The exchange revives yes-or-no bets on the S&P 500 with partial payouts, competing with platforms like Polymarket and Kalshi.
Cboe is relaunching S&P 500 binary options, a product it discontinued over a decade ago, to enter the growing prediction-market space. The exchange will offer yes-or-no bets on whether the index crosses a set level, with a new feature allowing partial payouts based on index movement.
Binary options traditionally deliver an all-or-nothing outcome, but Cboe’s updated structure enables traders to receive incremental returns. The move aligns with broader industry trends, as platforms like Polymarket and Kalshi have popularized prediction markets for events beyond equities, including politics and sports.
The revival reflects increasing mainstream adoption of prediction-style trading, with exchanges like Nasdaq and firms like Meta also exploring similar markets. Cboe’s decision positions it alongside crypto-native platforms in a rapidly expanding sector.