This ONE Rule in Options Trading Saved My Profits

Summary

---

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.

---

Transcript

[Podcast Host]

This is an iHeart podcast.

[Ernest]

Guaranteed Human hey Earnest, what's up? One thing we always say on this show is you've got to be intentional with your money, because it's not just

[Klarna Representative]

about how much you make, it's about how you manage what you spend.

[Ernest]

Exactly. That's why tools like Klar are interesting. It gives you flexibility when you're making purchases.

[Klarna Representative]

When you're checking out, you can decide how you want to pay, whether that's paying right away or spreading payments over time, depending on what works for you.

[Ernest]

Everything's organized in Klarna app so you can track your spending in one place, and when you shop through the app, you can find deals and earn cash back with participating partners. Download the Klarna app today or visit klarna.com to learn more.

[Klarna Representative]

California Resident Loans made or arranged pursuant to a California Finance Law License NMLS Number 1353190 Klarner Balance Account required to be eligible for cash back points. Limitations, terms and conditions apply.

[Public Investing Representative]

Support for the show comes from Public, the investing platform for those who take it seriously. On Public, you can build a multi asset portfolio of stocks, bonds, options, crypto and now generated assets which allow you to turn any idea into an investable index with AI. It all starts with your prompt. From renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year, you can literally type any prompt and put the AI to work. It screens thousands of stocks, builds a one of a kind index and lets you back test it against the S&P 500. Then you can invest in a few clicks. Generated assets are like ETFs with infinite possibilities, completely customizable and based on your thesis, not someone else's. Go to public.com podcast and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com podcast paid for by Public Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors llc. SEC Registered Advisor Generated Assets is an interactive analysis tool. Output is for informational purposes only and is not an investment recommendation or advice. Complete Disclosures [e-mail] Do you want to

[CarMax Representative]

find a stress free way to buy your next car? Start at CarMax and shop your way. If you want to browse with confidence, get pre qualified online with no impact on your credit score and shop cars within your budget. From luxury cars to family rides, CarMax has options for almost every price range, including more than 25,000 cars priced under $25,000 so hey, want to get started? Just head to CarMax.com for details and get pre qualified today. Want to drive CarMax?

[Wasabi Representative]

Wasabi is purpose built to free your business from skyrocketing storage costs and fees from the big guys. Wasabi is the go to provider for professional and collegiate sports teams around the world. Check out Wasabi's AI enabled intelligent media storage, Wasabi Air and the industry's only cloud storage service with triple protection against cyber criminals. Wasabi driving innovation in data storage for up to 80% less than market competition. Try for [e-mail] Wasabi Hot Cloud Storage Proud partner of Iheart Podcast Network Ryan

[Ryan Reynolds]

Reynolds here from Mint Mobile. I don't know if you knew this but anyone can get the same Premium Wireless for $15 a month plan that I've been enjoying. It's not just for celebrities. So do like I did and have one of your assistant's assistants switch you to Mint Mobile today. I'm told it's super easy to [e-mail]

[Mint Mobile Representative]

Switch upfront payment of $45 for 3 month plan equivalent to $15 per month required intro rate first 3 months only, then full price plan options available, taxes and fees, extra fee, full [e-mail] so

[Ernest]

let's, let's go talk about this back to options if we can because people have questions. So the first question is, is this time to, to, to take profit on things that, on. If you're up on an option and you know, obviously things can move very quickly in that world. So is it time to start taking profit? Lock in profit.

[Troy]

I think you lock in profit, you have that story before you even invest, right? But right now, today, why it's individual case, right?

[Ernest]

So for general, general purposes, if people are, if people are up on their options because you're either up or you down, right? So I'm gonna ask the question for people that are down next. But for people that are up, people that are up, right, and they might have already taken some profit. They might have already did the 100 strat. They already did that. They have four contracts. They doubled their money. They already took out two contracts there. They have two contracts left, but they're still up, you know, over 100. Is it time to do another one to lock in profit because of the insert uncertainty in the market. At least, at least you've locked in some level of victory. You can sit on the cash and, and try to figure this thing out. Until we get some guidance, a couple things.

[Troy]

Number one is how much time do they have Inside those contracts. Second thing is you, you lock in your profit before you invest. Right? And what I mean is, like, everybody's not trying to get 100. Some people might be trying to get 20. And that's great. Did you get the 20? All right, you took out your profit. You may have left the rest a few contracts in there to. To appreciate. Well, what's the strategy on the backside? Right, like, yeah, we're not at 100 anymore, but now we're pulling down. So what's the threshold now? Is it 50?

[Co-host or Guest Trader]

Right.

[Troy]

So I could. Right. So we don't get back to zero. Right. So you start taking profits when you start to see depreciation now when you go negative. Right. So some people are like, wait, I'm down 11, I'm down 12. I'm down 20. I'm down 30. Well, 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. Some people don't put their stop loss right. Like, I am guilty of that. Like, I didn't always put my stop loss because I was putting time on these contracts. Like everybody. EYL, I've been huge on Uber. That contract was down 40, 50. That contract is out to December of 2028. I'm not thinking about it the same way that I would if I was having a contract that was expiring in April of this year. Right. And so that time factor, all that has already been predetermined. All right, I'm putting time on here. I'm staying close to or at the money. More recently, I've been buying in the money because of the volatility. So all those strategies are implemented before you even make the trade. And so when you now, when you start to see depreciation, you start to see some pullback. Did I hit my profit margin that I wanted to. To take money out at yes or no as we go down. What is it? Is it 75? Is it 50? Is it 20?

[Co-host or Guest Trader]

I'm gonna get answer. You want shot Pause?

[Ernest]

Okay, okay.

[Co-host or 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. But we, we are. Troy's talking to a very disciplined. And so am I, a very disciplined investors. But for those of you who 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.

[Troy]

Yeah. And the reason why we started with that as a tip, as is buying the time is because if this is your first time investing, you're not coming back. When you see something like this.

[Co-host or Guest Trader]

Absolutely.

[Troy]

Like if you've invested for the first time in the past two months, it feels so discouraging because it's like, wait, hold on. This is the first time I'm doing this. I can't recover from this. How do I come back from this?

[Co-host or Guest Trader]

Yeah.

[Troy]

That's why I have in those thresholds before you ever start have those thresholds. Because you might see, we'll use Micron, for example, Right. You might see Micron go up to 460 now. It's pulled down to 3:20 today. But somebody sitting in that contract saying, all right, well I didn't invest yet. This might be a good time for me. Right. Or I took some profit. I'm gonna, as it's pulling back, I'm gonna wait to get back into it. I might get a call out even further. Like I did that. I'm like, wait, I don't have any in December 28, let's see if it hits, if it depreciates even more. Like it was 40% today. I was on a plane. I didn't get to see the probably those same contracts are probably down 50. I'm looking to get out into 20, 28. I'm two years out. All right.

[Ernest]

Yeah.

[Troy]

Is this still the company I believe in? Is the story change? No.

[Co-host or Guest Trader]

Right.

[Troy]

I don't care if SK Hynix becomes publicly traded here in the United States. I, I understand the story. Even with Google, even with Google making the announcement about Google quant and how that might change memory or if you look at the history of Google, a lot of their products are used for internal employees.

[Co-host or Guest Trader]

Yeah. It's not for the end consumer.

[Troy]

It's not, it's not enterprise facing. Hey, we're making these products so you can buy them. It's hey, we're using them so we can get ahead and stay ahead. So the story doesn't change. 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.

[Ernest]

So what's the recommended stop loss?

[Troy]

I would say safety is probably anywhere between 20 to 35. You've, they've watched me do further. What companies am I going further on Nvidia.

[Co-host or Guest Trader]

Right.

[Troy]

Well, I go 50, of course I'm gonna go 50 on Nvidia Micron. I've done 50 and they've seen it before where I've gone 50. If it's a company, I understand a story and I clearly see it. Yeah, I, I said it a little

[Co-host or Guest Trader]

further out and this ain't the time for finesse. Two times trading. No stop loss. No, we're not in that market like chill. If it's not an excellent company. For my futures traders, because some of you are taking your, your stops off and you're trying to ride it through the London through American session, but things can change so fast. Make sure that you have your trades in place and for my futures traders, record your trades because if you get stopped out, you can't tell them, hey, my stop was at this level and you filled me here. You're going to have to send in evidence so that they can verify it and on top of that, credit back to your account. Because even the slippage in your stop loss may be deeper than you, you want it to be because of the volatility. Be mindful.

[Troy]

Yeah, it's important. And that's why I said nobody celebrates on the negative side. It's like, oh my gosh, the sky's falling.

[Co-host or Guest Trader]

Yep.

[Troy]

Well, the same Micron call That was down 52% when I posted that, it was up 2,000%. Everybody cheers. Yeah. Why? Right? It's because it was disciplined. Division was there, we understood the story. We're there a lot of people and shout out to everybody that that made gains on that. It's because of the discipline. It's because we bought time for that to have a reversal.

[Co-host or Guest Trader]

Right.

[Troy]

We can't predict volatility, but what we can do is buy time to combat it.

[Ernest]

Hey, Ernest, what's going on? We always talk about using tools that help you stay in control of your money.

[Klarna Representative]

Klarner is one of those tools. It gives you flexibility to decide how you want to pay for your purchases, whether that's paying now or spreading payments over time. The best part is you can manage everything in the Klar app.

[Ernest]

Download the Klarner app today or visit klarner.com to learn more.

[Klarna Representative]

California resident loans made or arranged pursuant to a California Finance Law License NMLS Number 1353190 Klarna Balance Account required to be eligible for cashback points. Limitations, terms and conditions apply.

[Wasabi Representative]

Wasabi is purpose built to free your business from skyrocketing storage costs and fees from the big guys. Wasabi is the go to provider for professional and collegiate sports teams around the world. Check out Wasabi's AI enabled intelligent media storage, Wasabi Air and the industry's only cloud storage service with triple protection against cybercriminals. Wasabi driving innovation in data storage for up to 80% less than market competition. Try for free at wasabi.com, wasabi Hot Cloud Storage proud partner of iHeart Podcast

[Ryan Reynolds]

Network Ryan Reynolds here from Mint Mobile with a message for everyone paying Big Wireless way too much. Please, for the love of everything good in this world, stop with Mint. You can get premium wireless for just $15 a month. Of course, if you enjoy overpaying. No judgments. But that's weird. Okay, one judgment anyway. Give it a [e-mail] Switch upfront payment

[Mint Mobile Representative]

of $45 for three month plan equivalent to $15 per month required Intro rate first three months only, then full price plan options available, taxes and fees extra. See full [e-mail] hey, did you know

[Dietz and Watson Representative]

Dietzen Watson has been family owned for over 85 years. To us, that means it's more than a business, it's personal. We make our premium meats and cheeses the right way, even if it's slower or inconvenient or hard because that's how you get the highest quality. If it's not good enough for our family, it's not good enough for yours. And while others cut corners, we keep raising the bar. So if you see the Dietz and Watson name, you'll know every Slice has my family's seal of approval. Dietz and Watson It's a family thing

[Podcast Host]

since 1939, every business has an ambition. PayPal Open is the platform designed to help you grow into yours with access to business loans so you can expand and hundreds of millions of PayPal customers worldwide. Your customers can pay all the ways they want today with PayPal, Venmo, pay later and all major cards so you can focus on the future when you need a partner trusted by millions. There's one platform for all business PayPal open grow today at paypalopen.com loans subject to approval in available locations. This is an Iheart Podcast. Guaranteed human.