Cash-Settled Options for Options Traders

What Does “Cash-Settled” Mean — Why It Matters

The term cash-settled may seem simple—it has “cash” in the name—but there’s more behind it. Here’s what you need to know.

Traditional stock options usually settle into shares. When you exercise an option—such as a call—you receive shares of the underlying stock.

Enter Nano Options: Nano options take a different approach. Instead of shares, any gains are settled in cash. How is that possible? Because Nano options are tied to the value of the S&P 500 Index*.

When you trade options on an index, cash settlement is one of the key benefits. It provides flexibility. You can use your funds however you choose, including reinvesting in new opportunities.

Welcome to Nano options: a modern, streamlined way to trade.

^{*Nanos trade on Cboe as a $1 multiplier option (compared to the $100 multiplier for standard options) on the Mini-S&P 500 Index, which represents one-tenth the value of the S&P 500 Index.}

^{There are important risks associated with transacting in any of the Cboe Company products discussed here. Before engaging in any transactions in those products, it is important for market participants to carefully review the disclosures and disclaimers contained at: https://www.cboe.com/us_disclaimers/. These products are complex and are suitable only for sophisticated market participants. In certain jurisdictions, Cboe Company products are only permitted for investment professionals, certified sophisticated investors, or high net worth corporations and associations. These products involve the risk of loss, which can be substantial and, depending on the type of product, can exceed the amount of money deposited in establishing the position. Market participants should put at risk only funds that they can afford to lose without affecting their lifestyle. © 2025 Cboe Exchange, Inc. All Rights Reserved.}