The Reasons I Like Cboe Global Markets

Summary

• Cboe Global Markets is a leading provider of market infrastructure, with a strong position in options and stock exchange operations.
• The company benefits from volatility and has catalysts for future growth, such as pending approvals and new customers.
• CBOE has a solid capital allocation strategy, little downside risk, and generates recurring revenue from transaction fees.
• My valuation implies a 15% upside; therefore, I assign a buy.

Scott Olson

Investment Thesis

Cboe Global Markets (BATS:CBOE) offers investors the opportunity to own a casino-like business that does well in an economic slowdown, has strong demand, and has a positive outlook. The firm is the largest options exchange provider in the

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I'm not a qualified financial advisor or investing professional. My content and analysis are based on my opinion and are intended to be used and must be used for educational purposes only. No content or analysis constitutes or should be understood as constituting a recommendation to enter into any securities transactions or to engage in any investment strategy. It is very important to do your own analysis before making any investment based on your own personal circumstances. Readers should always seek the advice of a qualified professional before making any investment decision. Past performance is not indicative of future performance. A reader should not make personal financial, or investment decisions based solely upon this analysis.