Derivatives and stock exchange networks Cboe Global Markets and Robinhood Markets Inc. announced that Robinhood will soon launch Cboe index options on its platform.
Robinhood customers will soon be able to trade index options, including Cboe’s flagship S&P 500 Index (SPX) options, Cboe Volatility Index (VIX) options, Russell 2000 Index (RUT) options, and mini-SPX (XSP) options. Expands trading capabilities. That platform.
Cboe’s proprietary suite of index options gives Robinhood customers broad U.S. market exposure, hedges against volatility in the U.S. large-cap and U.S. small-cap markets, generates income, and leverages market movements on the Robinhood platform. This provides a potential new way to Index options include cash settlement (account is debited or credited with cash; there is no physical transfer of shares) and European-style exercise (option expires at expiration date; risk of early transfer) ).
“The rise of retail investors is one of the biggest forces reshaping today’s financial markets,” said Dave Howson, global president of Cboe Global Markets. “Individual traders have become more sophisticated in recent years, expanding their financial knowledge and trading experience, and are now seeking new opportunities to further enhance their trading strategies. Cboe’s proprietary index options are among the most popular in the world. As one of the most liquid, actively traded options products available, we believe Cboe’s index options will be a welcome addition to any retail trader’s toolkit. Robinhood is now offering index options to a growing user base, and we’re excited that even more investors can access the utility of our product. ”
Robinhood offers its customers the Cboe Global Indices Feed, which provides real-time index values for products such as SPX, VIX, and RUT options. Feeds may provide additional data to support customers in making their own trading decisions.
“Robinhood continues to deliver innovative and intuitive trading solutions that empower retail investors, and working with Cboe is perfectly aligned with that mission,” said Steve Quirk, Robinhood Chief Securities Officer. says Mr. “As our customers have grown, they have asked for access to more sophisticated assets, including index options, to help them diversify their portfolios and better manage risk. is a natural extension of our product offering and one of our most requested asset classes from our customers. This will be another powerful tool to help them navigate their financial future.”
“As we look ahead to 2024, one theme is clear: the need for robust risk management tools has never been greater, and institutional and individual investors, both domestic and international, are increasingly becoming an option. They’re starting to look at it,” said Kathryn Clay, global head of derivatives. At CBOE Global Market. “Investors can trade options on both longer and shorter time horizons to hedge event risk, systematically sell call and put spreads to earn income, or capture intraday movements. The US options market is more vibrant and robust than ever, and Cboe is a leader in the options industry. We remain committed to providing all investors with access to this deep and growing pool of liquidity.”
