Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

CBOE Holdings, Inc (CBOE): Betting on Options

As previously stated, the margins on options commissions are significantly higher than that of equity trades, thus E*Trade will benefit greatly from an increasing number of customers trading options.  It should also benefit from a recovering housing market, a segment which has weighed on both earnings and shares since the housing bubble.

E*Trade’s ugly portfolio of housing assets has started to improve as a result of decreasing charge offs and pay downs. Going forward, the company may benefit, once again, by offering home loans. Consumer credit and confidence has improved and demand for homes is starting to ramp up.

Wrap up

As a result of strong partnerships and growing interest in the options market, CBOE Holdings, Inc (NASDAQ:CBOE) is in a great position to drive higher revenue and profits. But if you’re looking for a more diversified play, you might consider one of the brokerages that dabbles in options volume.  Ultimately, CBOE Holdings could be considered a solid play on options, without an expiration date.


Nathaniel Matherson has no position in any stocks mentioned. The Motley Fool recommends TD Ameritrade.

The article Betting on Options originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.