NYSE Prepares Binary Options Launch to Tap Event-Driven Trading Demand
· Business · Economic Times
The New York Stock Exchange is preparing to launch binary return options that let investors make all-or-nothing bets on whether stocks and ETFs finish above or below set prices. The new contracts will initially cover 12 underlying securities including Apple, Nvidia, Tesla, and the SPDR S&P 500 ETF Trust, with more securities to be added over time. These options are designed around simple outcomes, paying one dollar or nothing at expiration depending on the security's final price. The move comes as options trading and event-based contracts expand rapidly, driven by investor demand for precise ways to trade market events. Additionally, NYSE is seeking approval from the US Securities and Exchange Commission for KPI options linked to company earnings metrics.
Why it matters
The expansion of binary and earnings-linked options gives traders new instruments to express precise views on individual stocks and market events, reflecting growing demand for targeted derivatives on major US exchanges.
Read the original report — Economic Times
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