60% the past three years, and in the same time frame it has grown earnings at a compounded rate of >30%. And this is all in a market environment with historically low volatility. I'm betting that CBOE's profitability and growth initiatives should fuel market-beating returns over the next several years.
s&p 5 star07/03/13 11:25 am ET S&P REITERATES STRONG BUY OPINION ON SHARES OF CBOE HOLDINGS (CBOE 46.93*****): We raise our 2013 EPS estimate by $0.05 to $2.05 and keep 2014's at $2.35, which compare to consensus estimates from Capital IQ at $2.01 and $2.26, respectively. We are upping our target price by $4 to $54, applying a forward P/E of 23X, near peers. Yesterday, CBOE reported June trading volume up 28% year/year for index options and up 9% in ETP options, partly offset by a 12% decline in equity option trading. Pricing is higher for index and ETP products. Also, CBOE's VIX index futures product was up 105% year/year in June. We see increased market volatility benefiting CBOE. /Kenneth Leon, CPA
More volatility, more need to hedge
Below IPO price, suggesting undervaluation. Management seems to agree, as they are buying back shares. Proprietary options on S&P are growing in volume. Will release new exchange C2 in january, fueling growth. P/E reasonable with future growth rate. High frequency trading is on the rise, meaning higher commissions. Options use may continue to increase as well. No other major competitors in options markets; huge sustainable competitive advantage. Great PM, good Debt/Equity.
Not sure. Just needed a 7th Stock in CAPS.
Real life holding.Foresee an ever growing increase in options trading, and upcoming launch of further electronic options exchange services as well as product line growth.
There is nothing but upside here.I believe that option trading will continue to grow at an even faster pace than it has been. ( I believe 25%+ annually over the last five years) I also that think that as FinReg sets in, third-parties will be required to clear all Forex and other derivitive trades. CBOE stands to benefit from that. *I also like CME right now at the current almost 52w low of $238 for the same reasons.
I like the growth of this company in the longer term. Options trading will only get stronger.
Scruffy believes in this company.
biggest options exchange
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