You don't want the smallest file size here. Smallest file size means highest compression. And as you want to put this clip as source media in a premiere project I guess you'd even like to have no compression (-artifacts) to get highest quality and fast timeline scrubbing.
Don't care about 17MB files. ![]()
Alpha channel makes only sense with intermediate codecs (like ProRes). You need these in the editing process. When you're exporting a finished project you don't need it anymore. h.264 does not support it.