A Trade Idea for the Remainder of 2019

NASDAQ: CME | CME Group Inc. -  News, Ratings, and Charts

CME – Today’s article brings to you a trade idea for the remainder of 2019. Continue reading for more details on this potential winner.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

In gambling, it’s known that the house has the best odds.  The Chicago Mercantile Exchange (CME)  acts as the largest casino for trading in bonds, currencies and stock index futures.  This is the products in which the ‘whales’ of global finance move billions of dollars each day as they adjust their portfolios.  And the CME Group Inc. - (CME - Get Rating) Group Inc. - (CME - Get Rating) takes a fee with every transaction.

Earlier this week, the CME Group Inc. - (CME - Get Rating) Group Inc. - (CME - Get Rating) released trading volume numbers for August and they were the second-highest monthly on record despite August being a traditionally slow month.

The numbers were up across the board led by equity index contracts increasing over 105% to 5.1 million contracts a day and interest rate volume up 59% to 13.7 million contracts a day.

The heightened trading activity was driven by trade tariff tensions and the unprecedented move in interest rates with over $17 trillion of bonds now sporting negative yield.

There is no reason to think these issues will subside heading into the fourth quarter.  In fact with a supposed re-opening of trade talks to resume in October and a key FOMC meeting in mid-September market anxiety and trading volumes are likely to increase.

Another key revenue driver and profit center are fees for market data for which it has a near-monopoly; information services and communication fees have been increasing by over 10% annually for 3 years and will cross the $200 million mark this year.

Shares of CME Group Inc. - (CME - Get Rating) Group Inc. - (CME - Get Rating) reflect the robust trading environment with shares in a solid uptrend, up some 30% in the last three months alone.

CME Group Inc. - (CME - Get Rating) reaps profits by accommodating other peoples forays into the world of trading and risk management. As we head into a very uncertain future, I think the shares will continue higher.

CME Group Inc. - (CME - Get Rating) shares were trading at $224.01 per share on Friday afternoon, up $2.83 (+1.28%). For the year-to-date, CME Group Inc. - (CME - Get Rating) Group Inc. - (CME - Get Rating) has gained 20.04%, versus a 20.59% rise in the benchmark S&P 500 index during the same period.

About the Author: Steve Smith

Steve has more than 30 years of investment experience with an expertise in options trading. He’s written for TheStreet.com, Minyanville and currently for Option Sensei. Learn more about Steve’s background, along with links to his most recent articles. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CMEGet RatingGet RatingGet Rating

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NASDAQ: BGCP | BGC Partners, Inc. -  News, Ratings, and Charts

7 Extreme Yield, Extreme Value Stocks

BGCP delivers 9.77% dividend yield and 57% upside to fair value targets. And that is only 1 of the 7 stellar stocks shared below.
: .INX | S&P 500 Index News, Ratings, and Charts

The Good & Bad News of the US-China Trade War

Thanks to the fast-changing soap opera that is the US/China Trade war stocks have spent much of the last year going nowhere fast. Continue reading to find out the good and bad news about the trade war.
: ctst | CannTrust Holdings Inc. Common Shares News, Ratings, and Charts

CannTrust (CTST) Loses its License, What Happens Next?

Just as we thought we were coming to a conclusion in terms of the CannTrust (CTST) scandal, things took another turn.
NYSE: SPY | SPDR S&P 500 News, Ratings, and Charts

Replay: 9/17 Reitmeister's Strategy Session Webinar

9/17 marked the launch of the Reitmeister Strategy Session webinar series. See the topics covered below and with link to on-demand replay video.
NASDAQ: PENN | Penn National Gaming, Inc. News, Ratings, and Charts

Time to Unwrap the Stock of the Week

Time to place your chips on Penn National Gaming. 40% EPS growth + 36% upside to fair value.

Read More Stories

More CME Group Inc. - (CME) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CME News
Page generated in 1.0809 seconds.