Cboe to Launch Mag10 Futures and Options for Tech Stock Trading

Cboe Global Markets is launching futures and options based on the Cboe Magnificent 10 Index, which includes mega-cap tech stocks like Broadcom, Palantir, and AMD. The index makes up 38% of the S&P 500's market value. The move aims to attract tech traders and compete with CME Group. Cboe plans to begin offering monthly expiring contracts in Q4 2025 and add daily expiring contracts in 2026. The move follows Cboe's plan to list perpetual Bitcoin and Ether futures.

Cboe Global Markets, Inc. (Cboe: CBOE) has announced plans to launch futures and options on the Cboe Magnificent 10 Index (MGTEN Index), a thematic, equal-weighted benchmark designed to measure the price return of 10 U.S.-listed large-cap stocks of technology and growth-orientated companies. The new product suite will offer investors a way to gain targeted exposure to these influential stocks through cash-settled index futures and options Cboe Plans to Launch Cash-Settled Futures and Options on New Index Tracking Tech and Growth-Orientated U.S. Stocks^[1].

The Cboe Magnificent 10 Index includes stocks such as Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia, and Tesla, along with Advanced Micro Devices (AMD), Broadcom, and Palantir. The index makes up approximately 38% of the S&P 500's market value, reflecting its significance in the tech sector Cboe Plans to Launch Cash-Settled Futures and Options on New Index Tracking Tech and Growth-Orientated U.S. Stocks^[1].

The new product suite will be cash-settled and offer a range of expiration dates, including nearly 24x5 and shorter-dated options trading. This will provide investors with tools to manage risk, enhance yield, and express their views on the dynamic U.S. equity landscape. The MGTEN Index futures and options will be cleared by the Options Clearing Corporation (OCC), potentially allowing for margin offsets Cboe Plans to Launch Cash-Settled Futures and Options on New Index Tracking Tech and Growth-Orientated U.S. Stocks^[1].

Cathy Clay, Global Head of Derivatives at Cboe, highlighted the growing demand for smarter ways to gain exposure to influential stocks and the need for tools to manage positions and hedge risk more precisely. The planned MGTEN options will be cash-settled and European-style, eliminating physical delivery and the potential for early exercise. Weekly P.M.-settled options with expiries on each trading day will also be available, offering zero-days-to-expiry (0DTE) trading options Cboe Plans to Launch Cash-Settled Futures and Options on New Index Tracking Tech and Growth-Orientated U.S. Stocks^[1].

Cboe aims to launch the MGTEN Index monthly options and futures in the fourth quarter of 2025, with weekly P.M.-expiring options to begin trading in the first quarter of 2026, all subject to regulatory review. The new products will be listed and traded on Cboe Exchange, Inc. (Cboe Options) and Cboe Futures Exchange (CFE) Cboe Plans to Launch Cash-Settled Futures and Options on New Index Tracking Tech and Growth-Orientated U.S. Stocks^[1].

The launch of the MGTEN Index futures and options is part of Cboe's strategy to attract tech traders and compete with CME Group, following the exchange's recent plans to list perpetual Bitcoin and Ether futures. This move aligns with the growing interest in tech stocks and the increasing demand for sophisticated trading tools Cboe Plans to Launch Cash-Settled Futures and Options on New Index Tracking Tech and Growth-Orientated U.S. Stocks^[1].