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This ONE Rule Separates Profitable Traders From the 90% Who Lose. · Earn Your Leisure

• 0:00
  Speaker 1: So last week myself, Troy, we went into a sand
• 0:02
  Speaker 1: disk call.
• 0:04
  Speaker 2: And it's a weak call.
• 0:05
  Speaker 1: I don't really like hed some weak calls because I
• 0:08
  Speaker 1: feel like it's very risky and anything can happen, geopolitical risk,
• 0:13
  Speaker 1: a variety of different things that can happen, and like
• 0:16
  Speaker 1: that's out of your control. That can make a stock
• 0:18
  Speaker 1: go down. That's not necessarily a great indicator of like
• 0:21
  Speaker 1: the stock being a weak stock. But it's like, you know,
• 0:23
  Speaker 1: it just happened, but you know we did that, We
• 0:27
  Speaker 1: did the sand desk.
• 0:28
  Speaker 2: I tell them what happened. Seven old. I had to
• 0:30
  Speaker 2: call you, you know, like listen to me. Listen. I
• 0:36
  Speaker 2: think you know.
• 0:36
  Speaker 3: I said it's important because no, no, no, I'm saying that.
• 0:40
  Speaker 3: In this sense, what it does is it sharpens the iron, right,
• 0:45
  Speaker 3: because I know when I call him and I tell him,
• 0:47
  Speaker 3: I know he's thinking no.
• 0:48
  Speaker 2: But then I'm gonna tell him why, and then he's
• 0:50
  Speaker 2: still going to say no.
• 0:51
  Speaker 3: And then I'm say, look, here's what I'm really seeing
• 0:54
  Speaker 3: as well, and then I'm like, what do you think?
• 0:57
  Speaker 4: Yeah, that makes sense, It makes I don't know what
• 0:59
  Speaker 4: that means, but he just says it. Even that though,
• 1:02
  Speaker 4: makes sense that's what a great investor should do. You
• 1:04
  Speaker 4: should go in believing nothing about an asset, and then
• 1:08
  Speaker 4: you should have to make your case. So when you're
• 1:10
  Speaker 4: talking to your friends or your family, if they're giving
• 1:12
  Speaker 4: you pushback on the idea, it means you have not
• 1:15
  Speaker 4: explained it well enough what the risk could be and
• 1:18
  Speaker 4: what the reward could be.
• 1:20
  Speaker 1: Yeah, yeah, yeah, that's true. So the option expires next month.
• 1:23
  Speaker 1: I think that's May first. Is that next Monday?
• 1:25
  Speaker 2: On May first? Is this Friday? May eighth? Is the
• 1:27
  Speaker 2: Friday after? No? No, but it inspires May I think
• 1:30
  Speaker 2: that the eighth. I'm in the May fourth. No, I
• 1:33
  Speaker 2: can't be. It has to be a Friday. I mean, no,
• 1:34
  Speaker 2: I think it's the first. I want to say it's
• 1:37
  Speaker 2: the first. No, it's the first May first Friday for Friday.
• 1:39
  Speaker 1: Yeah, all right, So it expires on Friday. The earnest
• 1:42
  Speaker 1: is on Thursday. So we did it Thursday, send this
• 1:46
  Speaker 1: one up Friday, and then it went up today. So
• 1:51
  Speaker 1: all right, So I want to make this an interactive
• 1:53
  Speaker 1: part of the show. So now that option call is
• 1:57
  Speaker 1: up ninety one percent, roughly around ninety percent two days. Yeah,
• 2:02
  Speaker 1: So the first thing is for you guys, watching. I
• 2:06
  Speaker 1: want to, like I said, I want to make this interactive.
• 2:08
  Speaker 1: We're up ninety percent, but then they report their earnings
• 2:11
  Speaker 1: on Friday. So how I in my brain, there's two
• 2:14
  Speaker 1: ways how this can go. It's going up because the
• 2:18
  Speaker 1: anticipation is that it's going to blow out its earnings,
• 2:21
  Speaker 1: and you you you ride this all the way, said
• 2:25
  Speaker 1: that moment right before earnings Thursday, after maybe one hundred
• 2:32
  Speaker 1: turns to one percent. Who knows, well before close Thursday,
• 2:37
  Speaker 1: you sell on Thursday.
• 2:40
  Speaker 2: That's something they report after closing. That's one thing.
• 2:42
  Speaker 1: Another thing that you could do is say, look I
• 2:43
  Speaker 1: already double my money tomorrow Tuesday, you sell.
• 2:47
  Speaker 2: You can't get greedy.
• 2:48
  Speaker 1: One one hundred percent three days ain't never been a
• 2:51
  Speaker 1: bad deal, no matter how you look at it. Another
• 2:54
  Speaker 1: thing is you could take it all the way to
• 2:56
  Speaker 1: the to the breaking point, all the way to Friday,
• 3:00
  Speaker 1: and say, look if they if they go up on earnings,
• 3:06
  Speaker 1: then we're just gonna ride it out to the end.
• 3:08
  Speaker 1: We're gonna get maximum. We're not gonna leave nothing on
• 3:11
  Speaker 1: the table. Out of those three options, what would you guys.
• 3:14
  Speaker 3: Do you know what we should out of those three options?
• 3:16
  Speaker 3: What do they think that you would do what they
• 3:18
  Speaker 3: think that Ian would do what they think I would do?
• 3:21
  Speaker 2: What would you do? What would you do?
• 3:23
  Speaker 4: If you, let's say your eight contracts, I would probably
• 3:26
  Speaker 4: take And it's a great lesson. You have to know
• 3:29
  Speaker 4: the exit before you start, as Clay did. You have
• 3:34
  Speaker 4: to know the exit before you start. So if I
• 3:36
  Speaker 4: had eight contracts, I would take out four at one
• 3:39
  Speaker 4: hundred percent and then I will let the rest run,
• 3:43
  Speaker 4: because you never want to be in even with earning,
• 3:46
  Speaker 4: a company can do incredibly well and all the games
• 3:49
  Speaker 4: have been already taken to the upside. The stock slides down,
• 3:53
  Speaker 4: so you can be in trouble. But in this case,
• 3:55
  Speaker 4: I would probably split, get out at one hundred percent,
• 3:58
  Speaker 4: and then let the other four run.
• 4:01
  Speaker 2: What if you have if you have one contract.
• 4:04
  Speaker 4: Oh, I'm taking one hundred percent tomorrow. Yeah, I'm locking
• 4:07
  Speaker 4: in profit walk away?
• 4:09
  Speaker 2: Yeah, Okay, what are you going to do? I think
• 4:13
  Speaker 2: everybody probably knows what I'm gonna do.
• 4:16
  Speaker 3: And this is part this is part of of the
• 4:18
  Speaker 3: conversation that we had.
• 4:20
  Speaker 2: I said, I called him, like yo, shatty.
• 4:22
  Speaker 3: We got to start looking at how we can hedge this,
• 4:24
  Speaker 3: how we can leverage it. And the reason I said,
• 4:27
  Speaker 3: that is because this is not our only saying disc call, right,
• 4:30
  Speaker 3: Like we have calls out to twenty twenty eight. Like
• 4:33
  Speaker 3: I'm in a two thirty call to twenty twenty eight.
• 4:36
  Speaker 3: So think about that, right, that's going to probably be
• 4:38
  Speaker 3: my next thousand percenter. Yeah, And so I mean we're
• 4:41
  Speaker 3: so far up on that that yes, we can keep
• 4:43
  Speaker 3: that money growing over the long term, or we could say, hey,
• 4:47
  Speaker 3: is this worth an opportunity here on the short term.
• 4:50
  Speaker 3: And for me, I'm thinking, and I've told it to
• 4:52
  Speaker 3: him this personally, this story's not going anywhere. In fact,
• 4:56
  Speaker 3: I saw it at eleven hundred by the summer, and
• 4:59
  Speaker 3: the fact that's like teetering at that number here Now
• 5:02
  Speaker 3: I had at fifteen hundred by the end of the year.
• 5:05
  Speaker 2: It's teetering like toward that.
• 5:06
  Speaker 3: Now here comes the run up, right, And so we
• 5:09
  Speaker 3: got a few contracts here, I said, Look, my usually
• 5:14
  Speaker 3: I would exactly what you said, Ian, if I got
• 5:16
  Speaker 3: eight contracts I'm selling for I'm letting the profits run.
• 5:19
  Speaker 3: In this case, I'm saying, Okay, once I get one
• 5:21
  Speaker 3: hundred percent, I take the initial out and I'm gonna
• 5:23
  Speaker 3: let it run past earnings. Because a couple of things
• 5:26
  Speaker 3: that will determine that. If it gets to eleven hundred
• 5:29
  Speaker 3: by Thursday, then we're out right. But if it doesn't, right,
• 5:33
  Speaker 3: because where can we go. If I said twelve hundred,
• 5:35
  Speaker 3: then you know that's that's one hundred dollars move, it's
• 5:37
  Speaker 3: probably like another eight percent.
• 5:39
  Speaker 2: It's not worth the risk. Risk, it's not worth the risk.
• 5:43
  Speaker 2: But the key was leverage.
• 5:45
  Speaker 3: And so I know he's in some strong Micron calls
• 5:48
  Speaker 3: that go out to like December of twenty eight, twenty seven,
• 5:51
  Speaker 3: And I'm thinking to myself, well, you've been in those clodes.
• 5:53
  Speaker 3: That's one thousand percent. What if you can get one
• 5:55
  Speaker 3: hundred percent in the next three weeks? Right now, if
• 5:59
  Speaker 3: the stock turns on to the downside, Let's say the
• 6:03
  Speaker 3: one contract with six thousand dollars and you bought to
• 6:06
  Speaker 3: and now you're down to four thousand because the stock
• 6:09
  Speaker 3: just pulled back thirty dollars or something like that. Right,
• 6:12
  Speaker 3: the fact that you still have the leverage of having
• 6:14
  Speaker 3: that that late December call, you're gonna you can get
• 6:18
  Speaker 3: that back, right, You can get that back.
• 6:21
  Speaker 2: Over and over, and you can also say, all right,
• 6:23
  Speaker 2: it pulled back.
• 6:23
  Speaker 3: Here's another opportunity for me to get some more long
• 6:27
  Speaker 3: term called dated options to actually get back the loss
• 6:32
  Speaker 3: that you potentially could have had on the short term.
• 6:33
  Speaker 3: And so it's all leverage. It's not, hey, we don't
• 6:36
  Speaker 3: have sand dis we have to get in the sand dis.
• 6:37
  Speaker 3: Let's do this earnings play. It's all right, we're leveraged here.
• 6:41
  Speaker 3: We have stacked our sandus calls. I'm in the two thirty,
• 6:44
  Speaker 3: I'm in the three hundred, I'm in the five hundred,
• 6:47
  Speaker 3: I'm in a six twenty, I'm in a seven hundred.
• 6:50
  Speaker 3: I got this nine hundred, and I think I'm not
• 6:52
  Speaker 3: going a nine to forty out to somewhere. So, I mean,
• 6:55
  Speaker 3: you can see that this is a company that I've
• 6:56
  Speaker 3: been invested in for a while now, and most of
• 6:59
  Speaker 3: y'all have been here since last I'm not I didn't
• 7:01
  Speaker 3: even say a while. This has happened really since November. Yeah,
• 7:04
  Speaker 3: and the games have been astronomical, and so can we
• 7:06
  Speaker 3: make some short term here? We have right ninety percent.
• 7:09
  Speaker 3: So if you figure you put if the contract with
• 7:12
  Speaker 3: six thousand, you got two of them at twelve thousand,
• 7:14
  Speaker 3: you've made nearly twelve thousand in two days. They make
• 7:18
  Speaker 3: it one decision, one decision, And.
• 7:20
  Speaker 4: The most important thing is to have your predetermined target,
• 7:23
  Speaker 4: like for my features traders as well. You have to
• 7:26
  Speaker 4: know if you're gonna get out of one hundred percent,
• 7:27
  Speaker 4: like suffer me my navs that target that I gave
• 7:31
  Speaker 4: away with the master to mind, that's two hundred and
• 7:32
  Speaker 4: sixty percent, return my big target at eleven to one,
• 7:36
  Speaker 4: that's eleven hundred. So you have to know before you
• 7:39
  Speaker 4: get into the trade, what profit marked are you going
• 7:43
  Speaker 4: to take off?
• 7:44
  Speaker 2: So please write that down now?
• 7:45
  Speaker 4: Is it one hundred it's a two hundred percent, because
• 7:47
  Speaker 4: you don't want to be in between and be like,
• 7:49
  Speaker 4: well I'm up to fifty, but you should have exited
• 7:52
  Speaker 4: already and then earnest comes, it reverses your fate and
• 7:54
  Speaker 4: then you're upset. Have those predetermined numbers and then you
• 7:57
  Speaker 4: can know if I hit these numbers four or five
• 7:59
  Speaker 4: times in the year, I can be done so.
• 8:02
  Speaker 2: And those are the best phone calls. Those are the
• 8:04
  Speaker 2: best phone calls.
• 8:04
  Speaker 3: When you watch something go up ninety percent and I'm like, hey,
• 8:08
  Speaker 3: what you're going to do?
• 8:09
  Speaker 2: Yeah?
• 8:09
  Speaker 3: Right, you're making money? Now what do you do? Is
• 8:11
  Speaker 3: like I got to call heyhim up ninety percent, What
• 8:12
  Speaker 3: should I do? Like you're up ninety percent? Like where
• 8:16
  Speaker 3: that's why the market is so great. Where else could
• 8:19
  Speaker 3: you make ninety percent of your money.
• 8:21
  Speaker 2: And not have to talk to nobody
• 8:23
  Speaker 3: Question quietly, Just do it you want with your day
• 8:27
  Speaker 3: and go on to the to the next opportunity.