Trade Tracker: Joe Terranova sells the CBOE

Scott Wapner (Host of Halftime Report) 00:00.070

gotta move from joe T which is what what you do C

Joe Terranova (Chief Market Strategist) 00:05.150

B O E you would say we rang the register on it i rang the register on it because i own it personally it really boils down to relative underperformance and something that i look at and i utilize in my investing and trading strategy and that's where is an individual equity name

Joe Terranova (Chief Market Strategist) 00:21.550

versus its industry or versus a sector relative since the last six weeks going back CBOE has unfortunately underperformed even with really good earnings it's underperformed some of the various exchanges and certainly it's underperformed the financial sector so at that point for

Joe Terranova (Chief Market Strategist) 00:39.070

me it's a motivation to move to the sidelines ring the register i still think it's going to be a really good environment

Scott Wapner (Host of Halftime Report) 00:44.630

made money twenty six made money

Joe Terranova (Chief Market Strategist) 00:46.070

in it i did i did because

Scott Wapner (Host of Halftime Report) 00:48.110

when you say you ring the register

Joe Terranova (Chief Market Strategist) 00:49.470

i mean yes i did make money on it let me get my last point out though as it relates to options i still think twenty twenty six we look at where the vix is right now near a low for the year below fifteen i don't think even if it's a positive year next year in twenty six you want

Joe Terranova (Chief Market Strategist) 01:05.550

to be short volatility i think utility is going to increase substantially in twenty six even in a bull market OK

Scott Wapner (Host of Halftime Report) 01:12.150

so you still own the CME group and you still own nasdaq which josh if you remember highlighted last week during his best stocks in the market list in the context of discussing the idea of the twenty three hour trading which they are pursuing

Josh Brown (CEO) 01:30.070

and i feel

Scott Wapner (Host of Halftime Report) 01:30.430

like the exchanges general why hasn't this one worked relative to some of the others why why hasn't CBOE CBOE

Joe Terranova (Chief Market Strategist) 01:36.630

CBOE we sit i i think since earnings maybe positioning was a little bit full maybe it was sentiment i don't think identify one specific reason why in fact the stock has been experiencing the relative underperformance there has been very strong enthusiasm around the usage of

Joe Terranova (Chief Market Strategist) 01:55.470

options rather in the capital markets i think that led to a lot of people owning CBOE and i think CBOE is going to be fine in twenty six i think from where it is right here i'll look back i'll say it was a a poor sale but it's really understanding what i use as an indicator and

Joe Terranova (Chief Market Strategist) 02:10.990

i don't like relative underperformance versus an industry or you might

Scott Wapner (Host of Halftime Report) 02:14.390

say this is a good sale because you know morgan stanley has reiterated they're underweight on CBOE josh they reiterate their overweight on nasdaq they take the target to one eleven CME group reiterated overweight the target goes to three twenty schwab they put in that group

Scott Wapner (Host of Halftime Report) 02:30.910

reiterated overweight and the target to one forty eight

Josh Brown (CEO) 02:35.880

yeah it's a strange grouping schwab doesn't really belong with the other three the other three are exchanges and directionally not as important what happens with for example rates or stocks i mean obviously in an upward direction is more helpful for certain types of business

Josh Brown (CEO) 02:51.910

like nasdaq but volatility is better for you know CBOE so like it's the driver has just increased activity i guess would be the point whereas schwab like a lot of the money being made there is coming from sweeps on cash balances et cetera so maybe like the rates picture is more

Josh Brown (CEO) 03:09.950

important for them but i still think they do well with a rising tide asset management businesses etc i i i like schwab i really like nasdaq i think it's a it's just a crown jewel amongst this group they're benefiting from ipos they're benefiting from more data listing activity

Josh Brown (CEO) 03:29.030

trading just so many different ways to win

Scott Wapner (Host of Halftime Report) 03:31.630

OK