NYSE to launch binary return options for 12 underlying securities

NYSE to launch binary return options for 12 underlying securities

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“We’ve seen this incredible growth in the US options market over the last several years,” said Kevin Tyrrell, chief product officer at NYSE.

The New York Stock Exchange is preparing to launch a new class of options contracts that allows investors to make all-or-nothing bets on whether a specific stock or exchange-traded fund will close above or below a set price, Reuters reported on October 27, 2026. The shift arrives as the broader market experiences a sharp surge in options trading and event-driven financial products, pushing major exchanges to design precise instruments for both retail and institutional participants.

Binary Return Options Debut With 12 Securities

Binary return options are scheduled to begin trading within days, featuring a lineup of 12 underlying securities. The initial group includes corporate giants such as Apple, Nvidia, and Tesla alongside the SPDR S&P 500 ETF Trust, with additional assets slated for integration over time. These contracts give market participants direct tools for managing risk and expressing directional views without holding the underlying equities themselves.

Seal of the united states securities and exchange commission svg

Tyrrell described the underlying volume surge that fueled the new product line by noting that when looking inside that volume growth, there is a lot of interest in newer ways to trade or newer products to trade.

Contrasting Traditional Stock Options

Traditional stock options grant holders the right, but not the obligation, to buy or sell an underlying asset at a predetermined price over a specified timeframe. In contrast, the upcoming NYSE contracts operate on a binary framework. Beyond these price-pegged instruments, the exchange is actively awaiting approval from the US Securities and Exchange Commission for a second suite of products tied directly to company key performance indicators.

Settling Trades on Corporate Metrics

These KPI options would bypass traditional share price fluctuations entirely. Instead, they would settle based on whether corporations report specific financial metrics—such as net sales, earnings per share, cloud-computing revenue, or vehicle production numbers—above or below a designated threshold.

The cash-settled, European-style contracts would function exclusively at expiration, paying either one dollar or nothing depending on the final reported corporate figures.

Industry-Wide Push for Structured Products

The push by the New York Stock Exchange follows parallel moves across the industry. Cboe Global Markets recently secured approval for similar KPI-based contracts developed in partnership with online brokerage platform Robinhood. As regulatory frameworks evolve to accommodate structured event-driven products, trading venues are rapidly expanding their offerings to capture surging demand for specialized financial instruments.

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