How does the 1-2-3 Position Sizer work?

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Put in your account size and how much of it you risk on a trade (1% is a common choice). It divides that by how far your price is above the call's stop (10% under the entry) and shows the shares, what the stop and the target would mean in dollars, and what one contract of the options trade cost. The sum Shares = your risk in dollars ÷ (your price − the stop). On a 1-2-3 call the stop is 10% under the alert's entry, so at the entry each share risks a tenth of its price. Example: 1% of an account of 10,000 is 100 to risk. On a stock at 50 the stop is at 45, so 5 a share is at risk: 20 shares. Using it Open it under Your 4 bonuses (the sizer). Your account and risk are remembered in that browser. Pick an open call (its own stop and target are used) or Any price. Change Your price to what you will actually pay; what you pay a few minutes after the 3:45 PM alert is usually a little different from the price on it (the entry). The options trade When the call's option is priced, the sizer shows what one contract cost at the signal (its price × 100). The option has no stop, so it counts the whole price as the risk. A gap can open past a stop, so a loss can be bigger than the stop.