According to The Wall Street Journal, Charles Schwab is working with Cboe to launch all-or-nothing options contracts. The planned product would allow clients to place “yes or no” trades around the performance of the S&P 500 index, with the outcome depending on whether the index meets the contract’s stated condition. People familiar with the matter said Schwab plans to make these contracts available to clients in the coming months.
Different structure from existing prediction-market platforms
The people familiar with the matter said the contracts planned by Schwab and Cboe differ slightly from the prediction-market contracts offered by platforms such as Kalshi or Polymarket. Kalshi and Polymarket list futures contracts, while Schwab’s planned product is structured as options contracts. Functionally, however, the products are similar because they are tied to whether a defined outcome occurs and are settled in cash.
Under the structure described in the report, the binary options would have a straightforward payout mechanism. If the S&P 500 closes above or below a target price, the contract pays a fixed cash-settlement amount. If the condition is not met, it pays nothing. The design turns the index’s closing level into a yes-or-no trading outcome for clients using Schwab’s channel.