principal contract entered into) shall be increased by the amount of the deduction disallowed under subsection (a) (reduced by any amount of such deduction taken into account under this subsection to increase the basis of any specified asset previously acquired or any contract, option, or long notional principal contract previously entered into). (2) Rules with respect to certain acquisitions (A) In general In any case in which— (i) the taxpayer enters into a contract or option to acquire, or long notional principal contract in respect of, substantially identical specified assets (within the period specified in subsection (a)), and (ii) the taxpayer also acquires (within the period specified in subsection (a)) substantially identical specified assets and such acquisition would, but for the entering into of the contract, option, or long notional principal contract described in clause (i), have triggered a disallowance under subsection (a), then, subject to such exceptions as the Secretary may prescribe, paragraph (1) shall apply to the substantially identical specified assets described in clause (ii) and not to the contract, option, or long term principal contract described in clause (i). (B) Special rule for contracts and options Subject to such exceptions as the Secretary may prescribe, if the acquisition of any substantially identical specified asset is pursuant to a contract or option described in subparagraph (A)(i), then, notwithstanding whether such asset was acquired within the period specified in subsection (a), paragraph (1) shall apply to the substantially identical specified asset acquired pursuant to the contract or option and not to the contract or option. (e) Certain short sales of specified assets and contracts To sell Rules similar to the rules of subsection (a) shall apply to any loss realized on the closing of a short sale of (or the sale, disposition, or termination of a contract or option to sell or a short notional principal contract in respect of) specified assets if, within a period