102.61 -1.78 (-1.73%) Buy

Are you evaluating investing in CBOE? Wait as it ranked worse than it's peers

13 min read

CBOE GLOBAL MARKETS, INC. ranked among the worst performers on Thursday. It lost -1.73% to close at 102.61. It is currently trading -25% below it's 52 week high of 137.16.

[Themes containing CBOE]

CBOE showed a down trend over the last 3 months. During this period CBOE lost -1.53% . It has been unusually choppy during this period. Long term investors are better off avoiding investing in CBOE till volatility reduces and a clear trend emerges.


CBOE has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, CBOE outperformed the SP500 index on 54% days.

CBOE returned losses on 54% days in the last three months. During this time, it delivered on average -0.11% per day. It delivered it's best daily return of +3.03%, during this period, on Tuesday, 27 Nov, 2018. There was initially a bullish trend during this period which started on 14 Sep, 2018 and went on till 27 Nov, 2018. The bullish trend returned +3.03% to investors. This was followed by a bearish trend that started on 3 Dec, 2018 and ended on 6 Dec, 2018. This bearish trend lost -3.39% of investor capital.

CBOE had 5 profitable and 7 loss making months over the last year. During the last year, CBOE underperformed SP500 index on monthly return basis. CBOE was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -16.65% compared to -3.97% returned by SP500 index in Dec 2018. CBOE had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

"The most popular investing products are the worst ones for investors.

CBOE is becoming less volatile overall. In comparison, the SP500 index is seeing a fall in volatility. During the last three months, there was a significant surge in CBOE's volatility from 14 Sep, 2018 to 4 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 10 Dec, 2018.

Advanced/professional short-term investors should note that CBOE has significant positive skewness in it's return distribution. This indicates that investors can expect CBOE to recover from drawdowns quickly. Which makes CBOE a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in CBOE derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

CBOE has more chance of extreme outcomes than the SP500 index. Therefore, CBOE must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than CBOE.

Based on your interest in CBOE you may find it interesting to know that NFEC and PRQR have both shown remarkable performance this year and deserve to be on every investors' watchlist.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter