Summary
- Charles Schwab plans to launch a new type of options product linked to S&P 500 index moves in partnership with Cboe Global Markets.
- The product will allow investors to bet on whether the S&P 500 index closes above a preset level at a specific time, with a fixed payout if it finishes above that threshold.
- CoinDesk said the product has a structure similar to a binary option, marking Charles Schwab's first entry into the prediction-market business, and is set to be offered to clients in the coming months.
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 closes above that threshold. If it does not, there will be no payout. CoinDesk said the structure resembles a binary option.
The launch marks Charles Schwab's first entry into the prediction-market business.
Unlike existing prediction-market platforms that offer futures-style contracts tied to the outcome of events such as elections or economic data, the new product is linked to the movement of a stock index itself.
Charles Schwab plans to offer the product to clients in the coming months.
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