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With volatility at multi-year highs and volumes at record highs, this quarter will be one of the most profitable in the history of Chicago Mercantile Exchange (NASDAQ:CME) and other online discount brokers. Indeed, volumes across all exchanges in the US last week were more than double the rate of the same week last year.

CME, a stock that dropped from $600 to $500 last week and bounced back on Friday, did not deserve the beating it took during the week. Aside from the record volumes, consider earnings and revenue growth of around 15%, operating margins of 60% and operating cash flow of over $500 million annually.

The stock regained its 200-day average on Friday and should be bought on dips.

CME 1-yr chart:

Full Disclosure: I do not own any CME but my position can change anytime without notice.

Source: Trading Volumes, Volatility Will Boost Chicago Merc