TD Ameritrade Trading Restrictions on Stocks

Authored by tdameritrade.com and submitted by Pioneer160

The following securities have additional requirements in place, and some trading strategies have been limited to only allow clients to trade with their own capital on hand, not borrowed funds. You can continue to place buy and sell stock orders, as well as some option strategies.

This list is as of June 4, 2021, 4:00 PM ET.

We may also implement additional requirements on opening trades on options that expire 6/11.

All stocks are marginable (requirement = 100%).

Short selling is not allowed at this time.

There are no limitations on long calls and long puts for these stocks.

Custom spreads are not allowed, but standard spread orders are. Spread orders allowed include: Verticals, Back/Ratio, Calendar, Diagonal, Straddle, Strangle, Covered Stock, Collar, Butterfly, Combo, Condor, Iron Condor, Vertical Roll, Collar with Stock, Double Diagonal and Double Calendar.

Opening orders on short individual options are not allowed with the exception of cash-secured puts or covered calls, which must be placed through a broker.

If you currently own stock in one of these securities and wish to sell a covered call, you must do so with a broker. Please be aware that wait times to speak with a broker may be longer than normal due to current market conditions.

If you have no position and wish to simultaneously buy stock and sell calls against it, you may enter it as a covered stock (buy/write) order online.

Please keep in mind that security requirements/strategy limitations can be added and may change at any time, without notice due to volatility or other market conditions.

optimismadinfinitum on June 6th, 2021 at 14:56 UTC »

The guy who posted a $639k loss on a $40 naked short call? That’ll do it.

Edit: Thanks for pointing out that it was a girl. 11/10 it’s guys that are that dumb.

And thanks for the awards. The wholesome award definitely touched my heart.

OGReverandMaynard on June 6th, 2021 at 13:17 UTC »

Honestly I see this as a self preservation move so TD doesn’t get left on the hook by overly ambitious margin bets

VeRyOkAy69420 on June 6th, 2021 at 12:35 UTC »

Before anyone gets their panties in a twist:

The following securities have additional requirements in place, and some trading strategies have been limited to only allow clients to trade with their own capital on hand, not borrowed funds. You can continue to place buy and sell stock orders, as well as some option strategies.

They’re just restricted with regard to margin