Jun. 19 at 5:07 PM
$SCHW &
$CBOE to roll out yes-or-no options contracts tied to S&P 500 performance, available to customers in the coming months
Cboe is listing cash-settled binary options on the Mini S&P 500 Index (XSP). Contracts pay a fixed
$100 or
$0 depending on whether the index settles above or below the strike. A new “plus zone” (payout zone) feature adds a partial payout if you’re directionally right but miss the exact strike — offering three possible outcomes instead of pure all-or-nothing
Schwab plans to stick to finance events w/ verifiable outcomes, ruling out contracts on the World Cup or the Oscars
Note: Kalshi contracts are CFTC-regulated event contracts covering a wide range of topics (elections, economics, sports, Oscars, etc.). Pure binary yes/no.
Cboe/Schwab are SEC-regulated securities options, strictly limited to verifiable financial outcomes (S&P 500 performance for now). Exchange-listed & OCC-cleared. Feels more like familiar brokerage options trading w/ stronger investor protections
Schwab CEO Rick Wurster called prediction markets "not high on our list at the moment" in Dec 2025
$HOOD &
$IBKR already offer prediction-market products
