Cboe revives S&P 500 binary options, chasing a market popularized by Polymarket, Kalshi
Cboe is reintroducing binary options for the S&P 500 to compete with the growing popularity of prediction markets like Polymarket and Kalshi. These 'yes-or-no' financial contracts allow investors to bet on specific market outcomes, reflecting a broader trend toward fast, event-based trading.
Why it matters
The move signals a significant shift in traditional finance as established exchanges adopt models popularized by decentralized prediction platforms.
A binary option is a yes-or-no bet that pays a fixed amount if an outcome occurs, in this case whether the benchmark U.S. equity index crosses a specific level. That is close to what Polymarket and Kalshi already offer, though their offerings go beyond stock market forecasts to cover political and sporting outcomes as well as other topics.
The article provides a factual overview of market trends and corporate strategy without taking a stance.
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