Is it illegal to post short calls on my blog?

Hi Folks,

I recently started a blog where I analyze companies and post my trades. I bet both long and short. My question is whether it is against SEC rules to suggest my readers to short a particular company. I list detailed entries and exits and fundamentals reasons why the company is crap and should continue its downtrend for example. I don't have a huge following so I'm under the radar for now but I worry about further down the road as my blog gains more of a following.

Am I breaking any rules here?

Thanks for your input.

 

It's only illegal if you are getting the information from under a rock and are licensed.

Post a link.

 

No.

First amendment court cases have affirmed the right of newsletter authors and bloggers to post trades in public. Don't give any individualized advice though.

Also as a practical matter, to avoid lawsuits, I would be cautious not to allege fraud or other wrongdoing or improper behavior on the part of companies or other traders unless you have iron-clad proof (which is unlikely). Instead, at most hint vaguely at it in such cases by saying it was odd or unexplained or whatever.

 

Thanks both of you for your input. I'm glad to hear that. Wasn't sure what you meant by individualized advice though.

 

an example is if your website allows users to enter any information an you provide a recommendation based on their input... this is deemed as roviding trading advice.

publishing signals that two or more can execute is ok... nothing tailored to any individual client.

 

Under U.S. law, it can make things easier if you don't receive compensation for what you post.

 

I agree.

Also do not respond to emails where people say, for example, "I have a small account, which trades should I take." To respond to that with suggestions would be providing individualized trading advice which is illegal unless you are registered as a adviser.

Also do not help people execute trades with their broker etc.

 

What law are you referring to?

It is perfectly permitted without restriction to post or sell a newsletter with trading signals etc. There are a gazillion of them and the editors do not need to be registered and are not registered, regardless of whether they charge or not. This is very well established.

 

Are you sure?
I believe you have to be registered if you receive compensation.

 

This wouldn't be an excuse to promote your blog would it?

Not that anyone would ever do such a thing.