Cboe Seeks Approval for Earnings-Based All-or-Nothing Options

Cboe Global Markets Inc. is seeking US regulatory approval to list all-or-nothing options tied to corporate earnings results, allowing traders to wager on figures ranging from SpaceX revenue and Nvidia data-center sales to JPMorgan Chase & Co.’s credit-loss provisions.

The proposed product, known as earnings event options, would settle based on whether a specific earnings metric meets a predetermined threshold. Unlike traditional options that derive value from an underlying security's price, these binary options pay out a fixed amount if the condition is met, or nothing if it is not. This structure resembles prediction market contracts, offering a direct way to express views on earnings outcomes. For equities traders, the introduction of such instruments could provide new hedging and speculative tools, potentially increasing market efficiency around earnings announcements. Live stock prices and charts on NowPrice reflect how markets currently price in earnings expectations, and the arrival of these options may alter trading dynamics during earnings season.

The filing marks a significant step in the evolution of event-driven derivatives. If approved, Cboe would join a growing trend of exchanges offering binary options on economic and corporate events. The US Securities and Exchange Commission will review the proposal, and market participants will watch closely for any regulatory hurdles. The outcome could set a precedent for how prediction market-style products are treated in the US equity derivatives space, with implications for volatility and liquidity around earnings releases.