--- title: "6 Things You Might Have Missed in @optionspuppy’s AMA" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/100000000961916.md" description: "Before you sell a put, ask yourself 3 questions. 6 answers from @optionspuppy’s AMA on sizing, premiums and falling stocks, plus our 3 best questions." datetime: "2026-10-30T10:41:35.000Z" locales: - [en](https://longbridge.com/en/topics/100000000961916.md) - [zh-CN](https://longbridge.com/zh-CN/topics/100000000961916.md) - [zh-HK](https://longbridge.com/zh-HK/topics/100000000961916.md) author: "[Captain Leo](https://longbridge.com/en/profiles/2070106138627633152.md)" generator: "portal-rs" --- # 6 Things You Might Have Missed in @optionspuppy’s AMA Most options content starts with the trade. @optionspuppy starts with the questions you should ask before it. Almost every answer came back to the rule he gave us in the interview: **“Never take a position that would force me to panic.”** These are the answers that show what that rule looks like in practice. The bold line on each is the takeaway; the reasoning underneath is why it holds. Short on time — the bold lines alone will do. ## 6 Answers Worth Saving #### 1 Three questions before every put. *Asked by* @TheInvestingIguana*: How do you calibrate position size in practice: a fixed percentage per trade, or does it flex with how confident you are in the thesis?* > “For me, I start by asking myself three questions: Am I comfortable owning the shares if my cash-secured put gets assigned? Do I have enough cash to handle the assignment without affecting my daily expenses? And if the stock drops another 20–30%, can I still sleep peacefully at night? Confidence may influence which opportunities I choose, but it should never be an excuse to take excessive risk.” #### 2 Size by what you can afford to lose. ***🏆 Best Question** — asked by* @Miraclez\_girlz*: Your biggest rule is never taking a position that forces you to panic. When volatility can spike quickly, what framework do you use to size a position so emotion stays out of it?* > “I usually size my positions based on how much cash I have and how much I can afford to lose. For cash-secured puts, I only sell strikes where I’m comfortable owning 100 shares. I also avoid using too much margin, diversify across stocks, and keep cash available for opportunities.” #### 3 A sharp drop can outweigh many premiums. ***🏆 Best Question** — asked by* @NewUser\_CkrdqW *: How do you use options, such as cash-secured puts, for steady income? And for someone with zero options knowledge, how can options data guide investing without actually trading them?* > “I sell cash-secured puts on stocks or ETFs I am willing to own at my chosen strike price. I collect premiums while waiting, but profits are never guaranteed, and a sharp price drop can outweigh many premiums earned. … Start by learning about put-call options, implied volatility, and the put-call ratio. These statistics can help me understand market sentiment and expectations without actually trading options. Treat them as additional indicators, not guaranteed signals.” #### 4 Never buy just because a stock falls. ***🏆 Best Question** — asked by* @J tan*: I often buy when the price drops, and then it keeps plunging. How do I avoid catching a falling knife?* > “My rule is never to buy just because a stock falls. I check whether its fundamentals remain strong, identify support levels, and wait for signs of stabilisation. I enter in stages rather than all at once. Remember, a cheaper price doesn’t always mean better value; patience protects capital.” #### 5 Mr Market is a strict teacher. *Asked by* @LazyCat*: How did you start on options, and were there memorable “school fees” paid to Mr Market?* > “I started learning options to generate extra income and improve my entry prices. Of course, Mr Market is a strict teacher! My biggest lessons were never to chase premiums, underestimate risk, or trade emotionally. Every loss reminds me to respect risk management, stay disciplined and keep learning.” #### 6 Learn from others without blindly following them. *Asked by* @NoahLydia*: More and more people are sharing their investing expertise. Is that a good sign, or herd mentality?* > “I think it can be both. Sharing investment knowledge is a good thing, but when everyone starts rushing into the same stocks because others are making money, that’s when herd mentality becomes a risk. The key is to learn from others without blindly following them. Ultimately, we are responsible for our own money and decisions.” **📖 Want the full picture? Click** [**here**](https://longbridge.com/topics/100000000951740) **to read the full interview and every reply.** ## 🏆 The Winners Captain Leo’s 3 best questions are marked **🏆** above — congratulations to @Miraclez\_girlz, @NewUser\_CkrdqW and @J tan. Each wins a **SGD 2 stock cash voucher**. ⚠️ Rewards will be sent to your account within 2 working days — claim them at **“Me” > “My Rewards”**. **THANK YOU,** @optionspuppy For 147 replies, and for remembering that most of the people asking had never sold an option. Twenty-three years of tutoring showed. ### Coming up ## Who Should We Interview Next? The following episodes are still being lined up, and we’d like your help. Tell us in the comments which Longbridge member you’d most like to hear from, and the one question you’d ask them first. ***DISCLAIMER*** *The views from this post are the Longbridge community members’ own and do not represent the position of Longbridge or its affiliates. Nothing here is investment advice or an offer to buy or sell. **Options are complex, higher-risk instruments and are not suitable for every investor.** Markets carry risk — do your own research.* *No fee was paid for this interview. The guest and participating readers are eligible for community incentives as described above.* ## Comments (11) - **LazyCat · 2026-11-01T10:15:15.000Z**: Thanks Options puppy for your kind sharing. - **CoinYeye · 2026-11-01T07:06:35.000Z**: Very interesting perspective! The market is always full of opportunities, but having the right strategy and patience makes all the difference. Stay focused, manage risks wisely and let consistency drive long-term growth. Happy investing! 🚀📊 #LongbridgeSG - **optionspuppy** (2026-11-01T07:28:10.000Z): Yes my brother🚘✈️🚄 - **Fattycat · 2026-11-01T03:31:26.000Z**: Thanks Optionspuppy and congratulations to all the winners 😘 - **optionspuppy** (2026-11-01T07:28:17.000Z): Thanks - **optionspuppy · 2026-11-01T03:31:20.000Z**: Glad on this activity thanks @Captain Leo for the hard work - **Sweetheart · 2026-10-31T06:38:56.000Z**: I’m still very confused by options, have no idea how to close one after it expires. Do I have to do anything? - **optionspuppy** (2026-11-01T03:31:37.000Z): U either get assigned - **Sweetheart** (2026-11-01T03:40:56.000Z): So we don’t have to do anything? I have one which is still open… my option is 3usd, can I get wiped out for more or do I lose 3usd if it expires? - **optionspuppy** (2026-11-01T07:15:03.000Z): Depends if u buy or sellIf u buy it expire worthless But your risk is limited to --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**