Have you ever wondered what makes a stock not just good, but exceptional? Picture this: a company that thrives in the heart of the financial markets, capitalizing on a trading frenzy that’s only getting hotter. I’m talking about a stock that’s been quietly outperforming the market for years, with a chart so clean it feels like it was drawn by an artist. That’s the story of Cboe Global Markets, a financial powerhouse that’s riding the wave of an options trading boom. Let’s dive into why this stock is capturing the attention of investors in 2025.
The Rise of Cboe Global Markets
The financial world is a wild place, full of ups and downs that keep investors on their toes. At the center of this chaos is Cboe Global Markets, a company that’s become a cornerstone of the options trading universe. Born from the Chicago Board of Trade’s vision in the 1970s, Cboe carved out its niche by standardizing options contracts, making it easier for traders to bet on stock prices. Fast forward to today, and Cboe is a global leader, handling millions of contracts daily and thriving in a market that’s more active than ever.
What makes Cboe stand out? It’s not just about trading volume, though that’s certainly impressive. The company has found a way to balance high-growth opportunities with remarkable stability, a rare combo in the financial sector. In my view, it’s the kind of stock that makes you feel like you’re cheating the system—steady returns with a side of excitement.
A Brief History of Options Trading
Let’s take a quick trip back to 1973, when the financial world was a different beast. The Chicago Board of Trade decided to shake things up by launching the Chicago Board Options Exchange, or Cboe. They started with options on just 16 companies—think big names like IBM. These contracts were a hit, especially during the volatile markets of the 1970s. By 1983, Cboe introduced the S&P 100 options, known by the ticker OEX, a game-changer that let traders bet on entire market indices.
Options trading transformed how investors approach risk and reward, opening doors to both speculation and protection.
– Financial market historian
Since then, Cboe has grown into a global juggernaut, handling everything from stock options to volatility indices like the VIX. The company’s ability to adapt to changing markets has kept it ahead of the curve, and today, it’s at the forefront of a new trading revolution.
The Options Boom: Why Now?
If you’ve been paying attention to the markets, you’ve probably noticed the surge in options trading. Since 2020, a new generation of retail traders has flooded the scene, armed with apps and a hunger for quick gains. Cboe has been a massive beneficiary of this trend. In June 2025, the exchange reported record-breaking trading volumes, with S&P 500 options hitting an average daily volume of 3.7 million contracts. Even more striking? Over 60% of these trades are zero-day-to-expiry (0DTE) options, a fast-paced style that’s taken the market by storm.
Why does this matter? Because Cboe isn’t just a bystander—it’s the engine powering this frenzy. The exchange processes these trades, collects fees, and provides the infrastructure that keeps the market humming. It’s like owning the toll booth on the busiest highway in town.
- Record Volumes: June 2025 saw unprecedented trading activity, with 0DTE options reaching 2.1 million contracts daily.
- Retail Power: Over half of S&P 500 options trades are driven by retail investors, a trend that’s still growing.
- Global Reach: Cboe’s infrastructure supports traders worldwide, making it a linchpin in global markets.
Cboe’s Stock: A Chart to Love
Let’s talk about the stock itself. If you’re a fan of clean, predictable charts, Cboe Global Markets (CBOE) is your kind of stock. Since going public, it’s delivered a staggering 854% cumulative return, crushing the S&P 500’s 647% over the same period. That’s a 16% annualized return compared to the market’s 14%. What’s even more impressive is how it’s done this with half the volatility of the broader market, boasting a beta of just 0.43.
I’ve always believed that low volatility paired with strong returns is the holy grail for investors. Cboe’s chart is a thing of beauty—tight, steady uptrends with minimal drama. Even during market turbulence, like the dip in April 2025, buyers stepped in to defend the stock’s 200-day moving average, proving its resilience.
A stock with low volatility and high returns is like finding a unicorn in the financial markets.
– Investment strategist
Why Cboe Is a Smart Bet
Cboe’s success isn’t just about riding the options wave—it’s about building a business that’s tough to beat. The company has diversified its revenue streams, moving beyond transaction fees to more stable, subscription-based income. Its Data and Access Solutions (DnA) business, for example, provides market data and infrastructure to clients worldwide, creating a steady cash flow that doesn’t rely on market swings.
This shift toward recurring revenue is a big deal. It’s like a restaurant that doesn’t just sell meals but also has a thriving subscription box service. From 2020 to the latest quarter, Cboe has grown its revenue by 5% annually, operating income by 13%, and earnings per share by 14%. Those are numbers that make investors sit up and take notice.
| Metric | Annual Growth (2020-2025) |
| Revenue | 5% |
| Operating Income | 13% |
| Earnings Per Share | 14% |
What’s Next for Cboe?
Looking ahead, Cboe is gearing up for its next earnings report on August 1, 2025. Analysts are expecting revenue of $575 million, a 12% jump from last year, and earnings per share of $2.43, up 13%. These numbers suggest the company is on a solid trajectory, but the real kicker is its ability to keep growing its non-transaction revenue. As Cboe leans into subscription-based services, it’s setting itself up for even more predictable earnings, which could push its valuation higher.
But here’s where it gets interesting. The options market is still evolving, with new products and trading styles emerging. Cboe’s leadership in 0DTE options puts it at the forefront of this trend, and its global infrastructure means it’s well-positioned to capture growth in markets beyond the U.S. In my experience, companies that dominate a niche while diversifying their income are the ones that keep winning.
Risk Management: Playing It Smart
No stock is perfect, and even Cboe has its risks. Earnings reports can bring surprises, and a miss could cause a temporary dip. My take? If the company meets expectations and raises its guidance, any short-term volatility is likely a buying opportunity. For traders, the $220 price level is key—it’s acted as a strong support point in recent months. If the stock dips below, it might be worth looking at other setups.
For long-term investors, the focus should be on the 200-day moving average. It’s been a reliable trend indicator for Cboe, and as long as the stock stays above it, the uptrend is intact. Check the chart every Friday close to stay on top of things.
- Monitor Earnings: Watch the August 1, 2025, report for revenue and guidance updates.
- Track Support Levels: Use $220 as a pivot for short-term trades.
- Stay Disciplined: Stick to the 200-day moving average for long-term confidence.
Why Cboe Fits Your Portfolio
So, why should you care about Cboe Global Markets? For one, it’s a rare blend of growth and stability, offering the kind of risk-reward profile that portfolio managers dream about. Its dominance in the options market, coupled with its push into recurring revenue, makes it a stock that can weather market storms while still delivering strong returns.
Perhaps the most exciting part is Cboe’s role in a market that’s still growing. As retail traders continue to embrace options, and as new products like 0DTE gain traction, Cboe is perfectly positioned to keep cashing in. It’s not just a stock—it’s a front-row seat to the future of trading.
Investing in Cboe is like betting on the house in a casino—the odds are in your favor.
– Market analyst
In my view, Cboe is the kind of stock you buy and hold, checking in occasionally to admire its steady climb. Whether you’re a seasoned investor or just dipping your toes into the market, this is one name worth watching. So, what’s stopping you from adding it to your watchlist?
At the end of the day, Cboe Global Markets isn’t just another financial stock—it’s a story of innovation, resilience, and growth. From its humble beginnings in a Chicago trading pit to its current status as a global powerhouse, Cboe has proven it can adapt and thrive. As the options market continues to heat up, this stock might just be your ticket to riding the wave. Keep an eye on that earnings report, and don’t be surprised if Cboe keeps climbing the charts.
