The move is expected to provide Robinhood customers with expanded trading opportunities and access to a wider range of investment products.

Cboe’s index options, including the S&P 500 Index (SPX), Cboe Volatility Index (VIX), Russell 2000 Index (RUT), and Mini SPX (XSP), offer investors the ability to gain exposure to the US market, hedge against volatility, generate income, and capitalize on market movements.

The options are cash-settled and European-style, with the options expiring on their expiration date and no risk of early assignment.

“The rise of the retail investor is one of the greatest forces reshaping financial markets today,” said Dave Howson, Global President at Cboe Global Markets. “Cboe’s proprietary index options are among some of the world’s most popular, liquid and actively traded options products, which we believe will be a welcome addition to the retail trader’s toolkit.

Steve Quirk, Chief Brokerage Officer at Robinhood, noted that the addition of index options to Robinhood’s platform has been a highly requested feature by customers.

The integration of Cboe’s index options comes amid a surge in options trading activity. In 2023, total US options volumes exceeded 11 billion contracts, marking a significant increase compared to previous years.

Cboe’s proprietary products have also seen growing investor interest, with average daily volumes reaching a record high in the third quarter of 2024.

“Robinhood continues to deliver innovative and intuitive trading solutions that empower retail investors, and our collaboration with Cboe aligns perfectly with that mission,” said Steve Quirk, Chief Brokerage Officer at Robinhood. “Adding index options to Robinhood is a natural extension of our product offering.”

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