Mini options control a smaller amount of the underlying than standard contracts — for example, XSP is one-tenth the size of SPX. They exist to make large products accessible to smaller accounts.

What they are

A standard equity option controls 100 shares; some products have smaller versions. The most relevant is XSP (Mini-SPX), roughly 1/10th of the full SPX contract — putting index-option benefits (cash settlement, tax treatment, no early assignment) in a SPY-sized, retail-friendly package. Mini contracts let you size precisely on otherwise-large products.

Why they exist

Full-size index options like SPX are large (each contract represents big notional), which is capital-intensive and imprecise for small accounts. Mini options solve that — you get the index-option features at a manageable size, improving accessibility and position sizing granularity for retail traders.

Mini options shrink a big product to a tradeable size — XSP puts SPX-style settlement and tax perks in a SPY-sized wrapper.

The takeaway

Mini options (like XSP) are smaller-size contracts that make large index products accessible with better sizing and tax/settlement benefits. For a 0DTE trader who wants cash settlement in a small size, XSP is the key example. NoVo focuses on SPY (the most liquid); minis are a useful alternative to know.