A Short Restricted Strategy call (SL) generates when a cash or IRA 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
Just cover the short stock position
Short shares from an early short call spread assignment
If you were assigned early from a short call that was part of a spread in your IRA account and your long call is ITM, then you may perform a covered stock order to meet the SL call. To learn how to set up a covered stock order, please click here.
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. However, if the long put was part of a calendar or diagonal spread and the long put is ITM, then you may perform each covered stock order.
When is the Short Restricted call due?
By End of Day
Short stock position(s) in a cash or IRA account must be closed by the end of the day the SL call is issued. The tastyworks trade desk will close any short stock that is not closed by the customer.