What are KPI Binary Options?

KPI Binary Options are exchange-listed, cash-settled option contracts whose payout is based on a specific company Key Performance Indicator (KPI) — such as Earnings Per Share, Revenue, or another disclosed financial or operating metric — rather than a stock price. Each contract pays $1.00 if the reported KPI meets the stated condition at expiration, or $0.00 if it does not.

• Call options pay $1.00 if the reported KPI is equal to or greater than the strike price at expiration; otherwise $0.00.
• Put options pay $1.00 if the reported KPI is strictly less than the strike price at expiration; otherwise $0.00.

KPI Binary Options are listed and traded on Cboe Options Exchange and cleared by Cboe Clear U.S. (CCUS), which acts as the central counterparty guaranteeing performance to both buyers and sellers. All KPI Binary Option symbols begin with the letter "K" (e.g., KAMSF = Microsoft Earnings Per Share, KBMET = Meta Revenue). The listing and trading of KPI Binary Options (with the terms described on this page and in the resources listed below) on Cboe and clearing of KPI Binary Options by CCUS is subject to regulatory review and approval of all applicable Cboe and CCUS filings.

At launch, KPI Binary Options will be available on KPIs from approximately 23 public companies, spanning metrics including Earnings Per Share, Revenue, Segment Revenues, Operating Margins, and company-specific operational statistics. A supplemental reference data file mapping each symbol to its company, KPI description, scale, and expiration details will be available on Cboe.com (see KPI Binary Options Technical Integration Specification in the Resources section below for details).

Resources