Cboe (BATS:CBOE) and Robinhood (NASDAQ:HOOD) plan to launch new earnings contracts in October, with Robinhood as the first retail broker to offer them.
Cboe announced at Robinhood's HOOD Summit Wednesday that it will launch SEC-regulated KPI binary options pending regulatory approval.
These contracts let traders bet directly on specific company metrics and corporate events, trading on Cboe's registered US securities exchange instead of the designated contract markets that host similar products today.
The initial rollout covers 23 of the most actively traded US stocks, and both companies will waive fees on the contracts through the end of 2026.
Cboe's Head of Retail Expansion JJ Kinahan said the contracts give investors a way to trade the individual metrics driving quarterly headlines.
Robinhood Chief Brokerage Officer Steve Quirk called it a more precise way for retail traders to act on anticipated company KPIs.
Why Cboe Is Building Out Clearing Infrastructure
As part of the launch, Cboe filed with the SEC to register its clearinghouse, Cboe Clear U.S., as a Covered Clearing Agency, a step needed to clear the new contracts if approved.
Cboe Global Head of Derivatives Rob Hocking said the move extends well beyond this one product launch, pointing to the company's broader plan to expand clearing capabilities into new asset categories over time, including the potential addition of tokenized binary security options down the road.
HOOD Technical Analysis: Key Levels to Watch
HOOD closed Wednesday down nearly 3%, rejecting near $123.49 and breaking below its 20-day EMA at $114.75.
Price still trades well above the 50-day, 100-day, and 200-day EMAs, keeping the broader uptrend from January's $64 low intact.
Meanwhile, RSI sits at 49.33, below its signal line, showing cooling momentum that looks more like digestion than a breakdown.
Key levels for HOOD:
- $114.75 - 20-day EMA, first resistance
- $123.49 - recent rejection high, next major target
- $108.50 - 50-day EMA, deeper support