Cboe launches binary options on Mini-S&P 500

Cboe Global Markets launched Cboe Predicts on June 23, 2026, introducing binary yes-or-no contracts tied to the Mini-S&P 500 Index (XSP). The first two symbols, XSPBW and XSPBX, are listed and available to customers of Interactive Brokers.

Each contract delivers a fixed $100 payout at settlement if the outcome condition is met, and $0 if it is not. Buyers of a “yes” contract receive $100 if XSP closes at or above the specified level; buyers of a “no” contract receive $100 if XSP closes below that level.

Trades use existing listed options infrastructure and are routed through regulated brokerage platforms rather than by direct exchange access. The contracts are built on XSP, which replicates S&P 500 exposure at one-tenth the size of standard SPX positions, lowering capital requirements for smaller accounts.

Clearing and settlement are handled by the Options Clearing Corporation, placing the products within established operational and regulatory systems for U.S.-listed options. Execution and order flow follow standard equity derivatives routing and participating brokers process the trades on their platforms.

Interactive Brokers is the first broker to offer the contracts. Charles Schwab intends to add access in the coming months as distribution expands to additional intermediaries.

Cboe has published educational materials through The Options Institute and a dedicated online hub to explain contract mechanics and risks. The exchange also plans to expand the product family to include XSP vertical spreads using its Quoted Spread Book framework to standardize multi-leg trades and preserve defined risk profiles.

James Kostulias, head of Trading Services at Charles Schwab, said: “We support approaches that bring transparency, defined risk, and investor education to financial-related prediction markets. We plan to offer clients access to these binary options contracts in the coming months, building on our existing platform and demand from active traders.”

Cboe described the contracts as having a simpler payoff than conventional options because the outcome is a fixed-dollar payment rather than a profit or loss tied to the magnitude of price movement. The exchange noted the products are intended for traders placing concise directional bets on Mini-S&P 500 settlement levels.