Cboe Seeks Binary Options Tied to Company KPIs, Including Coinbase Trading Volume

Cboe Global Markets is seeking to list a new type of binary option tied to the outcome of corporate earnings reports.

Bloomberg reported on July 1 that Cboe filed an application with the U.S. Securities and Exchange Commission to win approval for what it calls Binary KPI Options. The contracts would pay out based on whether financial and operating metrics disclosed by companies meet preset thresholds.

The products would be tied not to stock-price moves but to whether a company’s key performance indicators clear specific benchmarks. The metrics would include SpaceX revenue, Nvidia data center revenue, Apple iPhone sales, Tesla Model 3 and Model Y production, JPMorgan loan-loss provisions and Coinbase trading volume.

Cboe plans to launch the products based on 23 companies and more than 100 earnings metrics.

The contracts resemble prediction markets such as Kalshi and Polymarket, which let traders bet on yes-or-no outcomes, but they would operate under a different regulatory framework. Kalshi and Polymarket are overseen by the Commodity Futures Trading Commission, while Cboe, as a securities exchange, must obtain SEC approval.

Traditional exchanges have recently been rolling out event-based investment products similar to prediction markets as they seek to capture demand from retail investors. Cboe last week relaunched binary options tied to whether the S&P 500 reaches a specific level for the first time in more than a decade, and Nasdaq plans to introduce index-based binary options later this year. Intercontinental Exchange, the parent of the New York Stock Exchange, is also preparing new futures products tied to monetary policy and U.S. natural gas inventories.