Cboe launches binary options on Mini S&P 500 index

Cboe launches Cboe Predicts, offering binary options on the Mini-S&P 500 Index. Accessible via Interactive Brokers, with more brokers to follow, it targets retail traders with event-based products.

Cboe Global Markets has introduced Cboe Predicts, a new suite of prediction market products featuring binary options contracts linked to the Mini-S&P 500 Index (XSP). These contracts, trading under the symbols XSPBW and XSPBX, let traders take yes-or-no positions on whether the index will close above or below a set level. Each contract settles at either $100 or $0, depending on the outcome. Designed at one-tenth the size of standard S&P 500 options, these contracts are more accessible to retail traders. Currently, they are available through Interactive Brokers, with access via Charles Schwab and other brokerages expected soon. Cboe Predicts aims to broaden event-based trading and offer new opportunities for retail investors to participate in binary options trading based on major financial indices. The company also plans to expand its S&P 500 product suite with more complex options strategies in the future.