Feb. 6 - Cboe Global Markets recorded a rise in fourth-quarter profit, reflecting stronger options trading activity as volatility in financial markets increased in recent months. Traders' heightened activity - attributed in the report to uncertain trade policies and greater geopolitical tensions - contributed to more hedging and directional bets, lifting volumes and revenues across exchanges.
The company reported that net revenue from its options trading segment increased 34% to $433 million for the quarter. This followed a 24% increase in total average daily options volume, according to the results. Cboe also disclosed net income allocated to common stockholders of $312 million, or $2.97 per share, compared with roughly $196 million, or $1.86 per share, in the same quarter a year earlier.
Other major U.S. exchanges have similarly benefited from the uptick in trading volumes; the report noted that peers including CME Group, Nasdaq and Intercontinental Exchange have posted strong quarterly results tied to higher activity.
Alongside the stronger top-line performance from options, Cboe said it is streamlining its operations to concentrate on higher-growth areas. The exchange is narrowing its focus to core offerings while pursuing expansion into markets such as prediction markets and cryptocurrency-related products. In line with that strategy, it has exited businesses in Australia and Canada and previously wound down its Japanese equities business.
The company is also in the early stages of exploring a new product that would employ an options structure to deliver all-or-none payouts, a design intended to position the exchange to compete with quickly growing prediction market platforms.
Investor research and tools referenced in the report
The write-up included a note on investor tools used to evaluate Cboe, mentioning that ProPicks AI assesses CBOE alongside thousands of other companies each month using more than 100 financial metrics. The description stated that the AI evaluates fundamentals, momentum and valuation to surface potential stock ideas, and it referenced past winners identified by that system.
Overall, the quarter highlighted how an environment of heightened volatility can lift derivatives volumes and related revenue streams, while prompting strategic shifts toward areas the exchange views as higher growth.