Jim Cramer Backs CME, Cboe as 27.8% Cboe Rally Highlights Exchange Pricing Power
Updated
Updated · Yahoo Finance · Aug 8
Jim Cramer Backs CME, Cboe as 27.8% Cboe Rally Highlights Exchange Pricing Power
1 articles · Updated · Yahoo Finance · Aug 8
Summary
August 5's Mad Money lightning round saw Jim Cramer endorse CME Group and Cboe Global Markets, calling both attractive exchange operators because their market positions resemble monopolies or duopolies.
Cramer tied that view to durable pricing power: CME runs the world's largest derivatives exchange across rates, equity indexes, energy, agriculture and FX, while Cboe dominates index options and volatility products such as the VIX.
Cboe had already stood out on Cramer's August 3 show after a 27.8% July gain, which he linked to rising market volatility and a strong quarterly report that gave the stock another lift.
Among hedge funds tracked by Insider Monkey, CME remained more widely held in Q1 2026 at 70 funds versus Cboe's 44, even as both slipped from the prior quarter.
Valuation and positioning were close: CME traded at 21.88 times forward earnings versus Cboe's 22.62, while short interest stayed low at 1.81% and 2.98%, underscoring limited bearish pressure on either stock.
Could CME's bold move into single-stock futures for giants like SpaceX trigger a massive shift in how global investors trade outside regular hours?
If market volatility suddenly crashes, will Cboe's heavy reliance on exclusive options agreements become a catastrophic flaw instead of a bulletproof moat?
With hedge funds quietly reducing their stakes, are these monopoly exchange stocks actually hiding a major vulnerability behind their recent massive rallies?