Key Points
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U.S. options volume is trending toward a seventh straight record year.
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Cboe and Nasdaq are seeing strong growth in derivatives, led by index options.
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New products and longer trading hours could add fuel to the trend.
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The U.S. options market is on track for a seventh straight record year. Cboe Global Markets (NYSEMKT: CBOE) and Nasdaq (NASDAQ: NDAQ), leading exchange operators, are already seeing strong growth across their core businesses.
In fact, the single-day high over the past year was more than 110 million contracts. That’s almost twice the average daily trading volume seen in 2025.
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So, how are the two exchanges positioned to benefit from these trends?
Image source: Getty Images.
Cboe and Nasdaq hit new milestones
Cboe posted another record quarter in the period ending June 30, thanks to strong trading activity across its markets, especially in index options.
In the second quarter of 2026, the company generated a record $732 million in net revenue, up 25% from a year ago, while adjusted diluted earnings per share rose 45% to $3.60.
The biggest driver? Cboe’s derivatives business, which saw net revenue climb 30% year over year to a record $413 million. Demand for options was exceptionally strong. In fact, the average daily volume of index options rose 32% to 6.2 million contracts.
Nasdaq, meanwhile, reported $1.5 billion in net revenue over the same period, up 15% year over year. Interestingly, Nasdaq’s options business is becoming increasingly important. Its market services net revenue rose 11% while U.S. equity options volumes hit record highs.
Revenue from index options more than doubled year over year for the fourth consecutive quarter. And with index exchange-traded product (ETP) assets under management crossing $1 trillion for the first time, that momentum is only getting stronger.
Cboe and Nasdaq have built strong franchises, but the two exchanges are already developing the next drivers of growth beyond their core businesses.
Cboe and Nasdaq are building the future of trading
Cboe’s options business is thriving, but management is already thinking well beyond its core products.
It recently launched Cboe Predicts, the company’s prediction-market suite, with binary options on the Mini-S&P 500 Index, allowing investors to trade simple “yes or no” positions tied to market outcomes. Cboe believes these products are simpler and more intuitive for newer investors.
The company is also developing company-specific key performance indicator (KPI) contracts, subject to regulatory approval, that allow investors to trade key business metrics, such as Nvidia‘s data center revenue, for example, rather than the stock itself.
And behind the scenes, Cboe is preparing to expand U.S. cash equities trading to 23 hours a day, five days a week, with a long-term goal of 24/7 trading.
On the other hand, Nasdaq is preparing to launch event options tied to the Nasdaq-100. The new product is expected to launch in the fourth quarter and will provide the exchange with another growth avenue within its derivatives business.
The exchange is also planning to launch 23/5 trading in December, allowing users to trade 23 hours a day, five days a week. This could help boost trading volumes by allowing investors to react to overseas headlines without waiting for the U.S. market to open.
So, can these initiatives strengthen the bull case for Cboe and Nasdaq?
Can options trading volumes set a new record?
2025 was the sixth consecutive record year for average daily options volume, with roughly 61 million contracts traded per day. Through the second quarter of 2026, daily volume averaged nearly 71 million contracts. That puts 2026 well ahead of last year’s record pace. But with the surge in retail trading, activity could rise even further.
Cboe achieved another record fiscal quarter, driven by rising retail trading and demand for options. Meanwhile, Nasdaq continues to see meaningful growth in index options. If volumes continue to pick up, options revenue could keep climbing, driving stronger revenue growth for both exchanges.
And if options trading accelerates further, U.S. options volumes could set a seventh straight record year. That could make Cboe and Nasdaq some of the best ways to invest in that trend.
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Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Cboe Global Markets and Nasdaq. The Motley Fool has a disclosure policy.
