A  A  A     

Binary Options (BVZ)

Binaries   Binaries  
BVZ 12.90 -0.68
BSZ 2063.50 10.75
SPX 2063.50 10.75
VIX 12.90 -0.68
BXM 1065.61 -5.33
Delayed Quotes

CBOE Binary Options are a pure and simple way to trade based on your opinion of where a market is headed over a certain period of time.

Binary Options Video:

Click here to view more CBOE-TV
They are contracts that, at expiration, pay out a pre-determined, fixed amount or nothing at all. The payout amount for CBOE Binary options is $100.

Like traditional options, Binary Options are based on an underlying security, have various strike prices to choose from as well as various expirations. CBOE lists both call and put Binary Options. If, at expiration, the price of the underlying security closes at or above the selected strike price, the buyer of a call Binary Option receives $100 per contract. If the underlying security closes at a price that is below the strike price on the expiration date, the buyer receives nothing.

In the case of put Binary Options, the put buyer receives $100 per contract if the underlying security closes below the strike price at expiration, and nothing if the underlying security closes at or above the strike price at expiration.

As with traditional options, a Binary option position may be liquidated (bought or sold to close) prior to expiration.

The price of a Binary Option usually reflects the perceived probability that the underlying security price will reach or exceed (for call Binary Options) or fail to reach or exceed (for put Binary Options) the selected strike price at expiration. The cost of CBOE Binary Options will normally be quoted at a price between zero and $1 (which equates to $1 to $100 per contract). Buyers of Binary Options pay for the contract at the time of purchase.

"CBOE's binary options provide a straightforward way for investors to act on their views of two of the most closely followed indexes in the world, the S&P 500 and the CBOE Volatility Index,"

"These products will appeal to the broad range of market participants, including individual investors, hedge funds and institutions, who have an opinion, one way or another, on future price movements in SPX or the VIX."

CBOE Chairman and CEO William J. Brodsky

CBOE offers Binary Options on the S&P 500 Index (SPX) and the CBOE Volatility Index (VIX). The ticker symbols for these Binary contracts is BSZ and BVZ respectively. Expiration dates and settlement values are the same as for traditional options.

CBOE Binary Options are cleared through the Options Clearing Corporation (OCC) and can be traded in a regular securities account that is approved to trade options.

Links to More Information

Jon Najarian discusses Binary options on CNBC
SPX Binary Contract Specifications
VIX Binary Contract Specifications

Copies of the ODD are available from your broker, by calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606. The information on this website is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in the website information. No statement within the website should be construed as a recommendation to buy or sell a security or to provide investment advice. The inclusion of non-CBOE advertisements on the website should not be construed as an endorsement or an indication of the value of any product, service, or website. The Terms and Conditions govern use of this website and use of this website will be deemed acceptance of those Terms and Conditions.

CBOE Volatility Index (VIX)