• CBOE Global Markets (CBOE) closed at a record high on Tuesday, extending the sharp rally seen in the past three sessions.
• CBOE in the past month has more than recovered from the sharp downward correction seen in early April.
• CBOE has been on a roll since announcing a new CEO on May 1 and releasing a positive earnings report on May 2.

Company Description:

CBOE Global Markets (CBOE) is one of the largest stock exchange operators by volume in the United States and a leading market globally for exchange-traded product (ETP) trading. CBOE offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, ETPS, global foreign exchange (FX) and multi-asset volatility products based on the CBOE Volatility Index ($VIX). CBOE’s trading venues include the largest options exchange in the United States and the largest stock exchange by value traded in Europe. CBOE has a market cap of $24 billion.

Today’s Context:

At Tuesday’s high of $234.28, CBOE remained slightly below the record high of $234.37 posted on April 3, but it did rally 0.71% to to a record-high close of $233.32.

CBOE has rallied sharply in the past several sessions since announcing a new CEO on May 1 and releasing a positive earnings report on May 2. CBOE named Craig Donohue, former CEO at CME Group (CME) and former chairman of Options Clearing Corp, as its new CEO. Mr. Donohue will take over his new role effective today (May 7). CBOE’s Q1 earnings report on May 2 was positive, with a 25% year-over-year increase in total revenue, adjusted EPS of $2.50 per share (above the analyst consensus of $2.36), and an adjusted operating margin of 66%, up from the year-earlier 61.6% and well above the consensus of 62.7%.

CBOE’s average daily options volume in March rose sharply by 28% to 18.8 million contracts as the exchange benefited from tariff-related volatility. CBOE is a play on expectations for continued volatility as the global trade war plays out and as the U.S. enters a possible recession, with GDP growth in Q1 already falling 0.3% (quarter-over-quarter annualized).

What I’m Watching: 

CBOE closed 0.71% higher at a new record high. I found today’s Chart of the Day by using Barchart’s New Highs & Lows page. I then viewed the stocks on the list with the Flipcharts feature. 

What Comes Next: 

The record closing high signals the possibility of further gains, although it always pays to watch for any temporary downside correction. A downside correction could be used as an entry point.

Key Technical Levels for CBOE: 

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

• The Parabolic Time/Price (50) trading system issued a “Buy” signal on April 29 and has been long since then.
• Barchart’s Overall Average Opinion is a 100% “Buy.”
• All the Barchart Opinion indicators were a “Buy” as of Tuesday, May 6.  
• CBOE has closed above its 200-day moving average since Jan. 7, 2025.

Analyst Ratings on CBOE:

• Wall Street analysts have a consensus rating of a “Hold” with a rating of 3.18 out of 5, and price targets between $187 and $249.
• Of 17 analysts, four have a “Buy” rating, 11 have a “Hold” rating, and two have a “Sell” rating.
• The average price target of $223.87 is 4.1% below Tuesday’s close of $233.32, suggesting that the stock is either overvalued or that analysts have yet to catch up with the stock’s potential.

Why It Matters: 

A breakout to a major new closing high can suggest that a stock has underlying strength to push even higher, although caution is always warranted.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.