Trade of the Week: CBOE

Options Portfolio Manager – Investors Alley • Aug 22, 2021 at 1:35 AM EDT

Last week, for a brief period, there was some extreme options action in Cboe Global Markets (CBOE).

Last week, for a brief period, there was some extreme options action in Cboe Global Markets (CBOE). The options traded 12x the normal volume, with 91% of the volume in calls. That many calls trading tends to be a bullish signal. In this case, the action was due to a rumor that CME had made a bid to purchase CBOE for $16 billion. CBOE shares spiked on the news, and many traders rushed to buy calls. However, CME soon denied the acquisition rumors and CBOE's stock price plunged back to previous levels.

Video length 00:05:08

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