Charles Schwab And Cboe Plan S&P 500 Yes-Or-No Options As Prediction Markets Go Mainstream
Charles Schwab is reportedly working with Cboe Global Markets on a retail product that would let customers trade daily yes-or-no outcomes on the S&P 500, similar to binary options. The contracts would pay a fixed amount if the trader is right about where the index closes and nothing if wrong. Cboe’s planned “Plus Zone” could add partial payouts when the final close is near the target, making the product simpler than traditional options and more accessible to retail users. The move matters because it brings prediction-market-style trading into a mainstream U.S. brokerage setting, reflecting demand already seen in crypto-native and regulated event markets like Polymarket and Kalshi. It also raises the usual concerns around easy-to-understand but potentially overused speculative products. The rollout is not live yet and depends on regulatory and operational details.
