Position Sizing for Options Risk

Size by risk, not ego. Rule: max 2% account premium at risk per trade. Adjust by regime: vix_z > 1.5 -> halve size; max_pain_distance < 0.3% near expiry -> quarter size. The model outputs a conviction score (P band width); wider band = smaller size. Lots are a unit, not a risk measure. A 1-lot ATM weekly can risk more than 5-lot deferred monthly. Size to survive the wrong ones; the right ones take care of themselves.