CME (CME GROUP, INC)

CME broke out yesterday after reporting earnings that missed revenue and eps estimates(excluding items). Technically speaking, they did beat the EPS estimate from a one time tax gain(thanks chicago) with an $11.25 EPS. The MF global cost CME 30 million, so not bad considering the scale of that mess. The stock was sitting near multi-year lows a few weeks back when we put it on watch here(read). It has now broken out and looks ready to retest $280.

 

Goldman Sacks kept their neutral rating on the stock, and raised their price target to $270 from $250 this morning. Goldman has been wrong about this stock for the past few years, one time adding it to it's conviction buy list. With more exchanges reportiing earnings next week, like ICE (Intercontinental exchange), CME could keep moving to the upside.

CME has been an option traders wet dream, as the $270/$280 FEB 18th strikes have returned over 1000% in the past 24 hours of trading. Lets see if it keeps its momentum, and keep your eyes on ICE for possible breakout next week.

 

 

 

Profile photo of jimmybobJimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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