Less is looking at your terminal settings and seeing a short screen. Run stty to see what the screen height is and change it to the right thing. If your TERM environment variable is xterm, then this should be getting updated automatically whenever you resize the window.
But to answer your question: you can put any options to less you want into the LESS environment variable, and less will set them on startup. I put the following in my $HOME/.profile:
LESS=QMies; export LESS
to get my favorite less settings.
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