Financial services firm Charles Schwab is moving into the prediction market space.

According to sources familiar with the matter, the brokerage is collaborating with Cboe Global Markets to introduce "all-or-nothing" option contracts. These will enable clients to place binary "yes or no" bets on the performance of the S&P 500 index.

These contracts differ slightly from those offered by platforms like Kalshi or Polymarket, which list futures contracts rather than options. However, the fundamental operation of these binary options is the same: they either pay out a fixed cash settlement or pay nothing at all, depending on whether the index closes above or below a target price.

The sources indicate that Charles Schwab plans to make these contracts available to clients in the coming months. Furthermore, the firm is also launching a similar options product featuring a Cboe function called "the plus zone." This feature allows traders to receive a partial payout if their prediction of the market's general direction is substantially correct, even if the index's closing price does not match their forecast exactly.