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Charles Schwab is partnering with Cboe Global Markets to roll out all-or-nothing binary options on the S&P 500, letting customers place yes-or-no wagers on whether the index closes above or below a chosen strike at expiry. Settlements are fixed cash or zero.
Why it matters
The contracts differ structurally from event contracts run by Kalshi and Polymarket — Schwab's binary options are tied to a continuous index level rather than a discrete real-world event — but they function as a similar kind of wager and will sit inside one of the largest US brokerage accounts on the planet. That puts a regulated, household-name TradFi venue directly into the same behavioural lane as the prediction-market platforms the CFTC oversees.
Market impact
For the prediction-market sector the read is competitive: TradFi isn't waiting on the sidelines to see how event-contract platforms evolve, it's launching adjacent products on its own rails. For options exchanges, Cboe is positioning itself as the infrastructure backbone for this category — a role it has tried to extend from vanilla equity index options into newer speculative wrappers. Watch the launch window in the coming months and whether Schwab frames the product as a hedging tool, a speculation tool, or both.
Frequently asked questions
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What is Charles Schwab launching with Cboe?
Charles Schwab is partnering with Cboe Global Markets to roll out all-or-nothing binary options on the S&P 500, paying a fixed cash settlement or nothing depending on whether the index closes above or below a chosen strike at expiry.
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How are Schwab's binary options different from Kalshi or Polymarket event contracts?
Schwab's binary options are tied to a continuous index level (the S&P 500), while Kalshi and Polymarket settle on discrete real-world events. They function similarly as yes-or-no wagers, but the underlying structure differs.
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When will the Schwab binary options launch?
According to the WSJ report, the products are expected to roll out in the coming months. No exact launch date has been announced.
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Why does this matter for the prediction-market sector?
It signals that TradFi is not waiting on event-contract platforms to evolve — a top US brokerage is launching adjacent products on its own regulated rails, increasing competition for Kalshi, Polymarket and similar venues.
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What role is Cboe playing in this launch?
Cboe Global Markets is the infrastructure partner, extending its role from vanilla equity index options into newer speculative wrappers like these binary options.
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