Key facts
- NYSE is launching new all-or-nothing options contracts on stocks and ETFs.
- The exchange is also seeking approval for binary options tied to company earnings metrics.
- The contracts will pay either $1 or nothing at expiration.
- Initial underlying securities include Apple, Nvidia, Tesla, and the SPDR S&P 500 ETF Trust.
The New York Stock Exchange is preparing to launch new all-or-nothing options contracts, allowing investors to make binary bets on whether a stock or exchange-traded fund will close above or below a specified price. These contracts, expected to begin trading within days, are part of a broader trend of exchanges developing new products to meet demand for event-driven trading. The initial offerings will cover 12 securities, including major tech stocks like Apple, Nvidia, and Tesla, as well as the SPDR S&P 500 ETF Trust. NYSE is also awaiting regulatory approval for binary key performance indicator (KPI) options, which would settle based on reported company earnings metrics such as net sales or earnings per share. These European-style, cash-settled contracts will pay out $1 or nothing at expiration. Cboe Global Markets has also recently received approval for similar KPI-based contracts in collaboration with Robinhood.