Monday, September 22, 2008

E*trade telling it like it is . . .

The new and improved additions to the "no-no list" of trading behaviors:

IMPORTANT: Due to new Securities Exchange Commission rules, short selling on certain financial securities are not permitted from September 19, 2008 through October 2, 2008. The complete list of stocks which are unavailable for shorting can be found here. Any previous existing open orders to short sell these securities have been cancelled. 

New Information for Options Customers: Due to the above new temporary SEC Rules on short sales, opening new positions on "uncovered calls" and exercising "long puts" on certain financial securities are not permitted. This temporary measure, currently in effect through October 2, 2008, is a result of the above new rules since an assignment of an uncovered call and exercise of a long put would result in a short sale position. Please use caution not to open the above mentioned uncovered call positions. E*TRADE Securities reserves the right to close-out any uncovered options position at any time at its discretion. Any financial result of this transaction will be the full responsibility of the customer. Again, please note that the above circumstances are a direct result of the above described SEC regulation on short sales. 

If you have any questions or concerns, please contact us at 1-800-ETRADE1. 

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