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 $270.60 as of February 12th. CBOE’s trailing and forward P/E were 25.78 and 24.51 respectively according to Yahoo Finance.
Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange in the United States and internationally. CBOE delivered a strong 4Q25, posting record net revenue of $671 million, up 11% sequentially and 28% year-over-year, driven by broad-based strength across its business lines.
Derivatives Markets revenue rose 38% Y/Y to $386 million, fueled by robust options activity, while Cash and Spot Markets increased 27% Y/Y and Data Vantage grew 9% Y/Y. Expense growth remained controlled at 8% Y/Y, allowing operating margins to expand 620 basis points to 67.1%, with adjusted EPS reaching a record $3.06, up 45% Y/Y and ahead of consensus expectations. The quarter reflected powerful operating leverage as revenue outpaced costs and operating income exceeded Street estimates.
Momentum was particularly evident in the options franchise, which now represents 65% of total revenue, its highest mix in years. Nine of the ten highest SPX trading days on record occurred in 4Q25 or early 1Q26, VIX options set a third consecutive annual volume record, and renewed interest in Russell 2000 options drove volumes to decade highs. International expansion continues to gain traction, including retail broker additions in Korea and Taiwan, reinforcing structural growth in derivatives. Meanwhile, 90% of Data Vantage growth was volume-driven, with international clients now comprising 45% of data sales.
Strategically, CBOE is streamlining operations through the sale of its Australia and Canada businesses and the closure of CEDX, while investing in securities financing, prediction markets, and extended-hours trading. With mid-single-digit organic revenue guidance, disciplined expense growth, and new product catalysts, CBOE appears well positioned to sustain durable growth supported by healthy client demand and innovation.
Previously, we covered a bullish thesis on Cboe Global Markets, Inc. (CBOE) by Stock Picker’s Corner in March 2025, which highlighted the company’s ability to benefit from market volatility, rising retail options activity, and long-term earnings growth supported by structural industry tailwinds. CBOE’s stock price has appreciated by approximately 28.14% since our coverage. Collin Cook shares a similar view but emphasizes on record 4Q25 results and operating leverage.
Cboe Global Markets, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held CBOE at the end of the third quarter which was 49 in the previous quarter. While we acknowledge the risk and potential of CBOE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CBOE and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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