Cboe Global Markets, Inc. (CBOE): A Bull Case Theory

We came across a bullish thesis on Cboe Global Markets, Inc. on The Diversified Fins Analyst’s Substack by Collin Cook. In this article, we will summarize the bulls’ thesis on CBOE. Cboe Global Markets, Inc.'s share was trading at $255.28 as of December 1st. CBOE’s trailing and forward P/E were 27.76 and 26.60 respectively according to Yahoo Finance.

At the Barclays Financial Services Conference, CEO Craig Donohue outlined his strategic priorities for Cboe Global Markets (CBOE), emphasizing disciplined financial rigor and a focus on long-term growth drivers while pivoting away from non-core areas. Retail trading has remained resilient despite lower volatility, with increasing retail participation in options products. Donohue sees substantial room for retail growth, noting that platforms like Robinhood have only a small fraction of accounts authorized for options trading.

CBOE aims to expand its retail footprint through investor education and international partnerships, particularly in key Asia-Pacific markets. On the product side, Donohue believes there is still growth potential in 0DTE SPX contracts and that 0DTE single-stock options could complement existing offerings. He expressed cautious optimism about blockchain’s long-term applications but does not foresee widescale adoption soon. CBOE is also evaluating opportunities in prediction markets and exploring how its clearing infrastructure could support external participants. The regulatory backdrop is viewed as constructive, with policymakers encouraging innovation and competition.

International data revenues are expanding rapidly, up 45%, with most incremental growth from abroad, as CBOE develops new data products and strengthens relationships with retail brokers in Asia. Competitive dynamics remain intense across equities and options, with efforts underway to improve positioning in off-exchange equities and multi-list options without sacrificing margin. Donohue dismissed margin expansion as a standalone goal, instead emphasizing operational efficiency to reinvest in growth. Regarding M&A, CBOE remains disciplined—prioritizing larger, synergistic deals that enhance recurring revenues and align with core strategic objectives.

Previously we covered a bullish thesis on Cboe Global Markets, Inc. by Stock Picker’s Corner in March 2025, which highlighted the company’s resilience during volatility and growth in retail options trading. The company’s stock price has appreciated approximately by 20.89% since our coverage. This is because the thesis played out as trading volumes stayed strong. Collin Cook shares a similar but more strategic perspective emphasizing long-term growth priorities.

Cboe Global Markets, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held CBOE at the end of the second quarter which was 44 in the previous quarter. While we acknowledge the potential of CBOE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.