Updated
Updated · The Motley Fool · Jul 13
Cboe Extends Trading in 20 Mega-Cap Stock Options by 2 Hours
Updated
Updated · The Motley Fool · Jul 13

Cboe Extends Trading in 20 Mega-Cap Stock Options by 2 Hours

3 articles · Updated · The Motley Fool · Jul 13

Summary

  • Cboe plans to open trading in about 20 multi-exchange mega-cap stock options at 7:30 a.m. ET and keep it running until 4:15 p.m. ET on weekdays.
  • The earlier start covers the Magnificent Seven plus names such as Broadcom, Palantir and AMD, giving investors a way to trade key single-stock options before the broader market opens.
  • Cboe is betting the move will lift fee revenue as single-stock volatility stays elevated: its VIXEQ is around 50, while the broader VIX sits near 15.
  • That backdrop helped drive a record first quarter, with revenue up 29%, earnings up 54% and options revenue up 33%, underscoring why longer hours could cushion growth when broader market volatility cools.

Insights

As regulators target its core profit source, can Cboe's new ventures outpace the risks threatening its lucrative options business?
The market appears deceptively calm, so why is Cboe betting its future on hidden single-stock volatility that most indexes are missing?