Why CBOE Global (CBOE) Deserves a Spot in Momentum-Driven Portfolios

In the ever-evolving landscape of financial markets, momentum-driven portfolios thrive on a delicate balance of technical strength, earnings resilience, and strategic foresight. CBOE Global (CBOE), the parent company of the Chicago Board Options Exchange, has emerged as a compelling candidate for such portfolios in 2025. By dissecting its technical indicators, earnings trajectory, and strategic positioning in the exchange-traded product (ETP) and derivatives markets, a compelling case emerges for investors seeking high-conviction momentum plays.

Technical Momentum: A Bullish Confluence of Indicators

CBOE's share price has surged to $246.43 as of August 2025, trading above critical moving averages—the 50-day ($238.63) and 200-day ($217.89) simple moving averages—as well as exponential counterparts. This alignment with long-term SMAs signals a robust upward trend, a hallmark of momentum stocks. The stock's position above key resistance levels, including the 250.09 Classic R1 pivot, further reinforces its bullish trajectory.

Oscillator metrics add to the case. The MACD (2.54) and Price Rate of Change (0.12) both signal buy signals, while the RSI (56.10) remains in neutral territory, indicating the stock is neither overbought nor oversold. The Williams %R (-52.55) suggests upward potential remains intact. Collectively, these indicators paint a picture of sustained momentum, supported by a “Strong Buy” technical consensus from 15 bullish signals.

Earnings Revisions: A Catalyst for Sustained Growth

CBOE's fundamentals are equally compelling. The Zacks Consensus Estimate projects a 11.5% year-over-year earnings per share (EPS) increase in 2025, building on a 11.4% compound annual growth rate (CAGR) over the past five years. This outpaces industry averages and underscores the company's ability to capitalize on market volatility.

Positive earnings surprises—averaging 1.9%—reflect strong execution and demand for CBOE's products. For instance, the second quarter of 2025 saw a 17% year-over-year rise in net revenue from derivatives markets, driven by record volumes in SPX and VIX options. These metrics highlight CBOE's capacity to convert market turbulence into revenue, a critical trait for momentum stocks.

Strategic Positioning: Dominance in ETPs and Derivatives

CBOE's strategic moves in the ETP and derivatives markets position it as a long-term winner. By mid-2025, the exchange surpassed 1,000 U.S. listed ETFs, securing its status as the second-largest ETF listing venue in the U.S. This growth is fueled by a 70% surge in ETF listings since 2023, with over 40% of new products being derivative-based. Outcome-based and premium-writing ETFs, which leverage CBOE's deep options expertise, now dominate the innovation landscape.

The company's foray into crypto-linked ETFs is another growth driver. Over 40 cryptocurrency ETFs are listed on Cboe U.S., including outcome-based Bitcoin ETFs that cater to institutional and retail demand for structured digital asset exposure. This aligns with the broader trend of crypto adoption and regulatory clarity, positioning CBOE to capture a growing segment of the market.

Operational efficiency further strengthens CBOE's appeal. The migration of all U.S. futures products to the Cboe Futures Exchange (CFE) in June 2025 reduced client capital requirements by 3-5% and operational costs by 5-7%. This consolidation enhances the exchange's competitiveness, enabling it to attract new listings and trading activity.

Investment Rationale: A Triple-Threaded Opportunity

For momentum-driven portfolios, CBOE offers a rare convergence of technical strength, earnings resilience, and strategic innovation. Its technical indicators suggest a continuation of the upward trend, while earnings growth and revisions validate the company's ability to deliver value. Meanwhile, its leadership in ETPs and derivatives ensures a durable competitive edge in a market increasingly reliant on structured products and alternative assets.

Investors should consider CBOE as a core holding in momentum portfolios, particularly as it navigates the transition to a more options-centric and crypto-integrated market. The stock's current valuation, supported by a 26.1% year-to-date gain and a strong balance sheet, offers a margin of safety while leaving room for further appreciation.

In conclusion, CBOE Global is not merely a beneficiary of short-term momentum but a strategic player in the evolution of global trading. Its ability to harness volatility, innovate in ETPs, and streamline operations makes it a standout candidate for investors seeking to align with the forces shaping the future of finance.