Cboe Global Markets is preparing to launch a new category of binary options tied to company-specific financial and operational metrics, offering retail investors a more targeted way to trade corporate performance.

The exchange plans to introduce contracts covering 23 publicly traded companies, including metrics such as earnings per share, revenue and net income, alongside company-specific indicators such as Nvidia’s data center revenue, Amazon’s AWS revenue and Tesla’s vehicle production.

On October 23, Cboe announced that Cboe Clear U.S. (CCUS) had received temporary registration from the Securities and Exchange Commission (SEC) to operate as a Covered Clearing Agency, expanding its authority to clear securities products alongside futures and swaps. The new KPI contracts are expected to launch on Cboe Options Exchange and become available through Robinhood in the fourth quarter of 2026.

In an interview with Traders Magazine, JJ Kinahan, SVP, Head of Retail Expansion and Alternative Investment Products at Cboe Global Markets, discussed growing demand for more granular trading opportunities, the role of Robinhood as the initial retail distribution partner, the importance of SEC oversight and potential expansion into additional products.

What investor demand are you seeing for company-specific KPI contracts, and why launch them now?

With the rise of options trading and prediction markets, investors are increasingly looking for more ways to trade and manage risk. Cboe’s KPI contracts add the ability to trade the specific company metrics investors already follow closely on a quarterly basis. It gives the investor a way to be more granular in their trading and eliminate the risk of movements on analyst expectations rather than the individual components of earnings that move the stock.

We are excited to have received SEC regulatory approval of the products and the temporary registration of Cboe Clear U.S. (CCUS) as a Covered Clearing Agency to clear these products.

How will the initial KPIs be selected, and which company metrics do you expect to attract the most interest?

We plan to list KPIs for 23 public companies at launch. We chose many of the most tracked and traded names in U.S. equities and options, focusing on metrics companies report each quarter.

These include Earnings Per Share, Revenue and Net Income, along with company-specific metrics like Nvidia’s Data Center Revenue, Amazon’s AWS Revenue, and Tesla’s Model 3/Y Production. One company metric that will be particularly interesting to track given the launch of the new iPhone is Apple’s iPhone Net Sales.

How do these contracts differ from event contracts currently offered on prediction markets?

The KPI binary options will be options listed on Cboe’s registered U.S. securities exchange and regulated by the SEC. They will trade within the same framework as listed options and be subject to the protections of the U.S. securities laws and regulations.

Why was Robinhood chosen as the first retail broker to offer the products, and what role will it play in building adoption and liquidity?

Robinhood’s a great partner of Cboe’s and one of the leading retail brokers in the industry in terms of options volume. Their reach puts these products in front of an engaged retail trader base.

I was at Robinhood’s annual HOOD Summit last month in Houston and there was a lot of excitement around what is coming next. We plan on expanding to other brokers just as we do in any other Cboe-listed product.

Why was it important to structure these as SEC-regulated securities products rather than CFTC-regulated contracts?

We believe products that are listed directly on a securities index or corporate performance metrics should fall under the SEC’s jurisdiction. The corporate performance metrics are pulled directly from the public company’s SEC filings.

That is, the issuers have made the affirmative decision to disclose these metrics to their investors because they deem that the metrics are material to their actual reported financial or operating performance. We think that’s important.

The SEC has long-standing experience protecting investors and enforcing rules against insider trading, and equity and options investors are used to this robust framework.

How could the offering expand beyond the initial 23 companies, including into tokenized binary security options?

We will closely track potential new contracts and companies to list based on client demand. The enhanced clearing capabilities of CCUS will allow us to explore new product categories.