CBOE Holdings (CBOE)

CBOE Holdings (CBOE)

Postby winston » Sat Oct 22, 2016 9:38 pm

not vested

Stock Exchanges to Trade: CBOE Holdings (CBOE)

The CBOE is actually known as an options market operator and not a stock exchange. However, that could be close to changing.

CBOE is looking to acquire electronic exchange Bats Global Markets Inc (BATS:BATS) in a $3.2 billion deal by next spring. According to Barron’s, a merger could provide a radical transformation and prove a huge boon for CBOE and makes this a name to buy on any weakness.

We couldn’t agree more with Barron’s. As the chart suggests, that day of reckoning appears to be unfolding. Other investors have been less enthusiastic about the apparent synergies of this still pending deal and CBOE shares are currently below 200-day simple moving average and just barely breaching a long-term, trendline support.

In this situation, thinking the weakness may not be over just yet, but not minding the purchase of shares at lower levels due to deal’s underlying value to the CBOE franchise, the Dec $60/57.50 bull put spread is attractive.

Priced at 40 cents with shares at $63.50, the trader receives the full credit as long as shares are above $60 at expiration. That allows for a decent size decline in CBOE of 5.5%. Earnings however, scheduled for next Friday could force that type of move in short order.

Below the sold $60 strike the trader has the opportunity to take possession of CBOE stock through assignment and essentially become a buyer on weakness. What’s more, in the event that no longer looks as appealing, risk with this spread is limited no matter what may transpire in the future.

Source: investor Place
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Re: CBOE Holdings (CBOE)

Postby winston » Wed Jul 05, 2017 9:20 pm

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IF STOCKS SOAR, WATCH THIS COMPANY

Today's chart highlights a company that will benefit from Steve's "Melt Up" thesis...

Regular readers know Steve believes we're entering the final stages of this historic bull market, where stocks will explode higher.

If he's right, it could provide a big boost for trading-exchange stocks like CBOE Holdings (CBOE).

CBOE is the owner of the Chicago Board Options Exchange, the Bats Global Markets exchanges, the CBOE Futures Exchange, and other subsidiaries.

In other words, if you're trading options in the U.S., there's a good chance you're using CBOE's services.

The company collects fees as investors buy and sell. So when trading volume skyrockets, so do shares of CBOE.

As the market has marched higher this year, so have CBOE shares. Traders and investors continue to pour into the market, meaning more money in CBOE's pockets.

Shares are already up more than 40% over the last year... and recently hit a new all-time high. If the Melt Up pushes more investment money into the market, CBOE shares will continue their surge...

Source: Daily Wealth
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Re: CBOE Holdings (CBOE)

Postby winston » Wed Mar 14, 2018 11:52 am

Stock of the Week

by Rick Pendergraft

CBOE Global Markets (CBOE) is a diversified options exchange that operates in five segments: Options, U.S. Equities, Futures, European Equities, and Global FX.

The products offered through the various segments include options on equities and indices, equities, futures, bitcoins, exchange-traded products, exchange-traded commodities, and foreign exchange services.

The company was founded in 1973 and is headquartered in Chicago, Illinois.
CBOE has seen solid growth over the last three years.

The earnings per share have grown by an average of 13% while sales have grown by an average rate of 47% over this time.

The company’s profit margin is an incredible 49% while the return on equity is at 23.2%.

Suggested strategy: Buy CBOE with a maximum entry price of $130. I would set a target of at least $170 over the next six to nine months (for a potential return of over 35% from current prices). I would suggest a stop loss at the $110 level.

Source: Daily Trade Alert

http://dailytradealert.com/2018/03/13/s ... he-week-9/
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