Schwab and Cboe to launch S&P 500 binary options

Schwab and Cboe plan binary options on the S&P 500, offering fixed and partial payouts for 'yes or no' bets on the index's daily close.

Charles Schwab is teaming up with Cboe Global Markets to introduce binary options contracts tied to the daily close of the S&P 500 index. These contracts will let clients make 'yes or no' bets on whether the index closes above or below a set level, offering a fixed payout for correct predictions. A unique 'plus zone' feature is also planned, providing partial payouts to those whose predictions come close to the actual result. This product is still in development and is designed to compete with prediction markets like Kalshi and Polymarket, but will focus solely on verifiable financial outcomes. Unlike native prediction platforms, Schwab and Cboe's offering will use a regulated options framework and cash settlement, and will be integrated into traditional brokerage platforms. Retail client access is expected in the coming months, pending official confirmation.