Uh... doesn't look good for this guy...
https://www.interactivebrokers.com/...le=registration_1/ira_customer_agreement.html
B. POTENTIAL FOR ADVERSE TAX CONSEQUENCES: CUSTOMER UNDERSTANDS THAT TRADING REQUIRING MARGIN (INCLUDING FUTURES TRADING AND SHORT OPTION TRADING) MAY REQUIRE DEPOSIT OF ADDITIONAL FUNDS TO CUSTOMERâS ACCOUNT TO MAINTAIN SUFFICIENT MARGIN. CUSTOMER UNDERSTANDS THAT PROVISIONS OF THE INTERNAL REVENUE CODE PLACE LIMITS ON THE AMOUNT OF FUNDS THAT CAN BE DEPOSITED TO AN IRA ACCOUNT, AND THAT DEPOSITS TO THE ACCOUNT IN EXCESS OF SUCH LIMITS MAY CAUSE ADVERSE TAX CONSEQUENCES TO CUSTOMER, INCLUDING BUT NOT LIMITED TO FORFEITURE OF TAX-ADVANTAGED STATUS OF THE IRA ACCOUNT AND/OR PENALTIES. CUSTOMER IS SOLELY RESPONSIBLE FOR CONDUCTING CUSTOMERâS TRADING TO AVOID EXCESS DEPOSITS AND RESULTING ADVERSE TAX CONSEQUENCES. AS DESCRIBED BELOW, IB WILL LIQUIDATE POSITIONS IN CUSTOMERâS ACCOUNT IN THE EVENT THAT CUSTOMER CANNOT OR DOES NOT DEPOSIT SUFFICIENT FUNDS TO SATISFY MARGIN REQUIREMENTS. CUSTOMER IS SOLELY RESPONSIBLE FOR CONDUCTING ITS TRADING CONSISTENT WITH IRS REGULATIONS AND FOR DETERMINING THE TAX CONSEQUENCES OF ANY TRANSACTION IN THE IRA ACCOUNT. IB DOES NOT PROVIDE ANY TRADING OR TAX ADVICE AND IS NOT RESPONSIBLE OR LIABLE FOR JUDGING THE TAX CONSEQUENCES OF ANY TRANSACTION OR FOR AVOIDING PENALTIES OR OTHER ADVERSE TAX CONSEQUENCES IN THE ACCOUNT. IB WILL NOT EXTEND CREDIT FOR TRANSACTIONS IN INDIVIDUAL RETIREMENT ACCOUNTS.
F. Customer understands that OCC assigns exercises to clearing firms such as IB and Customer acknowledges that it has read and understands the description of the OCC assignment procedures set forth in Chapter XI of the OCC Document. Customer acknowledges that, upon assignment, Customer shall be required: (1) in the case of an equity option, to deliver or accept the required number of shares of the underlying security, or (2) in the case of an equity index option, to pay or receive the settlement price, in cash. Customer understands that it may not receive notice of an assignment from IB until one or more days following the date of the initial assignment by OCC to IB and that the lack of such notice creates a special risk for uncovered writers of physical delivery call stock options. Customer acknowledges that it has read and understands this risk as described in Chapters VIII and X of the OCC Document.
H. If, prior to expiration of an option contract, Customer does not have sufficient equity to meet the initial margin requirement for the purchase or sale of the underlying security, then IB: (1) shall have no obligation to purchase or sell such underlying security or (2) upon exercise may immediately liquidate the underlying security position which results from the exercise of the option contract and Customer shall be liable for resulting losses and costs.
https://www.interactivebrokers.com/...le=registration_1/ira_customer_agreement.html
B. POTENTIAL FOR ADVERSE TAX CONSEQUENCES: CUSTOMER UNDERSTANDS THAT TRADING REQUIRING MARGIN (INCLUDING FUTURES TRADING AND SHORT OPTION TRADING) MAY REQUIRE DEPOSIT OF ADDITIONAL FUNDS TO CUSTOMERâS ACCOUNT TO MAINTAIN SUFFICIENT MARGIN. CUSTOMER UNDERSTANDS THAT PROVISIONS OF THE INTERNAL REVENUE CODE PLACE LIMITS ON THE AMOUNT OF FUNDS THAT CAN BE DEPOSITED TO AN IRA ACCOUNT, AND THAT DEPOSITS TO THE ACCOUNT IN EXCESS OF SUCH LIMITS MAY CAUSE ADVERSE TAX CONSEQUENCES TO CUSTOMER, INCLUDING BUT NOT LIMITED TO FORFEITURE OF TAX-ADVANTAGED STATUS OF THE IRA ACCOUNT AND/OR PENALTIES. CUSTOMER IS SOLELY RESPONSIBLE FOR CONDUCTING CUSTOMERâS TRADING TO AVOID EXCESS DEPOSITS AND RESULTING ADVERSE TAX CONSEQUENCES. AS DESCRIBED BELOW, IB WILL LIQUIDATE POSITIONS IN CUSTOMERâS ACCOUNT IN THE EVENT THAT CUSTOMER CANNOT OR DOES NOT DEPOSIT SUFFICIENT FUNDS TO SATISFY MARGIN REQUIREMENTS. CUSTOMER IS SOLELY RESPONSIBLE FOR CONDUCTING ITS TRADING CONSISTENT WITH IRS REGULATIONS AND FOR DETERMINING THE TAX CONSEQUENCES OF ANY TRANSACTION IN THE IRA ACCOUNT. IB DOES NOT PROVIDE ANY TRADING OR TAX ADVICE AND IS NOT RESPONSIBLE OR LIABLE FOR JUDGING THE TAX CONSEQUENCES OF ANY TRANSACTION OR FOR AVOIDING PENALTIES OR OTHER ADVERSE TAX CONSEQUENCES IN THE ACCOUNT. IB WILL NOT EXTEND CREDIT FOR TRANSACTIONS IN INDIVIDUAL RETIREMENT ACCOUNTS.
F. Customer understands that OCC assigns exercises to clearing firms such as IB and Customer acknowledges that it has read and understands the description of the OCC assignment procedures set forth in Chapter XI of the OCC Document. Customer acknowledges that, upon assignment, Customer shall be required: (1) in the case of an equity option, to deliver or accept the required number of shares of the underlying security, or (2) in the case of an equity index option, to pay or receive the settlement price, in cash. Customer understands that it may not receive notice of an assignment from IB until one or more days following the date of the initial assignment by OCC to IB and that the lack of such notice creates a special risk for uncovered writers of physical delivery call stock options. Customer acknowledges that it has read and understands this risk as described in Chapters VIII and X of the OCC Document.
H. If, prior to expiration of an option contract, Customer does not have sufficient equity to meet the initial margin requirement for the purchase or sale of the underlying security, then IB: (1) shall have no obligation to purchase or sell such underlying security or (2) upon exercise may immediately liquidate the underlying security position which results from the exercise of the option contract and Customer shall be liable for resulting losses and costs.
