Podcast Summary: Earn Your Leisure – "This ONE Rule in Options Trading Saved My Profits"

Release Date: April 4, 2026
Hosts: Rashad Bilal, Troy Millings
Podcast: Earn Your Leisure (iHeartPodcasts)

Episode Overview

In this episode, Rashad Bilal and Troy Millings zoom in on the critical rules of options trading, specifically focusing on how disciplined profit-taking and stop-loss strategies can make or break your results, especially in volatile markets. The discussion is practical, aimed at both new and experienced traders, emphasizing the importance of having a plan before entering any trade. The conversation also covers the emotional side of trading, strategies for managing both upside and downside, and why buying time on your contracts can hedge against market unpredictability.

Key Discussion Points & Insights

1. When to Take Profits in Options Trading

• Prompt: Should you take profits if your options positions are up?
• Rashad opens by asking, “If you’re up on an option…is it time to start taking profit? Lock in profit.” [03:35]
• Troy suggests profit targets should be established before entering a trade:
  • “You lock in profit, you have that story before you even invest… Everybody’s not trying to get 100%. Some people might be trying to get 20. And that’s great. Did you get the 20?” [03:59–04:48]
• The hosts encourage listeners to act decisively when targets are hit, rather than get greedy or wait for more in uncertain times.

2. The Importance of Pre-Setting Thresholds & Having a Game Plan

• Before entering a trade, know your expected profit and loss targets.
• Troy: “Have those thresholds before you ever start… Did I hit my profit margin? Yes or No. As we go down, what is it? Is it 75, 50, 20?” [05:16–06:32]
• The ethos: Don’t get back to zero. Start taking profits as your contracts begin to depreciate.

3. Stop-Losses: The ONE Rule That Saves Profits

• The main rule echoed repeatedly is the critical need for a stop-loss—a predetermined level where you cut losses.
• Troy shares: “That’s why we have our stop loss, right? So before we enter the trade, we have our stop loss, whether that’s 30 or 40.” [05:16]
• Admits some traders (including himself) don’t always use stop-losses, especially with longer-dated contracts, but stresses why it’s especially important now.
• For newer or undisciplined traders, the advice is clear:
  • Guest Trader: “If you are undisciplined, yes, it’s time to take profit. If you just hit market and got in anywhere because you was told the market is going to go up no matter what and you have no, no plan or playbook for how you’re trading—yeah, it’s time to pack it up, take your profit. Now you need to reassess completely.” [06:36]
• Repeat message: The rule applies before making the trade, not after.

4. Buying Time as a Hedge Against Volatility

• The volatility of the current market is a big topic.
• Troy explains why he buys extra time (“buying time on these contracts”) as a protective strategy, especially with contracts extending to years like December 2028. It allows trades to weather short-term shocks and improves chances of recovery. [04:48–05:16, 07:24–08:20]
• “We can’t predict volatility, but what we can do is buy time to combat it.” [10:46]

5. Belief in the Underlying Company and Revisiting the Trade Premise

• If facing a drawdown, ask: Has the story changed? Is this still a company you believe in?
• Troy: “Is this still the company I believe in? Has the story changed? No.” [08:20]

6. Stop-Loss Numbers & Market Warnings

• Troy recommends a stop-loss of 20–35% for most contracts; for companies he understands deeply, he sometimes lets it go to 50% (e.g., Nvidia, Micron). [09:09–09:32]
• Firms warning against undisciplined trading:
  • “This ain’t the time for finesse. Two times trading, no stop loss...If it’s not an excellent company… chill.” [09:32]
• Special note to futures traders: Always record your trades and use stop-losses, as volatility can cause significant slippage. [09:32–10:16]

Notable Quotes & Memorable Moments

• Troy on Pretrade Discipline:
  “You lock in your profit before you invest…everybody’s not trying to get 100. Some people might be trying to get 20. And that’s great.” [04:48]

• Guest Trader on Discipline vs. Gambling:
  “If you just scrounged up some money, didn’t care, you just lighting up at night and just got you like five contracts. My brother, it’s time to be disciplined. And this market is going to be tougher than ever until this war is over. Now, it’s not play time when it comes to trading.” [06:36]

• Troy on Emotional Aftermath for New Traders:
  “If you’ve invested for the first time in the past two months, it feels so discouraging because...I can’t recover from this. How do I come back from this?” [07:25]

• On Trading Long-Term Stories:
  “The companies haven’t changed. The opportunities and the prices and points that we get them, that will change. But we got to make sure we’re on the right side of it.” [08:47]

• Troy on What You Can Control:
  “We can’t predict volatility, but what we can do is buy time to combat it.” [10:46]

Timestamps for Core Discussion Segments

• Start of Options Discussion: 03:35
• Profit-Taking Rules & Approaches: 03:59–06:32
• Strict vs. Loose Trading Discipline, Market Warnings: 06:36–09:04
• Stop-Loss Best Practices: 09:04–09:32
• Trading Stories, Emotional Recovery & Buying Time: 07:24–08:47, 10:23–10:46
• Critical Conclusion: The One Rule (Stop-Loss & Plan): 09:09–10:46

Tone and Takeaways

The episode’s tone is candid, down-to-earth, and sometimes urgent. Both hosts stress practicality over hype, with a clear message:

Have a plan, set your profit/loss thresholds, and stick to your stop-loss—don’t gamble. Success is built on discipline, not luck.

For newcomers, the advice is even sharper: Survival in trading comes from preparation, not improvisation. The hosts repeatedly urge listeners not to treat trading as a get-rich-quick scheme, reminding them that, especially in unpredictable markets, the one rule that will save your profits is setting and honoring your stop-losses—even before you enter your trade.