Cboe Global Markets (CBOE)
Market Price (6/1/2026): $309.51 | Market Cap: $32.4 BilSector: Financials | Industry: Financial Exchanges & Data
Cboe Global Markets (CBOE)
Market Price (6/1/2026): $309.51Market Cap: $32.4 BilSector: FinancialsIndustry: Financial Exchanges & Data
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 58%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 57%, CFO LTM is 2.8 Bil, FCF LTM is 2.7 Bil Attractive yieldFCF Yield is 7.8% Low stock price volatilityVol 12M is 23% Megatrend and thematic driversMegatrends include Crypto & Blockchain, AI in Financial Services, and Fintech & Digital Payments. Themes include Cryptocurrency Exchanges, Show more. | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 20x Key risksCBOE key risks include [1] the potential for lower trading volumes in its flagship VIX products during periods of reduced market volatility. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 58%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 57%, CFO LTM is 2.8 Bil, FCF LTM is 2.7 Bil |
| Attractive yieldFCF Yield is 7.8% |
| Low stock price volatilityVol 12M is 23% |
| Megatrend and thematic driversMegatrends include Crypto & Blockchain, AI in Financial Services, and Fintech & Digital Payments. Themes include Cryptocurrency Exchanges, Show more. |
| Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 20x |
| Key risksCBOE key risks include [1] the potential for lower trading volumes in its flagship VIX products during periods of reduced market volatility. |
Qualitative Assessment
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Cboe Global Markets (CBOE) stock has gained about 10% since 2/28/2026 because of the following key factors:
1. Cboe Global Markets reported exceptional first-quarter 2026 financial results that surpassed analyst expectations and led to an upward revision in full-year guidance. The company achieved record diluted earnings per share (EPS) of $3.66, marking a 54% increase year-over-year, and record adjusted diluted EPS of $3.70, up 48% year-over-year. Net revenue also reached a record $728.9 million, a 29% increase from the prior-year period, exceeding forecasts. Following these results, Cboe increased its 2026 organic total net revenue growth target to 'low double-digit to mid-teens' from 'mid single-digit' and decreased its 2026 adjusted operating expense guidance. This strong performance and optimistic outlook contributed significantly to the stock's appreciation, with the stock gaining 9.59% in a single week after the earnings release.
2. The company experienced robust growth in its derivatives business, particularly in index options trading volumes. Derivatives net revenue grew 32% year-over-year in Q1 2026. Cboe reported a record proprietary index options average daily volume (ADV) of 6.0 million contracts in February 2026, a 33.7% increase year-over-year. This was significantly driven by S&P 500 Index (SPX) options, which saw a record ADV of 4.8 million contracts, and Zero-Days-to-Expiry (0DTE) SPX options, reaching a record 3.0 million ADV, representing 63% of all SPX trading in February. Total options ADV rose 10%.
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Stock Movement Drivers
Fundamental Drivers
The 11.5% change in CBOE stock from 2/28/2026 to 5/31/2026 was primarily driven by a 10.5% change in the company's Net Income Margin (%).| (LTM values as of) | 2282026 | 5312026 | Change |
|---|---|---|---|
| Stock Price ($) | 299.09 | 333.56 | 11.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,714 | 4,792 | 1.7% |
| Net Income Margin (%) | 23.3% | 25.8% | 10.5% |
| P/E Multiple | 28.5 | 28.3 | -0.7% |
| Shares Outstanding (Mil) | 105 | 105 | 0.0% |
| Cumulative Contribution | 11.5% |
Market Drivers
2/28/2026 to 5/31/2026| Return | Correlation | |
|---|---|---|
| CBOE | 11.5% | |
| Market (SPY) | 10.6% | -5.2% |
| Sector (XLF) | 0.8% | 1.0% |
Fundamental Drivers
The 29.8% change in CBOE stock from 11/30/2025 to 5/31/2026 was primarily driven by a 21.1% change in the company's Net Income Margin (%).| (LTM values as of) | 11302025 | 5312026 | Change |
|---|---|---|---|
| Stock Price ($) | 257.00 | 333.56 | 29.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,618 | 4,792 | 3.8% |
| Net Income Margin (%) | 21.3% | 25.8% | 21.1% |
| P/E Multiple | 27.3 | 28.3 | 3.4% |
| Shares Outstanding (Mil) | 105 | 105 | -0.1% |
| Cumulative Contribution | 29.8% |
Market Drivers
11/30/2025 to 5/31/2026| Return | Correlation | |
|---|---|---|
| CBOE | 29.8% | |
| Market (SPY) | 11.3% | -7.7% |
| Sector (XLF) | -2.4% | -0.4% |
Fundamental Drivers
The 47.1% change in CBOE stock from 5/31/2025 to 5/31/2026 was primarily driven by a 38.5% change in the company's Net Income Margin (%).| (LTM values as of) | 5312025 | 5312026 | Change |
|---|---|---|---|
| Stock Price ($) | 226.75 | 333.56 | 47.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,332 | 4,792 | 10.6% |
| Net Income Margin (%) | 18.6% | 25.8% | 38.5% |
| P/E Multiple | 29.5 | 28.3 | -4.0% |
| Shares Outstanding (Mil) | 105 | 105 | 0.0% |
| Cumulative Contribution | 47.1% |
Market Drivers
5/31/2025 to 5/31/2026| Return | Correlation | |
|---|---|---|
| CBOE | 47.1% | |
| Market (SPY) | 29.8% | -9.6% |
| Sector (XLF) | 2.8% | 2.9% |
Fundamental Drivers
The 160.8% change in CBOE stock from 5/31/2023 to 5/31/2026 was primarily driven by a 242.6% change in the company's Net Income Margin (%).| (LTM values as of) | 5312023 | 5312026 | Change |
|---|---|---|---|
| Stock Price ($) | 127.88 | 333.56 | 160.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,972 | 4,792 | 20.6% |
| Net Income Margin (%) | 7.5% | 25.8% | 242.6% |
| P/E Multiple | 45.3 | 28.3 | -37.6% |
| Shares Outstanding (Mil) | 106 | 105 | 1.1% |
| Cumulative Contribution | 160.8% |
Market Drivers
5/31/2023 to 5/31/2026| Return | Correlation | |
|---|---|---|
| CBOE | 160.8% | |
| Market (SPY) | 88.1% | -12.3% |
| Sector (XLF) | 70.5% | 1.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| CBOE Return | 42% | -2% | 44% | 11% | 30% | 37% | 298% |
| Peers Return | 38% | -23% | 26% | 21% | 14% | -8% | 70% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 101% |
Monthly Win Rates [3] | |||||||
| CBOE Win Rate | 58% | 33% | 75% | 50% | 75% | 80% | |
| Peers Win Rate | 62% | 37% | 62% | 55% | 65% | 36% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | |
Max Drawdowns [4] | |||||||
| CBOE Max Drawdown | -13% | -19% | -8% | -14% | -9% | -10% | |
| Peers Max Drawdown | -10% | -35% | -17% | -10% | -19% | -20% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: CME, ICE, NDAQ, SPGI, MCO. See CBOE Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 5/29/2026 (YTD)
How Low Can It Go
| Event | CBOE | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -18.1% | -24.5% |
| % Gain to Breakeven | 22.0% | 32.4% |
| Time to Breakeven | 167 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -36.8% | -33.7% |
| % Gain to Breakeven | 58.3% | 50.9% |
| Time to Breakeven | 460 days | 140 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -19.7% | -15.4% |
| % Gain to Breakeven | 24.6% | 18.2% |
| Time to Breakeven | 884 days | 125 days |
In The Past
Cboe Global Markets's stock fell -2.3% during the 2025 US Tariff Shock. Such a loss loss requires a 2.4% gain to breakeven.
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| Event | CBOE | S&P 500 |
|---|---|---|
| 2020 COVID-19 Crash | ||
| % Loss | -36.8% | -33.7% |
| % Gain to Breakeven | 58.3% | 50.9% |
| Time to Breakeven | 460 days | 140 days |
In The Past
Cboe Global Markets's stock fell -2.3% during the 2025 US Tariff Shock. Such a loss loss requires a 2.4% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Cboe Global Markets (CBOE)
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The Nasdaq for global options, futures, and FX trading.
Like CME Group, but also operating major stock exchanges worldwide.
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- Options Trading: Facilitates the trading of listed options, including those on market indices.
- Equities Trading: Operates exchanges for trading U.S., Canadian, and pan-European listed equities.
- Futures Trading: Provides platforms for trading various futures contracts.
- Exchange-Traded Products (ETP) Trading: Offers transaction services for a wide range of exchange-traded products.
- Foreign Exchange (FX) Trading: Delivers institutional foreign exchange trading and non-deliverable forward FX transaction services.
- Listing Services: Provides services for listing exchange-traded products, equities, and other financial instruments.
- Clearing Services: Offers clearing services for various traded instruments, particularly in European and Asia Pacific markets.
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Cboe Global Markets (CBOE) operates as a global exchange. Its primary customers are not individual retail investors but rather a broad range of financial institutions and market participants who utilize its trading platforms and listing services. Due to the nature of an exchange business, Cboe serves a vast network of participants rather than having a few named "major customers" in the traditional sense.
The major categories of customers Cboe serves are:
- Broker-Dealer Firms and Financial Institutions: These entities connect investors (both institutional and retail) to Cboe's markets, executing trades in options, equities, futures, and foreign exchange. They pay transaction fees, market data fees, and other service charges for accessing Cboe's platforms.
- Professional Trading Firms and Market Makers: These firms actively participate on Cboe's exchanges to provide liquidity and engage in proprietary trading across various asset classes. Their high trading volumes contribute significantly to Cboe's transaction-based revenues.
- Exchange-Traded Product (ETP) Issuers: Companies that create and offer exchange-traded products, such as ETPs, exchange-traded commodities, and international depository receipts, list these products on Cboe's exchanges and pay listing fees and associated service charges.
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- MSCI Inc. (MSCI)
- DJI Opco, LLC
- FTSE International Limited
- Frank Russell Company
- S&P Dow Jones Indices, LLC
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Craig Donohue
Chief Executive Officer and President
Craig Donohue became the Chief Executive Officer of Cboe Global Markets in May 2025, also assuming the title of President upon the departure of David Howson in August 2025. Prior to joining Cboe, Donohue served as Chairman of the Board of Directors at OCC (Options Clearing Corporation) from January 2024, after being Executive Chairman and CEO of OCC for three years starting in 2016. He initially joined OCC as Executive Chairman in January 2014. Before his time at OCC, Donohue was the Chief Executive Officer of CME Group from January 2004 until May 2012. During his tenure at CME Group, he spearheaded mergers and acquisitions totaling over $20 billion, including the significant merger with the Chicago Board of Trade in 2007 and the acquisition of both the New York Mercantile Exchange and the Commodity Exchange Inc. in 2008.
Jill Griebenow
Executive Vice President, Chief Financial Officer
Jill Griebenow is the Executive Vice President and Chief Financial Officer at Cboe Global Markets, a role she assumed effective July 10, 2023. In this position, she is responsible for all financial activities of the company, encompassing accounting, finance, tax, investor relations, treasury, and capital markets. Prior to her appointment as CFO, Griebenow served as the Senior Vice President, Chief Accounting Officer at Cboe since 2018. She also held the position of Chief Financial Officer of Cboe Europe. Griebenow began her career at Cboe in 2011 as a Financial Reporting Specialist. Before joining Cboe, she was a Senior Manager at Ernst & Young (EY), where her work focused on auditing public companies within the asset management and financial services sectors. She has over two decades of experience in the financial and public accounting industries.
Scott Johnston
Executive Vice President, Chief Operating Officer
Scott Johnston was appointed Executive Vice President, Chief Operating Officer of Cboe Global Markets, effective March 6, 2026. He assumed this role after Chris Isaacson retired.
Patrick Sexton
Executive Vice President, General Counsel and Corporate Secretary
Patrick Sexton has served as Executive Vice President, General Counsel and Corporate Secretary at Cboe Global Markets since March 1, 2018. Before this, he was the Deputy General Counsel of the company's subsidiary, Cboe Exchange, Inc., a position he held since July 2013. Sexton has accumulated extensive experience as legal, regulatory, and compliance counsel since joining Cboe in 1997. He played a key role in Cboe's demutualization in 2010 and the acquisition of Bats Global Markets in 2017.
Prashant Bhatia
Executive Vice President, Head of Enterprise Strategy & Corporate Development
Prashant Bhatia serves as the Executive Vice President, Head of Enterprise Strategy & Corporate Development at Cboe Global Markets. In this capacity, he collaborates with the executive leadership team to formulate and implement the company's enterprise business strategy, focusing on identifying opportunities for growth to enhance Cboe's market leadership. Bhatia brings over three decades of experience in the financial services industry, having previously held positions as a Finance Manager at Morgan Stanley & Co. and a Senior Associate at Coopers & Lybrand L.L.P.
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The key risks to Cboe Global Markets (CBOE) include intense market competition, the evolving regulatory landscape, and the potential loss of exclusive rights to its key proprietary products.
- Market Competition and Off-Exchange Trading: Cboe operates within a highly competitive financial exchange industry, facing rivalry from other established exchanges, emerging fintech firms, and the increasing prevalence of off-exchange trading. This intense competition can lead to a decline in market share, as seen in its U.S. Equities segment, and exert downward pressure on pricing and profitability. The existence of "copycat OTC options" further exemplifies this risk, as these off-exchange, privately-negotiated agreements can divert liquidity away from Cboe's listed markets.
- Regulatory Changes and Scrutiny: As an exchange operator, Cboe is subject to a complex and dynamic regulatory environment. Changes in regulations or increased scrutiny can significantly impact its business model and revenue streams. Specific concerns include potential regulatory caps on Zero-Days-to-Expiration (0DTE) options, which have been a significant driver of trading volumes, and the European Union's ban on Payment for Order Flow (PFOF) which could disrupt retail liquidity in its European operations. Additionally, Cboe's attempts to define what constitutes a "facility" of the exchange have triggered debate regarding regulatory oversight.
- Loss of Exclusive Rights to Key Proprietary Products: A substantial portion of Cboe's earnings is derived from its proprietary products, such as S&P 500 Index (SPX) options and Cboe Volatility Index (VIX) options. There is a specific risk that Cboe may not be able to maintain its exclusive trading rights for S&P 500 options. Its current agreement with S&P Global is in place through 2032, but renewal is not guaranteed, and S&P Global could potentially seek less favorable terms, which would negatively impact Cboe's future revenue.
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Addressable Market Sizes for Cboe Global Markets' Main Products and Services
-
Options Segment:
- Global listed options trading volume: 108.2 billion contracts in 2023.
- U.S. listed options trading volume: 15.2 billion contracts in 2025.
- U.S. index options average daily volume: 5 million contracts in 2025.
-
North American Equities Segment:
- U.S. stock market capitalization: $60.1 trillion as of February 2025.
- Canadian equities market capitalization: $2.75 trillion USD in 2023.
- Global Exchange-Traded Products (ETP) assets under management (AUM): $19.85 trillion at the end of December 2025.
-
Futures Segment:
- Global listed futures trading volume: 29.1 billion contracts in 2023.
- Global futures trading service market size: $5.2 billion in 2023, projected to reach $10.8 billion by 2032.
-
Europe and Asia Pacific Segment:
- European stock markets market capitalization: Approximately €22.71 trillion in 2025 (approximately $24.75 trillion USD, using an approximate conversion rate of 1 EUR = 1.09 USD).
- Asia Pacific public equity market capitalization: $34.4 trillion in 2024.
- Specific current European ETP AUM: Null
- Specific current Asia Pacific ETP AUM: Null
- Specific European or Asia Pacific derivatives market size (notional/volume): Null (global listed options and futures figures apply, see Options and Futures segments above).
-
Global FX Segment:
- Global daily foreign exchange (FX) turnover: Over $7.5 trillion per day in 2022.
- Global Over-The-Counter (OTC) FX derivatives notional outstanding: $155 trillion in June 2025.
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Cboe Global Markets (CBOE) is expected to drive future revenue growth over the next 2-3 years through several strategic initiatives and strong performance in key business areas.1. Expansion and Innovation in Derivatives Trading: Cboe anticipates continued growth in its Derivatives segment, particularly through proprietary index options such as SPX and VIX, and the increasing adoption of Zero-Days-to-Expiration (0DTE) options. This segment has shown significant revenue increases and strong trading volumes, with 0DTE options demonstrating a substantial rise in average daily volume.
2. Geographical Expansion and International Market Penetration: The company is actively pursuing a strategy of global expansion, focusing on increasing its footprint and market share in regions like Europe and Asia Pacific. Initiatives include expanding clearing services (e.g., into the German market via Cboe Clear Europe) and onboarding more brokers in the EMEA and APAC regions. The Europe and Asia Pacific segment has already shown record net revenue growth.
3. Growth of the Data Vantage Business: Cboe's Data Vantage segment, which encompasses market data, access solutions, indices, and risk and market analytics, is a consistent revenue driver. Growth in this area is largely fueled by strong demand for new units and new sales, indicating sustained interest in their comprehensive data offerings. Cboe targets mid-to-high single-digit organic net revenue growth for Data Vantage in 2026.
4. Strategic Product Innovation and Emerging Opportunities: Cboe is committed to enhancing its product suite and exploring new growth avenues. This includes continuously developing new derivatives offerings, such as S&P 500 Equal Weight Index (EWI) options, and actively exploring emerging opportunities in event and prediction markets, as well as digital asset derivatives like Bitcoin and Ether futures.
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Share Repurchases
- In August 2024, Cboe Global Markets authorized an additional $500 million for share repurchases, with $179.8 million remaining under existing authorizations as of July 31, 2024.
- In October 2023, the company authorized an additional $250 million for share repurchases, with approximately $139.8 million of availability remaining under existing authorizations as of June 30, 2023.
Share Issuance
- Cboe Global Markets has experienced a decline in shares outstanding over the last few years, with a 0.19% decline in 2025, a 0.85% decline in 2024, and a 0.47% decline in 2023, indicating net share repurchases.
Outbound Investments
- Cboe completed the acquisition of Eris Digital Holdings, LLC (ErisX) in May 2022, which provided the company with entry into digital asset spot and derivatives markets.
- In January 2021, Cboe completed its acquisition of BIDS Trading, a registered broker-dealer and operator of the largest block-trading ATS in the U.S., to expand its U.S. equities offerings.
- In 2020, Cboe acquired risk analytics provider Hanweck Associates and the portfolio management platform FT Options, which were subsequently integrated into its Risk and Market Analytics Group by April 2022.
Capital Expenditures
- Cboe Global Markets expects capital expenditures for fiscal year 2026 to be in the range of $73 million to $83 million.
- Actual capital expenditures were $74 million in 2025, $61 million in 2024, and $45 million in 2023.
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| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 04302026 | EEFT | Euronet Worldwide | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 04242026 | HOMB | Home BancShares | Insider | Insider Buys | Low D/EStrong Insider BuyingCompanies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | 1.5% | 1.5% | 0.0% |
| 03312026 | HBAN | Huntington Bancshares | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 7.1% | 7.1% | 0.0% |
| 03312026 | NP | Neptune Insurance | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 3.9% | 3.9% | 0.0% |
| 03272026 | JKHY | Jack Henry & Associates | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.3% | 0.3% | -4.0% |
| 04302021 | CBOE | Cboe Global Markets | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 27.4% | 9.9% | 0.0% |
| 10312020 | CBOE | Cboe Global Markets | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 29.5% | 65.0% | 0.0% |
Research & Analysis
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 303.55 |
| Mkt Cap | 82.0 |
| Rev LTM | 8,091 |
| Op Inc LTM | 3,981 |
| FCF LTM | 3,496 |
| FCF 3Y Avg | 3,108 |
| CFO LTM | 3,752 |
| CFO 3Y Avg | 3,333 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 8.0% |
| Rev Chg 3Y Avg | 10.2% |
| Rev Chg Q | 9.2% |
| QoQ Delta Rev Chg LTM | 2.3% |
| Op Inc Chg LTM | 17.5% |
| Op Inc Chg 3Y Avg | 17.2% |
| Op Mgn LTM | 41.3% |
| Op Mgn 3Y Avg | 38.8% |
| QoQ Delta Op Mgn LTM | 0.9% |
| CFO/Rev LTM | 38.8% |
| CFO/Rev 3Y Avg | 37.2% |
| FCF/Rev LTM | 35.1% |
| FCF/Rev 3Y Avg | 34.4% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 82.0 |
| P/S | 7.7 |
| P/Op Inc | 20.9 |
| P/EBIT | 18.9 |
| P/E | 26.9 |
| P/CFO | 22.1 |
| Total Yield | 4.8% |
| Dividend Yield | 1.0% |
| FCF Yield 3Y Avg | 4.2% |
| D/E | 0.1 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -0.3% |
| 3M Rtn | -4.2% |
| 6M Rtn | -2.7% |
| 12M Rtn | -3.2% |
| 3Y Rtn | 58.6% |
| 1M Excs Rtn | -7.8% |
| 3M Excs Rtn | -14.4% |
| 6M Excs Rtn | -13.6% |
| 12M Excs Rtn | -31.3% |
| 3Y Excs Rtn | -21.7% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Options | 2,003 | 1,940 | 1,823 | 1,505 | 1,330 |
| North American Equities | 1,547 | 1,353 | 1,682 | 1,570 | 1,790 |
| Europe and Asia Pacific | 324 | 281 | 265 | 240 | 140 |
| Futures | 141 | 129 | 120 | 121 | 109 |
| Global FX | 80 | 75 | 69 | 58 | 58 |
| Corporate Items and Eliminations | 0 | 0 | 0 | 0 | |
| Digital | -0 | -4 | 0 | ||
| Total | 4,094 | 3,774 | 3,958 | 3,495 | 3,427 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Options | 878 | 851 | 740 | 538 | 430 |
| North American Equities | 169 | 118 | 147 | 156 | 160 |
| Futures | 99 | 86 | 55 | 66 | 54 |
| Europe and Asia Pacific | 42 | 33 | 38 | 56 | 34 |
| Global FX | 33 | 25 | 9 | 3 | 6 |
| Corporate Items and Eliminations | -10 | -8 | -8 | -13 | -21 |
| Digital | -112 | -47 | -491 | ||
| Total | 1,098 | 1,058 | 490 | 806 | 662 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Options | 581 | 576 | |||
| North American Equities | 149 | 105 | |||
| Futures | 70 | 53 | |||
| Global FX | 33 | 24 | |||
| Europe and Asia Pacific | 25 | 20 | |||
| Corporate Items and Eliminations | -14 | 18 | |||
| Digital | -79 | -34 | |||
| Total | 765 | 761 |
Price Behavior
| Market Price | $333.56 | |
| Market Cap ($ Bil) | 34.9 | |
| First Trading Date | 06/15/2010 | |
| Distance from 52W High | -8.8% | |
| 50 Days | 200 Days | |
| DMA Price | $315.76 | $270.47 |
| DMA Trend | up | up |
| Distance from DMA | 5.6% | 23.3% |
| 3M | 1YR | |
| Volatility | 33.2% | 23.5% |
| Downside Capture | -27.35 | -29.31 |
| Upside Capture | 23.05 | 25.43 |
| Correlation (SPY) | -5.5% | -8.8% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.00 | -0.26 | -0.12 | -0.16 | -0.19 | -0.18 |
| Up Beta | -0.57 | -0.65 | -0.44 | -0.49 | -0.34 | -0.24 |
| Down Beta | -0.84 | -0.13 | -0.05 | -0.24 | -0.52 | -0.23 |
| Up Capture | 109% | 57% | 21% | 29% | 18% | 2% |
| Bmk +ve Days | 13 | 28 | 36 | 67 | 141 | 432 |
| Stock +ve Days | 11 | 24 | 32 | 68 | 134 | 405 |
| Down Capture | -81% | -128% | -30% | -45% | -42% | -107% |
| Bmk -ve Days | 7 | 13 | 27 | 57 | 109 | 318 |
| Stock -ve Days | 9 | 17 | 31 | 56 | 116 | 343 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CBOE | |
|---|---|---|---|---|
| CBOE | 49.8% | 23.4% | 1.66 | - |
| Sector ETF (XLF) | 3.5% | 14.4% | 0.02 | 3.0% |
| Equity (SPY) | 30.3% | 11.8% | 1.94 | -9.5% |
| Gold (GLD) | 37.5% | 26.7% | 1.17 | -3.5% |
| Commodities (DBC) | 39.6% | 18.8% | 1.63 | 4.9% |
| Real Estate (VNQ) | 12.5% | 13.1% | 0.64 | 13.6% |
| Bitcoin (BTCUSD) | -32.0% | 41.6% | -0.82 | -4.4% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CBOE | |
|---|---|---|---|---|
| CBOE | 26.3% | 22.3% | 1.00 | - |
| Sector ETF (XLF) | 8.4% | 18.6% | 0.34 | 20.1% |
| Equity (SPY) | 14.3% | 17.0% | 0.66 | 14.8% |
| Gold (GLD) | 18.8% | 18.0% | 0.85 | 2.4% |
| Commodities (DBC) | 10.2% | 19.4% | 0.41 | 4.5% |
| Real Estate (VNQ) | 3.4% | 18.8% | 0.08 | 22.3% |
| Bitcoin (BTCUSD) | 14.5% | 54.6% | 0.46 | 7.2% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CBOE | |
|---|---|---|---|---|
| CBOE | 19.7% | 24.9% | 0.74 | - |
| Sector ETF (XLF) | 12.8% | 22.1% | 0.53 | 36.6% |
| Equity (SPY) | 15.9% | 17.9% | 0.76 | 32.2% |
| Gold (GLD) | 13.3% | 16.0% | 0.69 | 3.0% |
| Commodities (DBC) | 7.3% | 17.9% | 0.33 | 12.0% |
| Real Estate (VNQ) | 5.7% | 20.7% | 0.24 | 34.7% |
| Bitcoin (BTCUSD) | 66.9% | 66.9% | 1.06 | 7.0% |
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Returns Analyses
Earnings Returns History
Updated N/A/N/A/N/A| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/1/2026 | 9.0% | 12.8% | |
| 2/6/2026 | -0.7% | -1.7% | 9.0% |
| 10/31/2025 | 3.7% | 6.7% | 7.7% |
| 8/1/2025 | 2.8% | 3.5% | -1.8% |
| 5/2/2025 | 2.3% | 3.1% | 4.8% |
| 2/7/2025 | 2.0% | 0.6% | 6.1% |
| 11/1/2024 | -1.7% | -6.5% | -0.5% |
| 8/2/2024 | 4.3% | 9.9% | 10.9% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 16 | 17 | 18 |
| # Negative | 9 | 8 | 6 |
| Median Positive | 2.8% | 4.0% | 6.9% |
| Median Negative | -1.7% | -3.3% | -1.5% |
| Max Positive | 9.0% | 12.8% | 15.8% |
| Max Negative | -5.8% | -7.5% | -4.2% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/01/2026 | 10-Q |
| 12/31/2025 | 02/20/2026 | 10-K |
| 09/30/2025 | 10/31/2025 | 10-Q |
| 06/30/2025 | 08/01/2025 | 10-Q |
| 03/31/2025 | 05/02/2025 | 10-Q |
| 12/31/2024 | 02/21/2025 | 10-K |
| 09/30/2024 | 11/01/2024 | 10-Q |
| 06/30/2024 | 08/02/2024 | 10-Q |
| 03/31/2024 | 05/03/2024 | 10-Q |
| 12/31/2023 | 02/16/2024 | 10-K |
| 09/30/2023 | 11/03/2023 | 10-Q |
| 06/30/2023 | 08/04/2023 | 10-Q |
| 03/31/2023 | 05/05/2023 | 10-Q |
| 12/31/2022 | 02/17/2023 | 10-K |
| 09/30/2022 | 11/04/2022 | 10-Q |
| 06/30/2022 | 07/29/2022 | 10-Q |
Recent Forward Guidance
Updated 5/31/2026Latest: Q1 2026 Earnings Reported 5/1/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Organic Total Net Revenue Growth | 10.0% | 12.5% | 15.0% | 150.0% | 7.5% | Raised | Guidance: 5.0% for 2026 |
| 2026 Data Vantage Organic Net Revenue Growth | 10.0% | 42.9% | 3.0% | Raised | Guidance: 7.0% for 2026 | ||
| 2026 Adjusted Operating Expenses | 838.00 Mil | 845.50 Mil | 853.00 Mil | -3.0% | Lowered | Guidance: 871.50 Mil for 2026 | |
| 2026 Depreciation and Amortization Expense | 56.00 Mil | 58.00 Mil | 60.00 Mil | 0 | Affirmed | Guidance: 58.00 Mil for 2026 | |
| 2026 Effective Tax Rate on Adjusted Earnings | 27.5% | 28.5% | 29.5% | 0 | 0 | Affirmed | Guidance: 28.5% for 2026 |
| 2026 Capital Expenditures | 73.00 Mil | 78.00 Mil | 83.00 Mil | 0 | Affirmed | Guidance: 78.00 Mil for 2026 | |
Prior: Q4 2025 Earnings Reported 2/6/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Organic Total Net Revenue Growth | 5.0% | -60.0% | -7.5% | Lower New | Actual: 12.5% for 2025 | ||
| 2026 Data Vantage Organic Net Revenue Growth | 7.0% | -26.3% | -2.5% | Lower New | Actual: 9.5% for 2025 | ||
| 2026 Adjusted Operating Expenses | 864.00 Mil | 871.50 Mil | 879.00 Mil | 4.4% | Higher New | Actual: 834.50 Mil for 2025 | |
| 2026 Depreciation and Amortization Expense | 56.00 Mil | 58.00 Mil | 60.00 Mil | 11.5% | Higher New | Actual: 52.00 Mil for 2025 | |
| 2026 Effective Tax Rate on Adjusted Earnings | 27.5% | 28.5% | 29.5% | -3.4% | -1.0% | Lower New | Actual: 29.5% for 2025 |
| 2026 Capital Expenditures | 73.00 Mil | 78.00 Mil | 83.00 Mil | 0 | Same New | Actual: 78.00 Mil for 2025 | |
Insider Activity
Updated 5/20/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Froetscher, Janet P | Direct | Sell | 5202026 | 358.09 | 1,223 | 437,944 | 4,944,149 | Form | |
| 2 | Wilkinson, Allen | SVP, CHIEF ACCOUNTING OFFICER | Direct | Sell | 2252026 | 292.79 | 248 | 72,612 | 120,044 | Form |
| 3 | Matturri, Alexander JR | Direct | Sell | 2202026 | 285.36 | 1,500 | 428,040 | 1,358,599 | Form | |
| 4 | Fitzpatrick, Edward J | Direct | Sell | 2202026 | 285.87 | 3,947 | 1,128,329 | 3,693,726 | Form | |
| 5 | Isaacson, Christopher A | EVP, COO | Direct | Sell | 9042025 | 236.66 | 5,000 | 1,183,300 | 8,893,683 | Form |
CBOE Trade Sentinel
MARKET WEIGHT (Score 5-6)
CONVICTION RATIONALE
Cboe is a high-quality business with a widening moat in its core profit engine. However, the current valuation appears fair, and the risk/reward profile is negatively skewed due to a significant regulatory overhang on its primary growth driver (0DTE options). The combination of a world-class business and a poor near-term payoff profile warrants a Market Weight rating.
STOCK ARCHETYPE
Type B: 'Quality Compounder / Stalwart'Cboe fits the 'Quality Compounder' archetype due to its durable competitive moat via exclusive licenses (SPX, VIX), strong pricing power in its core products, high and consistent margins (adjusted operating margin of 67.1%), and efficient capital allocation. Its growth is becoming more stable and predictable, driven by a mix-shift to higher-quality revenue streams rather than pure hyper-growth.
INVESTMENT THESIS
The primary driver for Cboe is the accelerating adoption of its exclusive, high-margin S&P 500 (SPX) and VIX index options, particularly short-dated (0DTE) variants. This favorable product mix-shift is increasing the average revenue per contract (RPC), leading to margin expansion and enhancing the quality and predictability of earnings, justifying a re-rating from a cyclical exchange to a financial technology stalwart.
- Options net revenue grew 34% year-over-year in Q4 2025, significantly outpacing other segments.
- Total options Revenue Per Contract (RPC) increased 13% in Q4 2025, demonstrating strong pricing power driven by the product mix.
- Average Daily Volume (ADV) for proprietary index options grew 35% in Q4 2025, with SPX 0DTE ADV growing 66% YoY.
- The core derivatives franchise represents 64% of Q4 2025 revenue and operates at a company-level adjusted EBITDA margin of 69.2%
PRIMARY RISK
The primary risk to the thesis is potential regulatory action from the SEC targeting the structure of the options market, particularly the explosive growth of zero-day-to-expiry (0DTE) products. Increased scrutiny following an SEC roundtable in April 2026 could lead to new rules that restrict 0DTE products, alter fee structures, or increase compliance costs, directly threatening Cboe's most significant growth and profit driver.
- The SEC hosted a roundtable on April 16, 2026, specifically to discuss options market structure and competition, indicating heightened regulatory focus.
- 0DTE options accounted for a significant 59% of total SPX options volume in 2025, highlighting the concentration of risk in this specific product set.
| KPI | Threshold | Rationale |
|---|---|---|
| Index Options ADV Growth YoY | >20% YoY | This is the primary indicator of the Alpha Driver's health. Sustained growth well above the overall market confirms the mix-shift thesis. |
| Total Options Revenue Per Contract (RPC) Growth YoY | >10% YoY | Measures the effectiveness of the mix-shift to higher-fee products and overall pricing power. Deceleration here would be a key warning sign. |
| U.S. Options Market Share (Total) | Stable >29% | While share loss in commoditized products is expected, a rapid decline below current levels could signal more aggressive and successful competition than anticipated, potentially spilling over into core products. |
0DTE Growth Engine vs. Regulatory Cannon
BULL VIEW
Continued adoption of high-margin SPX/VIX products will drive durable earnings growth and margin expansion. The regulatory threat is manageable and will not derail the core thesis.
CORE TENSION
The market is torn between Cboe's explosive, high-margin growth from proprietary 0DTE options and the significant risk of an SEC crackdown targeting these same products.
PREVAILING SENTIMENT
Q4 2025 proprietary index options ADV grew 35% and total options RPC increased 13%, confirming the alpha driver is currently overwhelming the anti-alpha risk. [cite: THESIS_MAP]
BEAR VIEW
SEC action following its April 2026 roundtable will restrict 0DTE options, directly attacking Cboe's primary profit driver, causing revenue deceleration and margin compression.
| Timeline | Event & Metric To Watch |
|---|---|
Ongoing; Post-April 2026 Roundtable | SEC Rule Proposal on Options Market Structure Watch: Headline risk: Watch for any formal rule proposal from the SEC that specifically mentions '0DTE options', 'payment for order flow', or new 'best-execution' requirements for options. |
May 1, 2026 | Q1 2026 Earnings Call Watch: Monitor for continued strength in Total Options RPC. Needs to exceed the +13% YoY baseline set in Q4 2025 to validate the mix-shift thesis is still accelerating. |
Late July / Early August 2026 | Q2 2026 Earnings Call Watch: Index Options ADV growth YoY. Watch if growth remains above the >20% threshold, particularly the trend in SPX 0DTE volumes after a record Q1. |
Ongoing (via monthly reports) | Ongoing Competitive Pressure in Multi-Listed Options Watch: Track consolidated U.S. options market share in monthly volume reports. A consistent drop below the ~29% level reported in Q4 would be a negative signal. |
| Date | Event | Stock Impact |
|---|---|---|
Oct 31, 2025 | Q3 2025 Earnings Report Details: Reported record quarterly net revenue of $605.5M (+14% YoY) and record adjusted EPS of $2.67 (+20% YoY), beating estimates and raising full-year 2025 guidance. | Flat (0.5%) $244.35 -> $245.62 |
Jan 6, 2026 | Full Year 2025 Volumes Released Details: Reported a sixth consecutive record year for total options ADV (18.4 million contracts). Proprietary index options ADV was a record 4.9 million contracts for the full year. | Muted (-0.8%) $251.48 -> $249.47 |
Jan 20, 2026 | Auditor Lawsuit Disclosure Details: A former auditor filed a lawsuit alleging accounting irregularities. An external investigation found no wrongdoing, but the news introduced a new operational risk factor. | Muted (-0.6%) $272.87 -> $271.25 |
Feb 6, 2026 | Q4 2025 Earnings & FY26 Guidance Details: Reported record Q4 revenue (+28% YoY) and adj. EPS of $3.06, beating estimates. Guided FY26 to 'mid-single-digit' organic revenue growth, a significant deceleration from 2025. | Muted (-0.7%) $274.60 -> $272.68 |
Apr 6, 2026 | March 2026 Trading Volumes Released Details: Cboe reported record monthly SPX options ADV of 5.4 million contracts and record quarterly SPX 0DTE ADV of 3.0 million, confirming continued momentum in its core products. | Rose significantly by 2.1% $289.95 -> $296.06 |
Apr 16, 2026 | SEC Options Market Structure Roundtable Details: The SEC hosted a roundtable to discuss options market structure and competition. The initial market reaction was muted, suggesting no immediate investor panic over regulatory changes. | Modest 1.4% gain $304.99 -> $309.38 |
Position Sizing
7%-10%
AGGRESSIVE
Stock trades with moderate, though spiking, volatility. The combination of Bullish sentiment, a Widening Moat, and a Fair valuation meets the criteria for a 'Fat Pitch' aggressive allocation.
Diversification Alternatives
CME
INDUSTRYOffers a similar high-quality derivatives exchange model but its profit engine (interest rate futures) is not exposed to the specific SEC 0DTE regulatory risk facing Cboe.
IBKR
SECTORProvides exposure to rising global trading volumes but with a different risk profile (brokerage vs. exchange regulation). Less direct risk from an options market structure overhaul.
Cboe is evolving from a transaction-volume-dependent U.S. exchange into a global, multi-asset class market operator with a growing share of high-margin, recurring revenue from proprietary data and access solutions.
Filter all news through the lens of growth in high-margin, proprietary products (SPX, VIX) and the recurring Data and Access Solutions segment, as these drive the re-rating from a cyclical exchange to a financial technology leader.
Sustained double-digit growth in Data Vantage revenue; market share gains in U.S. Options, particularly in exclusive SPX and VIX products; successful launch and adoption of new derivatives products; expansion into new geographies like Asia-Pacific showing volume growth.
Sustained market share loss in U.S. equities or options to competitors like Nasdaq or ICE; significant fee compression on transaction-based businesses; regulatory changes that threaten exclusive index licensing or alter market structure; a prolonged downturn in overall market trading volumes.
Month-to-month fluctuations in total market trading volumes — expected cyclicality; minor changes in U.S. cash equities market share — this is a highly competitive segment and not the core profit driver; announcements of minor technology upgrades — these are routine for exchanges.
Repricing Catalyst
The primary catalyst is the accelerating growth and adoption of proprietary index options, specifically S&P 500 (SPX) and VIX options, including their zero-day-to-expiry (0DTE) variants. This shift increases Cboe's revenue per contract and entrenches its market position due to exclusive licensing, driving higher-margin, less-cyclical revenue streams.
Index & Multi-Listed Options Trading
$1.7B TTM (64% of Total) · 69% MarginWhat It Is
Exclusive options on the S&P 500 Index (SPX) and Cboe Volatility Index (VIX); Multi-listed options on individual equities and Exchange-Traded Products (ETPs).
Who Pays & How
Institutional investors (hedge funds, asset managers) and market-making firms (e.g., Citadel Securities, Susquehanna) pay transaction fees to hedge market exposure and speculate on volatility. Cboe's exclusive licenses for SPX and VIX create a competitive moat, as these are the benchmark products for U.S. equity exposure and volatility.
Competition
Cash Equities & FX Trading (North America, Europe, APAC)
$0.7B TTM (27% of Total) · 69% MarginWhat It Is
Operation of 4 U.S. equities exchanges (BZX, BYX, EDGX, EDGA), Cboe Europe, Cboe Australia, and a Global FX trading venue.
Who Pays & How
High-frequency traders, broker-dealers, and institutional investors pay transaction fees (net capture) for executing stock and FX trades. They choose Cboe for its high-speed technology platform (acquired from Bats) and deep liquidity pools, particularly in Europe where it has the largest market share.
Competition
Futures & Data/Access Solutions
$0.3B TTM (9% of Total) · 69% MarginWhat It Is
Futures contracts on the VIX index; Market data feeds, analytics platforms, and access/capacity services for co-location. This revenue is reported across other segments but is functionally distinct.
Who Pays & How
Trading firms and data vendors pay recurring subscription fees for access to real-time market data and for physical proximity (co-location) to the exchange's matching engines to reduce latency. This revenue is highly stable and high-margin.
Competition
Industry Resources
| Financials Resources |
| Federal Reserve Economic Data |
| Federal Reserve |
| FDIC Data |
| American Banker |
| The Banker |
| Banking Technology |
| Financial Exchanges & Data Resources |
| WatersTechnology |
| TabbFORUM |
| Mondovisione |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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