Charles Schwab + CBOE create an options prediction market, betting on the rise or fall of the S&P 500. Is this considered traditional finance DeFi-ification or regulatory arbitrage? The Plus Zone settlement mechanism is somewhat interesting, but do retail investors really understand how to play with these structured products?

CryptoWorld News, Charles Schwab is collaborating with the Chicago Board Options Exchange (CBOE Global Markets) to develop options-based contracts that allow clients to bet "yes" or "no" on the performance of the S&P 500 index. The product pays a fixed cash amount or no return depending on whether the index closing price is above a target level. Charles Schwab and CBOE plan to use CBOE's "Plus Zone" feature to enable traders with predictions close to the final result to earn partial gains. These products are expected to be launched in the coming months.