Is Cboe Global Markets Stock a Buy?
The stock market has been on a historic bull run, which has been great news for a lot of investors. It's even been good news for a company like Cboe Global Markets (NYSEMKT: CBOE), which itself is a market. Cboe Global Markets, based in Chicago, is one of the world's largest option markets, offering trading for options, futures, U.S. and European equities, exchange-traded funds, and other investments across multiple geographies. Founded in 1973 as the Chicago Board Options Exchange, it's best known for its Cboe Volatility Index (VIX), which measures stock market volatility.
The company makes most of its money facilitating options trades through its various products. Options allow investors to buy or sell a stock at an agreed-upon price that's lower than the established stock price for a specific time frame. Options are often used by investors to reduce risk, as they enable them to buy shares at a lower price.
Over the past 12 months, Cboe's stock price is up about 24%. The stock has proven to be a good option for investors over the last few years, but with many predicting the VIX to be more volatile in 2020, what does that mean for the company that owns VIX?
Source Fool.com
