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NYSE prepares binary options on stocks, seeks SEC nod for earnings contracts
Reuters reported Tuesday that the New York Stock Exchange is preparing to list binary return options on 12 securities and is seeking SEC approval for similar contracts tied to company metrics.
- New headline Was: “NYSE moves to bring all-or-nothing options to stocks and company earnings”
- Our desk filed its story
Based on reporting by Reuters
The New York Stock Exchange is preparing to start trading binary return options that pay based on whether a stock or exchange-traded fund closes above or below a set price, Reuters reported on Tuesday1.
Those contracts are expected to begin trading within days on 12 underlying securities, including Apple, Nvidia, Tesla and the SPDR S&P 500 ETF Trust, with more names to be added later, according to the report1.
NYSE is also awaiting U.S. Securities and Exchange Commission approval for binary key performance indicator options, which would settle in cash at expiration at either $1 or nothing depending on whether a company reports a metric such as net sales, earnings per share, cloud revenue or vehicle production above or below a strike, Reuters said1.
Cboe Global Markets recently received approval for similar KPI-based contracts with Robinhood, the report said1.