FinanceCboe Reintroduces S&P 500 Binary Options, Targeting Growing Prediction Markets
Cboe, a leading U.S. derivatives exchange, is reintroducing binary options on the S&P 500, a move that aligns with the rising popularity of prediction markets by platforms like Polymarket and Kalshi.
By Shaurya Malwa|Edited by Sheldon Reback Jun 24, 2026, 10:38 a.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on
Cboe is set to bring back binary options for all-or-nothing betting. (Heather Gill/Unsplash)- Cboe is reviving S&P 500 binary options, allowing yes/no bets on whether the index will reach a specified level, after discontinuing similar products over ten years ago.
- The exchange is introducing a new feature that enables partial payouts based on the index's movement, rather than sticking to the traditional all-or-nothing model.
- This initiative is part of a broader trend, with increasing interest in prediction markets, as evidenced by platforms like Polymarket and Kalshi.
Cboe, a prominent U.S. derivatives exchange, is reentering the prediction market space by reintroducing binary options for the S&P 500 index, a product it had previously discontinued over a decade ago. This strategic move positions Cboe to compete with platforms like Kalshi and the crypto-focused Polymarket.
Binary options function as a yes-or-no wager that pays a predetermined amount if a specific event occurs, such as the S&P 500 crossing a designated threshold. While similar to offerings from Polymarket and Kalshi, these platforms also encompass a range of topics beyond stock market predictions, including political and sports outcomes.
This reintroduction follows Cboe's successful launch of same-day S&P 500 options, which now account for approximately 30% of U.S. options trading volume, highlighting a demand for rapid, outcome-oriented trading options.
Milan Galik, CEO of Interactive Brokers, which will facilitate the trading of these binary contracts, noted, "Investors increasingly seek products that allow them to express a specific view on future events and market outcomes."
Additionally, these contracts will be available on Charles Schwab in the upcoming year.
Second Attempt
Cboe has previously ventured into this market by listing binary options on the S&P 500 and the Cboe Volatility Index in 2008. However, they failed to gain traction and were eventually withdrawn, with the last contract expiring in 2017.
In the years since, the emergence of prediction markets has demonstrated their profitability, with Polymarket and Kalshi successfully allowing individuals to wager directly on various outcomes.
Currently, a Polymarket position on "What will the S&P 500 (SPX) reach by the end of June?" has garnered over $528,000 in volume, while another position for "What will the S&P 500 (SPY) hit in June 2026?" has attracted $518,000. On Kalshi, the question "How high will the S&P rise by month-end?" has seen $863,000 in volume, with over $4 million on the year-end bet.
This surge in interest has drawn in other players. Recently, Mark Zuckerberg's Meta (META) announced plans to develop a prediction-market app, while the Nasdaq exchange has received approval to introduce its own binary index options later this year.
Cboe is also implementing a new feature termed "plus," which is based on a vertical spread—an options structure that allows for proportional payouts as the index fluctuates instead of adhering to a strict all-or-nothing approach.
This innovation enables traders to achieve partial winnings, presenting a means to more accurately define risk compared to a straightforward yes/no contract.
In practice, the broker executes this by placing two linked options: a purchased call at a lower price offset by a sold call at a higher price.
Notably, Cboe's offerings are designed to be more regulated compared to its competitors. While Cboe operates through U.S. brokerages, Polymarket runs on a blockchain, allowing bets to be placed and settled in USDC, a stablecoin pegged to the dollar, and is accessible worldwide without requiring sign-up.
This level of accessibility has global appeal, as demonstrated by a recent trade where a single anonymous wallet turned approximately $4 million into a $9 million profit on Cabo Verde's World Cup draw with Spain, all of which was transparently recorded on the blockchain.
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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