Cboe Launches Mini-S&P 500 Binary Options on Interactive Brokers
CBOE•Cboe Global Markets launched Cboe Predicts with Mini-S&P 500 binary options (symbols XSPBW, XSPBX) now available on Interactive Brokers and slated for Charles Schwab. Traders can pay $100 for yes/no contracts on XSP closing levels and later access vertical spreads via the Quoted Spread Book framework.
1. Cboe Predicts Launch
Cboe Global Markets introduced its new Cboe Predicts suite with the first binary option contracts on the Mini-S&P 500 Index, listed under symbols XSPBW and XSPBX. These contracts are live on Interactive Brokers, with rollout scheduled at Charles Schwab and additional retail platforms planned thereafter.
2. Contract Structure and Payout
Each binary option carries a $100 defined-risk payout: a "yes" position pays $100 if XSP settles at or above the strike level, and a "no" position pays $100 if below. The XSP product is scaled to one-tenth the size of the standard S&P 500 options, making it more accessible to retail traders.
3. Expansion and Infrastructure
Cboe plans to extend the suite to include XSP vertical spreads through its patent-pending Quoted Spread Book framework and has launched educational resources via The Options Institute. All contracts clear centrally through the Options Clearing Corporation, ensuring robust risk management and oversight.
