NYSE to Launch All-or-Nothing Options on Major Stocks, Seeks Approval for Earnings-Based Contracts

The New York Stock Exchange is set to launch a new type of options contract allowing investors to make all-or-nothing bets on the closing price of specific stocks and exchange-traded funds, according to a Reuters report. The move is part of a broader push by exchanges to capitalize on surging demand for event-driven trading products from both retail and institutional investors.

Binary Options to Launch Imminently

The new products, called binary return options, are expected to begin trading within days. They will let investors bet on whether an underlying security will close above or below a predetermined price, with a fixed payout or a total loss.

The initial lineup will include contracts on 12 underlying securities, including:

• Apple (AAPL)
• Nvidia (NVDA)
• Tesla (TSLA)
• SPDR S&P 500 ETF Trust (SPY)

"We’ve seen this incredible growth in the US options market over the last several years," said Kevin Tyrrell, chief product officer at NYSE, in a statement to Reuters. He noted "a lot of interest in newer ways to trade or newer products to trade."

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Earnings-Based Contracts Await SEC Nod

In a separate initiative, NYSE is awaiting approval from the U.S. Securities and Exchange Commission (SEC) for another binary product tied to corporate performance. These key performance indicator (KPI) options would allow investors to trade directly on company-reported metrics rather than share price movements.

Unlike traditional options, these cash-settled, European-style contracts would pay out either $1 or nothing at expiration. The outcome would depend on whether a company reports a specific result, such as net sales, earnings per share, or vehicle production, above or below a certain threshold.

Competitive Exchange Landscape

The NYSE's push into event-based contracts reflects a growing trend among major exchanges. Rival Cboe Global Markets recently received regulatory approval for similar KPI-based options, which it developed in partnership with the trading platform Robinhood. These new offerings are designed to give investors more precise tools to express market views and manage risk around specific events like earnings announcements.