Cboe’s new contracts pay $100 on a Russell 2000 call
The mini contracts carry a $28,600 notional, a tenth the size of Cboe’s full Russell 2000 options.
The hit
Cboe Global Markets launched binary options tied to the Russell 2000 Index on Monday, according to Yogonet. The MRUT contracts, trading under ticker MRTBW, pay $100 if the index settles above or below a set level & nothing if it does not.
Why it matters
It widens Cboe’s prediction-style product line beyond the S&P 500 to small-cap stocks, giving retail traders another short-dated, fixed-payout way to bet on index moves. Cboe says demand for zero-days-to-expiry Russell 2000 options has grown, & the binary format packages that volatility into a product cleared through the Options Clearing Corporation.
The record
| Contract notional (mini MRUT binary) | approximately $28,600 (Cboe) |
|---|---|
| Contract notional (full-sized Russell 2000 option) | approximately $281,200 (Cboe) |
| Average daily volume, traditional Russell 2000 options, first three quarters | 85,000 contracts, a record (Cboe) |
What happens next
Next: SEC-regulated contracts on corporate earnings metrics. Cboe’s KPI event contracts on selected companies are already on Robinhood.
Sources: Cboe expands prediction markets with Russell 2000 binary options
18+. Betting involves risk. If gambling is a problem for you or someone close to you, help is available.
Work with BH Group. Paid ads that get iGaming & crypto brands players & users, in the GEOs you choose. Get a plan
Discussion
Ask a question, add useful context or share a source. Keep it relevant & respectful.
Add a comment
Comments are reviewed before publication.