Back to top

CBOE Holdings' (CBOE) August Average Daily Volume Surges

Read MoreHide Full Article

CBOE Holdings, Inc. (CBOE - Free Report) recently announced that the average daily volume (ADV) for August soared nearly 33% year over year to 7.4 million contracts. The month of August had 23 trading days in total.

Total contracts for August 2017 were 171.0 million, up about 33% year over year. Of this, options contracts improved 30.7% to 161.9 million, while futures contracts skyrocketed 92.3% to 9.2 million. Options ADV was 7.0 million and Futures ADV was 0.4 million.

CBOE Holdings have been witnessing a rise in trading volumes, largely supporting increasing transaction fees (accounted for 72% of total operating revenue in 2016) and in turn, boosting revenue growth.

We believe this Zacks Rank #3 (Hold) options exchange will be able to retain the revenue momentum in the coming quarters, backed by a strong market position, global reach, prudent acquisitions and a robust portfolio of proprietary products. You can see the complete list of today’s Zacks #1 Rank stocks here

Subsequently, ADV of the U.S. Equities Matched came up with a figure of 1.2 billion shares in August, down 10.5% from the year-ago month. While the European Equities Matched reflected a slip of 0.1% year over year to €8.0 billion. Plus, the Global FX Matched climbed 19.6% to $27.1 billion.

Shares of CBOE Holdings have significantly outperformed the industry, year to date. While the CBOE Holdings’ shares have rallied 40.4%, the industry registered a gain of about 16%. We expect both bottom-line and top-line growth, along with diversified product portfolio and expansion moves to fuel growth as well as drive the shares higher.



Recently, securities exchanges CME Group Inc. (CME - Free Report) , Intercontinental Exchange, Inc. (ICE - Free Report) and MarketAxess Holdings Ltd. (MKTX - Free Report) have also reported their respective August volumes. While Intercontinental Exchange’s average daily volume climbed 12% to 4.6 million contracts, MarketAxess has reported a trading volume of $114.3 billion this month. Plus, CME Group’s contracts per day averaged at 16 million, up 16% year over year.

One Simple Trading Idea

Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.

This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.

Learn more >>



More from Zacks Analyst Blog

You May Like