CBOE Holdings seems to be bottoming, and now the bulls are
optionMONSTER's Heat Seeker tracking system detected the purchase
of more than 2,000 January 23 calls for $0.55 and $0.60 against
open interest of 597 contracts. The activity pushed total option
activity in the stock to 12 times greater than average.
Despite running the largest option exchange in the country, CBOE is
a thinly traded name that usually sees volume of fewer than 400
contracts a day.
CBOE rose 0.04 percent to $22.43 yesterday and has lost more than
30 percent of its value since going public in June. Many companies
languish for year or so after going public as investors get up to
speed and as it gets added to indexes.
Yesterday's call buyer apparently thinks CBOE is ready to get
noticed and needs the shares to climb at least 5 percent for the
options to turn a profit. (See our Education section)
The stock also seems to be finding support around the same $22
level where it peaked in mid-September, which would suggest a
bullish trend is developing. The broader financial sector has been
strong recently, and rival Nasdaq OMX Group has been probing
CBOE's last earnings report on Nov. 4 beat forecasts as the company
generated more revenue per transaction. There also appears to be
significant short interest in the stock, which could help push it
The next earnings release is scheduled for the premarket on Feb.
(Chart courtesy of tradeMONSTER)
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