Last Updated: July 12, 2025
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Overview
This module delivers risk-aware position sizing and risk management strategies tailored specifically for options trading. It helps optimize exposure and mitigate risks inherent in various options strategies.
The RISI Framework Breakdown for Position Sizing and Risk Management
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as an institutional risk and trade management analyst. |
| I | Insight | Analyzes risk factors and trade sizing metrics relevant to options positions. |
| S | Strategy | Simulates position sizing and hedging strategies for options trades. |
| I | Impact | Provides actionable guidance on managing exposure and protecting capital in options trading. |
How to Use the Position Sizing and Risk Management Module
Copy and paste these prompts into ChatGPT sequentially, replacing [STOCK] with your target ticker:
- Role Prompt:
Activate ProOptions Mode for Institutional Risk and Position Sizing Analysis - Risk Analysis Prompt:
Summarize risk factors and position sizing considerations for options trades on [STOCK]. Limit output to one paragraph. - Sizing Strategy Prompt:
Analyze optimal position sizing and hedging strategies for options trades on [STOCK]. Limit output to one paragraph. - Strategy (Simulation) Prompt:
Simulate institutional position sizing and risk management approaches for options trades on [STOCK]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize actionable guidance on risk management and position sizing for options trading. Provide one clear, actionable paragraph grounded in institutional behavior.
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