Cboe Shakes Up Markets with Revolutionary ’Magnificent 10’ Index Futures Launch

Cboe just dropped a bombshell—futures contracts tracking the hottest ten stocks are coming to market. This isn't just another index play; it's a targeted bet on market leaders rewriting the rules of performance.

Strategic Positioning or Desperation Move?

While traditional indices spread risk across hundreds of names, the Magnificent 10 zeroes in on pure alpha. Cboe's betting that traders want concentrated exposure to the companies actually moving markets—not diluted returns from dead-weight constituents.

The Crypto Angle Everyone's Missing

Here's where it gets interesting: concentrated indices like this create perfect hedging instruments for crypto portfolios. Institutional money finally gets tools to manage correlation risk without dumping actual digital assets. Traditional finance might finally be learning from crypto's efficiency playbook—though we'll believe it when we see volume.

Why This Changes Everything

Futures on hyper-focused indices could unlock sophisticated strategies that simply weren't possible before. Think pairs trading against crypto ETFs, volatility arbitrage, or structured products that blend traditional and digital assets. This isn't just about stocks—it's about building bridges between worlds.

Of course, Wall Street will find a way to overcomplicate and overfee it—they always do—but the underlying innovation? That's genuinely bullish for everyone building the future of finance.

• New Cboe Magnificent 10 Index (MGTEN Index) will measure a fixed set of actively traded U.S.-listed stocks
• Planned cash-settled MGTEN Index options to allow for nearly 24×5 and shorter-dated options trading
• Launch is latest push by Cboe to meet robust retail investor appetite for derivatives

Cboe Global Markets, Inc., the world’s leading derivatives and securities exchange network, announced plans to launch futures and options on the new Cboe Magnificent 10 Index, subject to regulatory review. The new product suite will offer investors a way to gain targeted exposure to several of the most actively traded AI technology-focused stocks through cash-settled index futures and options.

The Cboe Magnificent 10 Index, launching soon, is 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 current constituents include all the Magnificent 7 stocks (Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia, and Tesla), in addition to Advanced Micro Devices (AMD), Broadcom, and Palantir. The value of the MGTEN Index will be available on the Cboe Global Indices Feed via the Cboe Global Indices Channel. Cboe intends to list futures and options on the Cboe Magnificent 10 Index that will trade on a nearly 24×5 basis, providing a comprehensive suite of tools for market participants seeking to manage risk, enhance yield, and express their views on the most dynamic segment of the U.S. equity landscape.

“Both institutional and retail traders are increasingly looking for smarter ways to gain exposure to the most influential, market-moving stocks – along with tools to manage their positions and hedge risk more precisely, both intraday and around the clock,” said Cathy Clay, Global Head of Derivatives at Cboe, at the HOOD Summit in Las Vegas. “With our new MGTEN Index futures and options, we’re bringing the best of Cboe’s indexing and derivatives expertise to meet this demand. These products deliver curated exposure to a select group of high-impact stocks in a single solution – rather than managing 10 separate positions – while helping to reduce the concentration risk that may come with trading individual stocks. In particular, as market participants increasingly utilize cash-settled index options for short-dated strategies, we believe MGTEN options will similarly be a powerful tool for implementing daily trading strategies around these in-demand stocks.”

MGTEN options will be cash-settled and European-style, eliminating physical delivery and the potential for early exercise, differentiating these from options on the stock components. Along with the standard monthly A.M.-settled expirations, Cboe plans to list weekly P.M.-settled options with expiries on each trading day, offering investors across the globe the ability to trade zero-days-to-expiry (0DTE) options on the index. 0DTE trading has grown significantly in recent years as investors seek the utility short-dated options can provide, including the ability to tactically hedge, more granularly manage intraday risk, and implement daily yield-generating strategies. MGTEN options will be listed and traded on Cboe Exchange, Inc. (Cboe Options).

The planned cash-settled MGTEN futures will be listed and traded on Cboe Futures Exchange (CFE). MGTEN futures will offer a capital-efficient way to gain exposure to the most influential tech stocks through a single tradable product. Futures provide a way to diversify portfolios with inherent leverage, empowering investors to take larger positions with smaller upfront capital, while offering the precise ability to hedge, speculate, or enter a short position. Both the MGTEN Index futures and options will be cleared by the Options Clearing Corporation (OCC), potentially allowing for margin offsets.

Cboe aims to launch the MGTEN Index monthly options and futures in the fourth quarter of 2025, with the weekly P.M.-expiring options to begin trading in the first quarter of 2026, all subject to regulatory review. At launch, MGTEN Index futures and options trading will be available during regular trading hours and Cboe plans to extend availability through its Global Trading Hours at a later date. For more details on the index and its tradable products, visit the pre-launch resource hub here.

Source: Cboe