Contact Us

User acknowledges that it has reviewed the User Agreement and the Privacy Policy governing this site, and that continued use constitutes acceptance of the terms and conditions stated therein.

Binary Options Product Specifications


A binary option is an "all or nothing" option. A binary call option (or Finish High ByRD) pays a fixed cash settlement amount if at expiration the settlement value is above the strike price and would be worthless if settlement is below the strike price. Conversely, a binary put option (or Finish Low ByRD) pays a fixed cash settlement amount if at expiration the settlement value is below the strike price and would be worthless if settlement is above the strike price. Exercise and assignment activity results in the exchange of $100. No exchange of actual shares or units of the underlying occur.

Unit of Trade

One contract is worth either $0 or $100 at expiration.

Premium Quotations

Bids and offers are expressed in $.01 increments and range from $0.00 to $1.00. For example, a premium bid of $0.10 would mean an investor selling would receive $10.00 per contract sold before commissions and fees.

Strike Price Intervals

Strike prices are generally listed in 1-point increments for BVZ, 1-point increments for ByRDs, and 50-point increments for BSZ.

Exercise Style

European-style. Binary options may be exercised only at expiration. Option writers are therefore not subject to early assignment. In-the-money options will be exercised automatically in lieu of other instructions and will result in a transfer of $100 from the seller to the buyer.

Expiration Months

Three consecutive, near-term months are available for trading. ByRDs qualify for weekly expiration.

Expiration Dates

BVZ options expire on the same day as the amount that VIX settlement value is determined. BSZ options will expire on the date listed on the contract.

The expiration date for ByRDs will be the same as that of the standard listed option on the same underlying.

Expiration Settlement Price

Binary index options will settle based on the same settlement value that the standard underlying index options settle against. Specifically, on expiration, VIX binary options will settle against VRO. SPX binary options will settle against SET. If, at expiration, the price of the underlying security closes above the selected strike price, the call buyer receives a set payout per contract. If the underlying security closes at a price that is below the strike price on the expiration date, the call buyer receives nothing. As with traditional options, a binary option position may be liquidated (bought or sold to close) prior to expiration. Investors should be aware of the last opportunity to trade these products before the settlement value is derived.

ByRDs will settle based on the NYSE ByRD Settlement Value for all trades in the underlying security executed during the last trading days regular trading session. The full day NYSE ByRD Settlement Value will be calculated continuously throughout the last trading day prior to expiration (normally a Friday). The running NYSE ByRD Settlement Value will be disseminated at least every 15 seconds using the unique symbol used to distinguish the ByRDs from regular options on the same underlying security.

Prospective investors are encouraged to review the complete VIX Binary Options and SPX (S&P 500) Binary Options product specifications on the CBOE website, and the ByRDs product specifications from the NYSE website.

Position Limits

Binary option positions limits are 1,500,000 contracts on the same side of the market. Investors may check Position Limit reports from OCC's website for more information.

ByRDs position limits are 25,000 contracts, existing hedge exemptions will apply, facilitation exemptions will apply and position will not be aggregated with standard listed option positions.

Minimum Customer Margin

Long positions must be paid in full. Short positions will require the seller to post the difference between the premium received and $100 per contract sold short. The premium must remain in the account.

Trading Hours

9:30 a.m. to 4:15 p.m. ET
The same trading hours as the standard listed options on the same underlying security.