- Solve real problems with our hands-on interface
- Progress from basic puts and calls to advanced strategies
Interactive Options Course
Posted July 27, 2026 at 12:50 pm
A new market trend has emerged this year. Financial products that had seemingly been left for dead have returned to life. Binary options, which were launched in 2008, never really took off in their exchange-traded formats but later morphed into the basic logic behind prediction markets (such as IBKR ForecastTrader). Today, the CME returns single stock futures (SSF) to the market landscape. Hey, at least this means we can once again refer to quarterly expirations as “quadruple witching.”
Single stock futures were listed in 2002, when the Commodity Futures Modernization Act of 2000 legalized these products in the US. There were two competing exchanges: NQLX, owned by Nasdaq (which at the time was owned by Euronext Liffe), and OneChicago, which began as a joint venture of the CME, Cboe, and Chicago Board of Trade. NQLX folded in 2004, but OneChicago persisted until September 2020. I am personally quite familiar with OneChicago and SSFs because IBKR bought 40% of that exchange, and while one of my colleagues had primary responsibility for making markets on that exchange, I sat next to him and backed him up when he was out of the office. Unfortunately, SSFs never gained traction with investors during that time.
Historically, SSFs in other countries thrived only under 1 of 3 conditions:
As noted above, there is a key advantage to SSFs – futures tend to trade with less margin than individual stocks. That can be as low as 15%. Prevailing interest rates were higher when SSFs were launched, though investor appetite for leveraged speculation in the wake of the internet bubble was not particularly high. Then, after the Global Financial Crisis, interest rates were quite low, making the margin differential less appealing. Rates are now off their post-Covid lows, but that doesn’t seem to be the reason for the reintroduction of SSFs.
Leveraged ETFs have become especially popular in recent months, and the CME certainly can’t be blind to that trend. This offering of SSFs is aimed squarely at individual investors, not institutions, particularly those with 10x, not 100x multipliers. The smaller multiplier makes them more accessible to smaller investors.
Further, unlike the options that are embedded in leveraged ETFs, futures don’t decay. This avoids much of the performance drag that hinders investing in leveraged ETFs. Like options, they do expire, though.
It is apparent that the reintroduction of SSFs is designed to appeal to highly speculative investors. Investors have demonstrated their willingness and desire for leveraged exposure to single stocks. There can certainly be debates about whether high levels of speculation in leveraged products are risk factors for market stability. Much will depend upon whether investors perceive adequate liquidity and appeal for the new version of the old products.
New to Interactive Brokers?
Open AccountAlready an Interactive Brokers Client?
Request Trading PermissionThe analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers, its affiliates, or its employees.
Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading futures, please read the CFTC Risk Disclosure. A copy and additional information are available at ibkr.com.
Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by going to the following link ibkr.com/occ. Multiple leg strategies, including spreads, will incur multiple transaction costs.
Any discussion or mention of an ETF is not to be construed as recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Complex or Leveraged Exchange-Traded Products are complicated instruments that should only be used by sophisticated investors who fully understand the terms, investment strategy, and risks associated with the products. Learn more about the risks here: https://gdcdyn.interactivebrokers.com/Universal/servlet/Registration_v2.formSampleView?formdb=4155
Short selling is an advanced trading strategy involving potentially unlimited risks and must be done in a margin account.
Trading on margin is only for experienced investors with high risk tolerance. You may lose more than your initial investment. For additional information regarding margin loan rates, see ibkr.com/interest
The information in this material is provided for informational purposes only and does not constitute tax advice and cannot be used by the recipient or any other taxpayer to avoid penalties under any federal, state, local or other tax statutes or regulations, or to resolve any tax issue.
Related Articles
Join The Conversation
For specific platform feedback and suggestions, please submit it directly to our team using these instructions.
If you have an account-specific question or concern, please reach out to Client Services.
We encourage you to look through our FAQs before posting. Your question may already be covered!