DailyPlay – Opening Trade (CME) – March 7, 2025

CME Bullish Opening Trade Signal

Investment Rationale

CME Group Inc. (CME) recently broke out of its trading range with strong upside momentum, briefly reaching an all-time high, and is now consolidating following a short pullback from its peak. We believe the stock will retest that recent high and likely break through to the upside.

From a fundamental perspective, CME appears moderately undervalued. While its valuations are in line with the industry, it demonstrates far greater profitability. The company’s net margins exceed 55%, suggesting substantial upside potential. CME currently trades at a forward price-to-earnings ratio of 22.06, compared to the industry average of 17.45. Expected earnings per share growth for CME is 4.93%, while the industry average is higher at 13.19%. However, CME’s expected revenue growth stands at 5.42%, compared to the industry average of 8.37%. Most notably, CME’s net margins are an impressive 57.34%, far surpassing the industry average of 20.83%.

CME – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 Contracts CME April 17 $250/$240 Put Vertical Spreads @ $2.72 Credit per Contract.

Total Risk: This trade has a max risk of $2,184 (3 Contracts x $728) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $728 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on an stock that is expected to continue its bullish trajectory.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 91

Stop Loss: @ $5.44 (100% loss to value of premium)

View CME Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Thursday ‘s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View CME Trade