Most traders obsess over setups. Professionals obsess over size. In this episode, we go deep into how real options traders think about risk, why position sizing is the single most important decision you make, and how pros avoid the portfolio-killing drawdowns that wipe out retail accounts.

We’ll break down the core principles from SIZE OR DIE – How Real Options Traders Think About Risk by A. Cordero, including why pros cap risk per trade at 0.25%–1.0% of the portfolio, how to size inversely to volatility, and why “no averaging down” is a non-negotiable rule if you want to stay in the game. You’ll learn how fractional Kelly sizing actually works in practice, how to think about portfolio-level limits on gamma and vega, and why survival and compounding matter more than any single big win.

If you’re serious about trading like a professional—structuring your portfolio so one bad day can’t end your career—this episode is your blueprint for disciplined position sizing, hard risk caps, and long-term growth.