Charles Schwab Plans S&P 500-Linked Event Options With Cboe
Summary
- Charles Schwab plans to launch a new type of options product tied to S&P 500 index moves in partnership with Cboe Global Markets.
- The product will let investors bet on whether the S&P 500 index closes above a preset level at a specific time, paying a fixed amount if the threshold is exceeded.
- CoinDesk said the product has a structure similar to a binary option, would mark Charles Schwab's first move into the prediction-market business, and is set to be offered to clients in the coming months.
Forecast Trend Report by Period
Charles Schwab plans to launch a new options product tied to moves in the S&P 500 in partnership with Cboe Global Markets.
CoinDesk reported on June 19 that the product will allow investors to bet on whether the S&P 500 closes above a preset level at a specific time.
The contract will pay a fixed amount if the index finishes above that threshold and nothing if it does not. CoinDesk said the structure is similar to a binary option.
The launch would mark Charles Schwab's first move into the prediction-market business.
Unlike existing prediction-market platforms that offer futures-style contracts tied to outcomes such as elections or economic data, the new product focuses on moves in a stock index itself.
Charles Schwab plans to offer the product to clients in the coming months.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
