By: Scott Redler
CBOE Holdings was a highly anticipated IPO that proved to be a flop. This is why I always recommend giving new issues time to set up and prove themselves. We do trade them on day one sometimes, but it is usually best to let them settle.
CBOE has tried to create patterns that have all broken to the downside, but this time could be different. The buy price here is 23.25-23.50 with a first target in the 25.00 area, but this could turn into a long term hold. Stops should be at 22.50, only risking a dollar on the trade. I’ll take that risk-reward ratio any day.
