CBOE Holdings (NASDAQ:CBOE) RPC Down on Volume Discounts

CBOE Holdings (NASDAQ:CBOE) has a "Sell" rating maintained on them by Ticonderoga, as RBC remains down because of volume discounts and a "shift away from the higher earning index options.'

Ticonderoga said, "CBOE reported November ADV of 4.4m, which represents a 2% sequential increase and a 5% YOY rise...RPC Outlook. For the three months ending in October, CBOE reported an RPC of $0.302, down from $0.306 posted in September. RPC is down due to greater levels of volume discounts and a mix shift away from the higher earning index options. For the quarter, we are forecasting RPC of $0.293...4Q10 Outlook. We are forecasting 4Q10 EPS of $0.26 versus consensus of $0.29. We are building in a 20% decline in December ADV, resulting in an overall 4Q10 ADV forecast of 4.11m. Given current activity levels, we believe estimates are likely to come in the $0.27-0.29 range depending on how December levels hold up."

CBOE closed Thursday at $24.34, gaining $0.43, or 1.80 percent. Ticonderoga has a price target on them of $20.