CBOE Global (CBOE) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earnings ...

Core Insights - The SIBO volatility index has decreased to its lowest level in nearly two weeks, indicating a calm surface in the market, but underlying issues may still exist [1] - Individual stock volatility is significantly higher than the index level, suggesting that while the overall market appears stable, specific stocks are experiencing substantial fluctuations [2][4] Volatility Measures - The VIX EQ index, which measures single stock volatility, has recently reached an all-time high, indicating increased anxiety around earnings and valuations, particularly for high-profile tech stocks [3][4] - The widening spread between VIX EQ and VIX typically occurs before earnings announcements, reflecting heightened expectations for stock movements [3] Market Dynamics - The current market environment shows a notable dispersion in stock performance, with large-cap stocks like Apple and Amazon experiencing greater volatility compared to smaller stocks [5] - Despite significant individual stock volatility, the overall index volatility remains muted due to the uncorrelated movements of different sectors [5][6] Investor Sentiment - There has been a noticeable increase in hedging demand among investors, particularly as they seek downside protection and aim to lock in year-to-date gains [9] - The options market is reflecting a low level of volatility, leading to cheaper premiums for both call and put options, which may encourage increased trading activity [16] Bond Market Observations - The bond market has shown a decline in yields while inflation expectations are rising, suggesting that the Federal Reserve may prioritize labor market conditions over inflation risks [12] - This easing of financial conditions has contributed to positive performance across various asset classes [13] Future Outlook - The upcoming earnings season and potential interest rate cuts by the Federal Reserve are expected to influence market volatility, with options pricing indicating a 3% potential move in either direction for the S&P 500 ETF [14][15] - Investors are currently assessing the low levels of volatility as an opportunity to hedge against potential market shifts [17]

Core Points - Cboe Global Markets has declared a quarterly cash dividend of $0.72 per share for the fourth quarter of 2025, payable on December 15, 2025, to stockholders of record as of November 28, 2025 [1] Company Overview - Cboe Global Markets is recognized as the world's leading derivatives and securities exchange network, providing advanced trading, clearing, and investment solutions globally [2] - The company offers trading solutions across multiple asset classes, including equities, derivatives, and foreign exchange, in regions such as North America, Europe, and Asia Pacific [2] - Cboe is dedicated to creating a trusted and inclusive global marketplace that supports sustainable financial futures for its users [2]

Core Viewpoint - Cboe Global Markets is seeking to extend options trading hours, moving towards "overnight trading" in the U.S. market [1] Group 1: Proposed Changes - The company has proposed to add trading hours outside of the regular trading session, specifically from 7:30 AM to 9:25 AM and from 4:00 PM to 4:15 PM [1] - This extension aims to align with overseas demand and is part of a broader trend among U.S. exchanges to lengthen trading hours [1] Group 2: Implementation Details - The proposed changes will only apply to certain categories of stock options, depending on trading volume, market capitalization, and trading activity [1] - The expansion will be limited to specific contracts and will be tested in a small-scale pilot before broader implementation [1]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to associated risks and volatility [1] Group 1: Company Overview - CBOE Global (CBOE) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - CBOE holds a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - CBOE has a historical EPS growth rate of 13.9%, with projected EPS growth of 13.1% for the current year, surpassing the industry average of 10.1% [4] Group 3: Asset Utilization - CBOE's asset utilization ratio is 0.53, indicating that the company generates $0.53 in sales for every dollar in assets, significantly higher than the industry average of 0.24 [5] Group 4: Sales Growth - The company's sales are expected to grow by 10.5% this year, compared to the industry average of 6.6%, highlighting its strong sales growth potential [6] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for CBOE have been revised upward, with the Zacks Consensus Estimate increasing by 1.2% over the past month, indicating positive momentum [8][10] Group 6: Investment Positioning - CBOE's combination of a Zacks Rank 2 and a Growth Score of A positions it well for outperformance, making it an attractive option for growth investors [10]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding in stock selection [3][4] Zacks Style Scores - The Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score identifies undervalued stocks using financial ratios [4] - Growth Score emphasizes a company's financial health and future growth potential [5] - Momentum Score tracks price trends to capitalize on stock price movements [6] - VGM Score combines all three styles to provide a comprehensive stock rating [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.81% since 1988 [8] - There are over 800 stocks rated 1 or 2, making it essential to utilize Style Scores for better stock selection [9] Stock Example: Cboe Global Markets - Cboe Global Markets, a major stock exchange operator, holds a 3 (Hold) Zacks Rank and has a VGM Score of A [12] - The company is projected to achieve year-over-year earnings growth of 12.3% for the current fiscal year, with upward revisions in earnings estimates [13] - Cboe's average earnings surprise stands at +1.9%, making it a strong candidate for growth investors [13]

Core Insights - Cboe Global Markets reported record-breaking options trading activity in September and Q3 2025, driven by strong investor engagement and growth in proprietary index products [3][4][12] Trading Volume Highlights - Total U.S. options volume reached an average daily volume (ADV) of 20.5 million contracts in September and 18.8 million in Q3, both setting new records [7] - Index options volume achieved a new quarterly ADV record of 4.9 million contracts, with an all-time high of 4.3 million SPX options contracts in September [7] - Mini-SPX options recorded a quarterly ADV of 119,000 contracts, indicating increased adoption among institutional and retail investors [7] Global Trading Performance - Cboe's international businesses experienced double-digit growth in equities and FX trading volumes across multiple regions [5] - European equities trading volume rose 16.5% year-over-year to €11.8 billion in matched notional value for September [8] - Canadian equities increased by 29.6% year-over-year, totaling nearly 193 billion matched shares [8] - Australian equities advanced 17.3% year-over-year to AUD 1.05 billion [8] - Global FX volumes increased by 9% year-over-year, totaling $52.4 billion in average daily volume [8] RPC and Net Revenue Capture Guidance - Preliminary guidance for Q3 2025 average revenue per contract (RPC) and net revenue capture was provided, reflecting three-month rolling averages [6] - RPC values are influenced by exchange fee structures, transaction mix, and volume-based discounts, serving as a measure of pricing efficiency [10] Market Context and Outlook - Strong market engagement and volatility supported record-breaking derivatives volumes, with the integration of digital futures contributing to growth momentum [11] - Cboe's global expansion and ongoing investment in technology, clearing, and data services are central to its diversified revenue model [12]

Core Insights - The article discusses the evolution and significance of exchanges in the financial marketplace, highlighting their network effects and the value they create through increased trading activity [2][4][5]. Group 1: Historical Context and Market Dynamics - The New York Stock Exchange (NYSE) was founded in 1792, and over time, entry into this marketplace became increasingly expensive, with memberships selling for over $6 million in inflation-adjusted dollars by the 1990s [1]. - Exchanges benefit from network effects, where increased participation leads to more trading activity, enhancing liquidity and attracting more traders [2][3]. Group 2: Key Exchange Players - CME Group Inc. (CME) is a leader in futures trading, holding over 95% market share in U.S. interest rate futures and issuing all futures contracts on major indexes like the S&P 500 [8]. - Cboe Global Markets Inc. (CBOE) has established a dominant position in index options, maintaining a 99% market share, and has seen a 24% return since being recommended as a top cyclical stock [12][13]. - Robinhood Markets Inc. (HOOD) has capitalized on the meme stock phenomenon and is now exploring opportunities in prediction markets, which analysts expect to grow 28% annually through 2030 [15][17]. Group 3: Investment Opportunities - CME shares rose as much as 25% following a selloff, indicating a favorable buying opportunity for investors looking to capitalize on volatility [9][10]. - Cboe's revenue growth accelerated from 5% to 14%, driven by rising volatility and increased popularity of zero-day-to-expiry options, suggesting continued upward momentum for the stock [13][14]. - Robinhood's expansion into prediction markets could lead to significant growth, especially as it positions itself ahead of competitors in a nascent market [16][19]. Group 4: Emerging Markets - A potential $4 trillion trading market is emerging, linked to President Trump's Executive Order 14178, which could revolutionize global financial markets [21][22].

Core Insights - Cboe Global Markets, Inc. reported September trading volume statistics and provided guidance for revenue per contract/net revenue capture metrics for Q3 2025 [1] Trading Volume Statistics - The report includes an overview of September trading statistics and market share by business segment [1] - Specific volume data in select index products is highlighted [1] Revenue Metrics - The report details RPC/net revenue capture, which is reported on a one-month lag across business lines [1]

Core Insights - Cboe Global Markets has appointed Rob Hocking as Executive Vice President, Global Head of Derivatives, and Brian McElligott as Senior Vice President, Global Head of Cboe Data Vantage, effective October 1, 2025 [1][5] Group 1: Leadership Changes - Rob Hocking rejoins Cboe with over 25 years of experience in global derivatives markets, previously serving as Senior Vice President, Global Head of Product Innovation [2][3] - Brian McElligott brings more than 25 years of experience in data and analytics, having held leadership roles at CME Group and Tradeweb [3][4] - Hocking will succeed Cathy Clay, who is leaving for a new opportunity, and both new appointees will be based in Chicago [1][5] Group 2: Strategic Focus - Hocking will oversee Cboe's global derivatives business, including futures and options markets in the U.S. and Europe, and proprietary products like S&P 500 Index options and VIX franchises [2][4] - McElligott will manage Cboe's market data and access services, global indices, risk and market analytics, and execution solutions [3][4] - The leadership changes are expected to advance Cboe's strategic priorities and accelerate innovation in derivatives and data businesses [4]