Cboe Unveils ‘Yes/No’ Prediction Contracts on Mini-S&P 500

Cboe Global Markets has launched the first products under its new Cboe PredictsSM platform, expanding its suite of retail trading tools with binary options tied to the performance of the S&P 500.

The initial offering consists of binary option contracts based on the Mini-S&P 500 Index (XSP), which trades at one-tenth the size of the benchmark S&P 500 Index. The contracts, listed under the symbols XSPBW and XSPBX, are now available through Interactive Brokers, with Charles Schwab expected to add access in the coming months. Additional brokerage platforms are also expected to support the products over time.

The contracts allow traders to take a simple directional view on where the XSP will close relative to a specified level. Investors can purchase a “yes” contract, which pays $100 if the index closes at or above the selected level, or a “no” contract, which pays $100 if the index settles below that threshold.

“Following the success of SPX 0DTE options, we have seen continued customer demand for shorter-dated, outcome-based trading,” said JJ Kinahan, head of retail expansion and alternative investment products at Cboe. “This creates a natural extension for Cboe to introduce XSP binary options.”

Cboe also plans to support trading of XSP vertical spreads through its proprietary Quoted Spread BookSM framework, which is designed to simplify more advanced options strategies for retail investors by presenting them in a more intuitive format.

Cboe’s binary options will trade under the same regulatory framework that governs U.S.-listed options markets.