You might also want to consider a nice 1-4x or 1-6x scope. I see your limit is $200 BUT the Vortex 1-6x Strike Eagle is under $400. It comes with an illuminated reticle too. I am using one on my M&P 15OR for 3-gun and really like it.
As far as dot size goes, my first red dot was a TRS-25. Ive moved it from gun to gun over the last several years. It's held up very well. On my competition gun, an M&P C.O.R.E., I currently have a Burris FFIII with an 8 MOA dot. I find the smaller dot better for the rifle and a larger dot for my pistol. Hope this helps.
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