Charles Schwab is working with Cboe Global Markets on a new options product tied to the S&P 500, according to a Wall Street Journal report citing people familiar with the matter. The planned launch would mark Schwab’s first entry into prediction markets, letting customers make yes-or-no calls on whether the index finishes above or below a preset level.
The Journal said the feature is expected to reach Schwab customers in the coming months. The structure differs from the contracts commonly seen on platforms such as Polymarket and Kalshi. Those venues usually offer futures-style products linked to event outcomes, while Schwab’s version would operate more like a binary option: the contract would either pay a fixed cash amount or expire worthless depending on where the S&P 500 closes relative to a target price.
A design built around measurable market outcomes
Schwab and Cboe are also discussing a related product connected to a Cboe feature called Plus Zone. Under that setup, traders could still receive a partial payout when their call lands close to the final result, even if the index does not finish exactly at the chosen level. That would make the payoff structure less rigid than a standard all-or-nothing contract.
The companies have also talked about extending the lineup beyond the S&P 500 to other indexes or financial benchmarks. Even so, Schwab is said to be focusing on contracts tied to objectively verifiable financial-market outcomes, rather than products linked to politics, sports, or other real-world events.
Another large entrant joins a crowded field
If launched, Schwab would become the latest company to enter a prediction market sector that has been drawing more attention from traders. Platforms including Kalshi and Polymarket have gained traction by offering contracts on events ranging from elections to economic data releases.
Crypto and retail brokerage firms have also moved in. The report noted that Coinbase (COIN) and Robinhood (HOOD) have recently rolled out prediction market offerings. Schwab’s choice to start with S&P 500 event-based options shows how the category is spreading beyond native prediction platforms into mainstream brokerage channels.