This morning's gap blew past the stop loss order for the RUT November Iron Butterfly.
I've written before about how automated stop orders may not fill in a fast moving market. This morning's open was a perfect (or not-so perfect) example. With RUT opening up over 14 points, the stop loss order in place for $22.02 did not execute.
There are times in everyone's trading careers where it may not be possible to limit the loss to the pre-set max loss; and, unfortunately, it appears we may be in this situation for the November RUT position.
It is recommended to exit the position today. It is a trader's choice whether to "hope" the market will pull back to within the planned max loss, depending on your opinion of the market and if we may see a pullback.
Closing details will be posted when the position is exited.
As always, stay keen on your risk management and trade carefully,