NYSE bets on all-or-nothing options as event driven trading gains traction
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NYSE is preparing to launch binary return options that will let investors make all-or-nothing bets on whether stocks and ETFs finish above or below set prices. The exchange is also seeking approval for KPI options linked to company earnings metrics, expanding the range of event-driven trading products available to investors.
The New York Stock Exchange is preparing to launch a new type of options contract that will let investors make all or nothing bets on whether a stock or exchange traded fund finishes above or below a specified price, as demand grows for more targeted ways to trade market events.The binary return options are expected to begin trading within days, with 12 underlying securities initially, including Apple, Nvidia, Tesla and the SPDR S&P 500 ETF Trust. More securities are expected to be added over time.
As on 28 Oct 2026, 01:16 AM IST
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Xylem94.49(-12.70%)Boeing167.83(-10.87%)Valero Energy389.49(-8.73%)Coterra Energy32.56(-8.62%)NYSE targets demand for event based trades
The move comes as options trading and event based contracts have expanded rapidly, encouraging exchanges to develop products aimed at investors seeking more precise ways to express views on individual stocks or broader markets."We've seen this incredible growth in the US options market over the last several years. When we look inside that volume growth, there's a lot of interest in newer ways to trade or newer products to trade," Kevin Tyrrell, chief product officer at NYSE, told Reuters.
Unlike traditional options, the new contracts are designed around a simple outcome. They would pay $1 or nothing at expiration depending on whether the underlying security finishes above or below the contract's strike level.
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NYSE also seeks approval for earnings linked options
NYSE is also awaiting approval from the US Securities and Exchange Commission for another product that would allow investors to trade directly on company performance metrics.The binary KPI options would pay investors based on whether a company reports a specified result above or below a set threshold. The contracts could cover metrics including net sales, earnings per share, cloud computing revenue and vehicle production.
The cash settled, European style contracts could only be exercised at expiration, with investors receiving either $1 or nothing depending on the reported result.
Cboe Global Markets recently received approval for similar KPI based contracts in partnership with Robinhood, highlighting the wider push by exchanges to capture demand for event driven trading, Reuters reported.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
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Figures reflect the source report and its stated period. This article is for information and is not investment advice.



