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Why this bull is sticking with CBOE

David Russell (david.russell@optionmonster.com)

One investor apparently believes that there's more money to be made in CBOE Holdings.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 4,000 June 37.25 calls for $0.65 and the sale of an equal number of June 34.25 calls for $2.05. Volume was below the previous open interest in the 34.25 strike, indicating that an existing position was rolled forward in time.

The investor seems to be adjusting a winning trade. He or she collected a credit of $1.40, representing most of the capital at risk, and now stands to make further profits if the shares continue to rally. (See our Education section for more on how options can be used to manage trades.)

CBOE rose 2 percent to $35.69 yesterday and is up 21 percent so far this year. In contrast, the S&P 500 is up just 7 percent and the broader financial sector has gained 9 percent.

The company, which is the parent of the Chicago Board Options Exchange, has reported earnings above analysts' estimates for at least the last four quarters. It's been trading at new all-time highs for the last week.

Total option volume was 6 times greater than average in the session, according to the Heat Seeker. Calls outnumbered puts by a bullish 10-to-1 ratio.

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