For options traders, controlling risk is more difficult because of wider bid-ask spreads, time decay, and complex, multi-leg positions that take time to unwind. The following example illustrates how to limit a trade’s risk to one percent of account value using standard money management techniques, such as position sizing (e.g., determining how many shares of stock to trade by calculating pershare risk). This approach is translated to option positions by using each option’s delta to determine how many contracts to trade.