This risk is there in any trading strategy (very highly improbable at 9:30 flush, like getting struck by lighting in a forest). If it happen, you just hit the panic button, cancell all orders. You would see the ES and GC going nuts as indicators. If your already in you have xx% chance being hedged xx% being on the right side...
5 fills, all longs. 20 cents per share, but MS was an unusual fast run up which tipped this on the high side. The other 4 averaged 4 cents.
I had something similar happen to me a couple of weeks past 9/11. Another airport (potential) disaster, I had turned off my Company squawk box, where my brother had told the Firm to cancel all opening orders (I was in Reno chatting with traders). Anyway, I got about 30 long fills, was down immediately, and ended up making a bunch about a half hour later when the crisis turned out to be nothing. I agree with the post above, we have to focus on probability, not so much on "worst case scenerios"...... All the best, Don
GE was over 40 cents above its fair market value pre-market so I shorted it opened at 12.49, made 23 cents.
With pre-market adjusts and .6 envelopes got 8 hits on only 21 stocks; continue to have high percent of hits, not sure why. Average for all today was .05 cents winner.