q. Short Restricted Strategy Call (US Options & Futures)

Short Restricted Strategy Call (SL Call)

A Short Restricted Strategy call (SL) generates when a cash account ends up with a short stock position. A short restriction typically appears when a short call is assigned or if a long put expires in-the-money (ITM), which results in short stock.

How to meet a Short Restricted Strategy Call

Short Shares from an Auto-Exercise of a Long ITM Put

If you had a long put that expired ITM and, as a result, you now have -100 short shares, then all you need to do is cover the shares. To cover a short stock position, you will need to buy to close the equivalent short share amount.

When is the Short Restricted call due?

By End of Day

Short stock position(s) in a cash account must be closed by the end of the day the SL call is issued. The margin risk team will close any short stock that is not closed by the customer.