Overview
- Cboe launched Cboe Predicts Tuesday, listing two Mini‑S&P 500 binary option tickers, XSPBW and XSPBX, that let traders take simple yes‑or‑no positions on where the index will close.
- The contracts trade as securities options on the Cboe Options Exchange and are centrally cleared by the Options Clearing Corporation to use established risk‑management and settlement systems.
- Each binary pays a fixed $100 or $0 at settlement, and Cboe added a proprietary three‑outcome 'Plus Zone' that gives a partial payout using a vertical‑spread structure.
- The products are available now through Interactive Brokers, Charles Schwab plans to add access in the coming months, and Cboe says more broker distribution and XSP vertical‑spread products are on its roadmap.
- Cboe’s move revives a decade‑old product type and positions a major exchange to capture retail flow from fast‑growing prediction platforms like Kalshi and Polymarket while operating inside regulated U.S. options infrastructure.