Volume swings are erratic making it difficult for investors to determine the present value of future profits.
Overall options growth has been slower of late. Declining growth is never an attractive proposition in any product line.
Flat markets are not good for business. Competition will grow. Regulators will continue to push their useless noses into CBOE business and distract management and destroy good pricing models. Regulators do not understand risk. They are like the fire dep’t. They show up after the problem flares up.
Other forms of competition are developing attractive and compelling products. CBOE will have to hustle fast, longer and harder just to stand still.
George Gutowski writes from a caveat emptor perspective.