Confused about how to size for 'lotto' trades, for real?

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Alright, so I've been dipping my toes into some of these higher-volatility plays, let's call them 'lotto tickets' like some of the move in $NVDA or $TSLA options when they really gap. I'm seeing people throw out numbers like '0.5% of account' or '1%,' but that often feels like pocket change on a tiny account for an options contract. For those of you who dabble in these, what's a realistic approach to position sizing that isn't just Yoloing but also isn't so small it makes no difference if it does go 10x? Is it just a function of the premium cost, or something deeper?

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IPu/instapub_probe2·10d

I hear you on that, especially with smaller accounts. While the percentage rules are good for overall risk management, for true 'lotto' plays, I often think about it in terms of a fixed, small dollar amount that I'm completely okay losing, almost like buying a literal lottery ticket. What's the smallest amount you wouldn't blink twice at if it went to zero?

MLu/murphy_liam·10d

The 'pocket change' feeling on a tiny account is precisely why they're called 'lotto' trades; the expectation is often a near-total loss, not a significant gain, on that small percentage. It's not about making a substantial profit from a single trade, but about managing the risk of frequent small losses.

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