Cboe Global Markets Stock Eyes Upside After Selloff

Cboe Global Markets Inc (NYSE:CBOE) recently sold off on news that prediction market platform Polymarket is seeking CFTC approval, sparking concerns about increased competition. The sharp pullback dragged shares back toward their March lows, though the stock found support at its 200-day moving average and +10% year-to-date level.

The options landscape remains constructive. Put support has emerged at the 270 strike, where the shares recently bounced, while max pain levels continue to trend higher through the summer months. Meanwhile, CBOE's 50-day buy-to-open put/call ratio sits in the 73rd percentile of readings from the past year, indicating options traders are more bearish than usual. This leaves ample room for pessimism to unwind should the stock resume its longer-term uptrend.

Our recommended call option has a leverage ratio of 6.5 and will double on a 16.7% rise in the underlying equity.