With stock internals, injectors, and fuel pump I'd suggest a wet kit. No sense in stressting your stock fuel system with a big dry shot.
That said, 125 is safe and can be ran many times on a stock 4.8, 5.3, and 6.0. Since the LQ9 pistons are coated and the rods are beefier, a 150 shot can be used all day on the LQ9.
You should atleast change your plugs to TR6s though.