TRADERSNAV
RISK NAVIGATOR™
Smart Position Sizing for Smarter Options Trading
Trade Setup
Educational Examples
Example: Oversized Contract
$600 account • 3% risk = $18
$3.00 premium = $300 contract cost
$18 ÷ 100 = $0.18 stop
$3.00 - $0.18 = $2.82 stop price
⚠️ This is a very tight stop (6%) and unrealistic. Contract is 50% of account.
Small Account Guidelines
• Trade cheaper contracts (under $1.00 premium)
• Consider using spreads to reduce cost
• Strictly control position size (under 15% of account)
• Never risk more than 3% on a single trade
• Avoid using full 1-3% rule with expensive contracts