Quick wins for a faster PC:
Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Robinhood plans to offer Cboe-listed binary options tied to company financial and operating metrics, but the contracts have not been established as approved or live. Cboe announced the proposal on September 30, 2026, with an October launch plan subject to regulatory review. Robinhood says access will require options approval and roll out to eligible customers in the coming weeks.
What are Robinhood earnings contracts?
Robinhood’s “earnings contracts” are proposed listed options tied to a company’s reported key performance indicator (KPI), such as earnings per share, revenue, segment revenue, operating margin, or a company-specific operating statistic. Unlike a stock option, settlement would depend on whether the reported metric meets a stated threshold—not on the company’s share price. Cboe’s planned initial offering covers KPIs from 23 U.S.-listed companies. Cboe’s September 30 announcement describes the planned partnership and launch; its pre-launch hub describes the product as subject to approval.
![The Options Trading Bible [50 in 1]: Unlock Proven Tactics to Read Markets, Spot High-Probability Entries, and Manage Risk Like a Pro. For Beginners Seeking Clarity, Confidence, and Consistent Profits](https://m.media-amazon.com/images/I/51BG0YDBN-L._SL160_.jpg)
As an Amazon Associate I earn from qualifying purchases.
How do Cboe KPI options work?
The contracts have a binary payout at expiration under Cboe’s proposed terms: a call pays $1.00 if the reported KPI is equal to or above its strike; a put pays $1.00 if the KPI is below its strike. Otherwise, the payout is $0.00. Robinhood’s announcement likewise describes a maximum payout of $1.00 per contract and a multiplier of 1. The potential payout is not a forecast of likely profit: the buyer’s result also depends on the price paid, fees, and whether the contract settles in the money.
Cboe’s September 2, 2026 FAQ gives a proposed trading price range of $0.01 to $1.03, in $0.01 increments. The exchange says the upper limit is intended to account for liquidity-provider transaction costs. These are proposed specifications, not assurances about eventual market prices, execution, or final terms.
#1 Best Overall
Trading and exercise
The proposed contracts are European-style, which means they cannot be exercised early. Cboe says a holder may close a position before expiration with an offsetting trade during regular trading hours. Its FAQ proposes initial support for limit and stop-limit orders with Day or Immediate-or-Cancel time-in-force; market, Good-til-cancelled, and Good-til-date orders are not listed as supported at launch.
How are the KPI and settlement date determined?
Cboe’s FAQ says the settlement figure is taken from the KPI disclosed in the issuer’s earnings-related SEC filing for the relevant period. The usual source is an earnings press release furnished as an exhibit to Form 8-K; if that is unavailable, Cboe says it uses Form 10-Q or Form 10-K. The proposed rule filing also describes the KPI as one disclosed in an earnings-related SEC filing.
Rank #2
Expiration is linked to the issuer’s earnings disclosure date for the reporting period, rather than automatically falling on the last day of a quarter. If the precise reporting date is not known when a contract is first listed, Cboe says it may use a placeholder and later update it to the actual disclosure date. Under the FAQ’s proposed schedule, AM-settled contracts stop trading at 3:00 p.m. Central Time on the business day before expiration; PM-settled contracts stop at 3:00 p.m. Central Time on the expiration date.
The Tool Desk
Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Contracts that meet their payout condition are automatically exercised, and cash settlement normally follows on the next business day, according to Cboe’s FAQ. Once determined, the settlement value is final; a later restatement or correction does not change it. If the KPI is delayed or unavailable, settlement may also be delayed under clearing rules. Because trading may already have stopped, a holder could be unable to close the position while waiting for settlement.
Are Robinhood KPI options approved, and when can customers trade them?
No approval or start of trading is established by the announcements cited here. Cboe and Robinhood described an October 2026 launch plan conditional on regulatory review. Cboe’s FAQ says its product filing requires SEC review and approval before listing or trading, and Cboe Clear U.S. (CCUS), the proposed clearing entity, has also applied for temporary registration as a securities clearing agency. Cboe’s hub identifies itself as pre-launch and says the relevant exchange and clearing filings require approval.
Robinhood’s September 30, 2026 newsroom post says the contracts will be offered through Cboe and rolled out to eligible customers in the coming weeks. It does not give a universal availability date. Robinhood says customers will need options approval, so the planned product is not described as available to every account holder.
How do KPI options differ from event contracts and ordinary options?
Robinhood’s August 5, 2026 comment letter to the SEC argues that the proposed contracts belong under the SEC securities framework, rather than the CFTC framework used for event contracts. The letter is an interested party’s argument in support of Cboe’s proposal, not a regulatory decision or an independent assessment of risk. Both product types can express a view on a discrete outcome, but the proposed KPI contracts are listed securities options whose result is tied to an issuer-reported metric.
They also differ from ordinary equity options in what determines settlement: a KPI option would use a specified company metric, while a standard equity option is tied to the underlying stock price. Robinhood argues in its letter that standard options reflect factors beyond an individual KPI. The proposed KPI contracts also have their own filing-based settlement source, expiration timing, and binary payout, so they should not be treated as interchangeable with either stock options or event contracts.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What should investors weigh before considering them?
- All-or-nothing payout: At expiration, the proposed payout is $1.00 or $0.00, leaving no partial payout if the reported metric misses the threshold.
- Filing and timing risk: The final outcome depends on the specified reported KPI and applicable filing. Earnings dates can move from an initial placeholder, and delayed reporting can postpone settlement.
- Limited ability to exit: Early exercise is not permitted. A holder can seek to close by offsetting trade only while trading is open; settlement delays may occur after trading has stopped.
- Regulatory and product uncertainty: Approval, availability, and final terms were unresolved in the cited announcements. The proposed price range and launch plan may not describe the eventual live product.
Cboe characterizes the product as complex and suitable only for sophisticated market participants. Robinhood’s SEC comment letter presents possible uses such as expressing a view on a particular earnings metric or hedging short-term KPI exposure while holding stock; those are proponents’ stated potential uses, not guaranteed outcomes or evidence that the contracts reduce risk for every investor.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
