Josh Brown Highlights CBOE Global Markets as a Top Stock

CBOE Global Markets: A Top Performing Stock

• 📈 CBOE Global Markets is highlighted as a stock hitting new all-time highs and is considered one of the best returning stocks since its IPO in the summer of 2010.
• 🎯 It has outperformed the S&P 500, delivering approximately 850% returns versus the S&P's 640% since inception.

Drivers of CBOE's Success

• 📊 The company thrives on high trading volumes and volatility, with recent June trading reports showing unprecedented activity in options trading.
• 🚀 Volumes for S&P 500 options have surged to 3.7 million contracts, indicating strong market participation.
• 💡 CBOE benefits from traders actively using its products like the VIX and S&P 100 (OEEX) to make bets in both directions.

Investment Strategy and Risk Management

• ⚠️ Investors are advised to watch for an entry point, potentially on a "sell the news" reaction following the earnings report on August 1st, if the stock dips a few dollars.
• 🛡️ For risk management, a support level at $220 or the rising 200-day moving average is suggested.

Related Companies in the Trading Ecosystem

• 🔗 Other companies benefiting from the hot trading environment include Robin Hood and CME Group, which share a similar phenomenon with CBOE.
• 💰 Interactive Brokers (IBKR) is also mentioned as another strong performer, adding new accounts at a record rate and expected to continue its upward trend.
• 🌐 These companies act as gateways for both institutional and retail traders, who are actively participating in the market for hedging and speculating, leading to significant revenue for these firms.