Stop loss order in place for November RUT Iron Butterfly.
In an unexpected move overnight, the Bank of Japanâ€™s policy board voted by a 5-to-4 margin to expand the pace of its quantitative easing, sending Tokyo stocks soaring and futures sharply rising this morning.
As of this writing, RUT futures (TF) are up over 14 points. Unless things pull back significantly before the open, this morning's move will put the November Iron Butterfly in serious jeopardy. The position has already been adjusted twice to accommodate the upside moves since entry. Rather than risk going past the pre-set max loss, I have put a stop loss order in place to exit the position for the 10% loss as per the plan.
The closing debit will be posted when the order is executed.
As always, stay keen on your risk management and trade carefully,