Cboe introduces new type of options for retail traders – Nanos

Cboe Global Markets, Inc. has revealed Nanos, its new options contract designed to simplify options trading for retail traders, allowing them to start small and grow with their trading confidence.

According to Cboe’s announcement, Nanos is set to launch on the S&P 500 Index in first-quarter 2022. The settled Nanos S&P 500 contract is a fraction of the size of standard options contract. It is at 1/100th the size of an XSP1 option. Nanos S&P 500 (ticker symbol: NANOS) is a response to the growing demand for simpler, cost-effective way to gain broad exposure to the US equity market. It helps traders focus on understanding the market and refining their trading strategies.

The S&P 500 Index (SPX) options market has served primarily institutional investors well for years. The higher price of a standard option contract can be a barrier to entry for retail traders and the smaller size of Nanos aims to help beginners gain confidence as they learn and apply basic trading strategies, utilize simplified analytics when identifying and sizing trades, and continue on a learning path.

Cboe Global Markets

Ed Tilly, Chairman, President and CEO of Cboe Global Markets, said:

Edward T. Tilly

Edward T. Tilly

Our goal with Nanos is to use education to inspire and empower new market participants to pursue a sustainable financial future. We believe Nanos are more appropriately sized for retail traders and enable traders to better express their opinions on market movements at a comparatively lower premium price. Through our Nanos S&P 500 product, we are broadening access to a greater universe of traders who can enjoy the potential benefits options provide, including hedging, asset allocation and income generation strategies.

Cboe Options Institute plans to release a new options introductory curriculum tailored to retail traders to go with the launch of Nanos.

Rob Hocking, Head of Derivatives Strategy at Cboe, added:

Rob Hocking, Cboe

Rob Hocking

Cboe Global Markets has a long-standing commitment to education, which better enables all types of investors to access our markets, understand our products and potentially benefit from our solutions. We are continuously evolving our education programs to offer more retail-centric content through the Options Institute, and we are thrilled to welcome a new generation of investors to options trading with the launch of Nanos.

Earlier in October, Cboe revealed its entrance in the digital asset space with the acquisition of ErisX, a US-based digital asset spot market.


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