Post #18388 by rayvt on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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I just tried at Schwab to put in a fake order to sell such puts. With my non-margin account and being option level 1 only I expected that to be refused with a message "Higher option level required" or so. Not so. Non-margin account and option level 1 really is enough --- or would the expected message appear if I´d dare to click on "Submit"?

Probably not. The other day I put in an order at Schwab non-margin account and accidently typed too many zeros in the quantity. It immediately gave me a "No can do" message.

If you really want to try it out, put in an order when the market is closed -- like on the weekend. If it accepts the order you can cancel it. I do this every so often.

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As for your immediate question, I did have a similar experience long ago in an IRA.
I called the broker and asked what would happen if I got assigned and didn't have enough cash.
He said: We would buy it and immediately sell it. If there was a loss we would treat it like a margin call and sell other holdings in the account.

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