Cboe launches Russell 2000 binary options with $100 payouts

Cboe has launched binary options on the mini-Russell 2000 Index, giving traders a yes-or-no position on where the small-cap benchmark finishes. The exchange’s 9 November announcement says trading began that day under the MRTBW ticker.

The contracts pay $100 or $0 at expiry. Cboe says it will list PM-settled expirations for the same and next trading day, with clearing through the Options Clearing Corporation. The underlying mini index is one-tenth the value of the Russell 2000.

A fixed payout on the closing level

For a contract predicting a close at or above 280, a settlement value of 280 or higher produces the $100 payout. A lower value produces no payout. The amount paid to buy the option must be deducted when calculating a buyer’s profit.

Cboe’s linked contract specifications distinguish PM-settled MRTBW from AM-settled MRTBX. That document remains marked draft. The dated launch release identifies MRTBW, so it should not be read as confirmation that both expiration types began trading.

The launch adds small-cap index outcomes to Cboe’s existing large-cap binary-options offering. The release gives no initial trading-volume figure or complete list of participating retail brokers.

These index products are separate from Cboe’s planned company-KPI contracts, which reference corporate results. MEMX has also proposed binary options on company metrics, adding another securities-exchange initiative alongside the event contracts offered on CFTC-regulated venues.