$100 or Zero: Cboe Launches Binary Options on Mini Russell 2000
Key Facts
Cboe Global Markets announced the launch of trading in binary options on the Mini-Russell 2000 Index on November 9, 2026, under ticker MRTBW, adding short-term directional exposure to its prediction markets suite. The contracts offer a yes-or-no position on a specified index level, paying $100 or zero at settlement depending on whether the condition is met. The product is based on MRUT, a mini index equal to one-tenth the size of the Russell 2000, according to the company. The suite is thus expanding from contracts linked to the Mini-S&P 500 to a product targeting small-cap stocks. Cboe said the contracts give traders a way to take directional positions on that segment; the announcement did not describe the launch as a driver of liquidity or trading volume.
Cboe explained the settlement mechanism with an example at 280 points: a contract requiring a close at 280 or higher pays $100, while it pays zero if the index closes below that level. The contracts settle in the evening and expire either on the same trading day or the following trading day. MRTBW options are also centrally cleared through the Options Clearing Corporation, according to the company. The payout structure determines the contract's outcome at settlement based on the specified level, while the trader's return is tied to the price paid for the contract; the announcement did not give a standard purchase price. This places the product among short-term options on small-cap index performance, with a near-term, defined expiration.
The Russell 2000 comprises about 2,000 of the smallest companies and measures the small-cap segment of the U.S. stock market, according to Cboe. The index is part of the Russell 3000, which was designed to represent about 98% of the investable U.S. stock market. A Cboe official said small-cap stocks are closely followed by retail investors and that the Russell 2000 has traditionally been more volatile than other broad benchmarks. The official added that this volatility gap was one reason demand for same-day-expiration index options has grown in recent years. This context helps explain the choice of a mini index for short-term contracts, without providing a measure of the new product's effect on trading or liquidity.
The new binary contracts build on existing activity in Cboe's traditional Russell 2000 options. Average daily trading volume in those options was 85,000 contracts during the first three quarters, according to the company's announcement. Cboe said in November 2025 that average daily trading volume in RUT options had reached about 75,000 contracts through the end of that month, up 66% from the 2022 average. The figures cover different periods and traditional products, and do not represent trading in the binary contracts that began on November 9, 2026. More broadly, the company announced in November 2025 plans to extend Russell 2000 options trading hours to nearly 24 hours a day, five days a week, starting February 9, 2026.
The index has recorded changes in its size and performance in recent years, according to data from LSEG and FTSE Russell. The Russell 2000 surpassed its previous peak, set in November 2021, in 2025, then closed at new record levels above 2600 points in early January 2026. In the index reconstitution in June 2026, its total market capitalization rose from $2.7 trillion in the 2025 reconstitution to $3.5 trillion in 2026. It also outperformed the Russell 1000 for the year ended on the ranking day of April 30, 2026. The Russell 3000's market capitalization increased 29%, from $58.4 trillion in the 2025 reconstitution to $75.6 trillion on the 2026 ranking day. These figures provide context for the growth of the small-cap segment within the U.S. stock market, while Cboe shares closed at $353.27 on November 6, 2026, according to EL7 data.
The Russell 2000 product follows the launch of Cboe Predicts' first products in June 2026, binary options based on the Mini-S&P 500 Index and listed under tickers XSPBW and XSPBX. At the launch, Cboe said the contracts were available through Interactive Brokers and that it expected to make them available later through Charles Schwab and additional retail brokerage platforms. It also said Mini-S&P 500 contracts would trade under the same regulatory framework that applies to U.S.-listed options. In July 2026, the U.S. Securities and Exchange Commission approved a Cboe rule change related to binary options, according to the agency's record for filing SR-CBOE-2026-032. Cboe said its prediction markets suite will soon include certain corporate earnings metrics subject to agency regulation, adding another category to outcomes linked to small- and large-cap stocks.