Options Levels

Hello, new here. My question is:

I am approved for Level I options at Scottrade. Level I allows for cash covered puts and covered calls. I want to purchase calls and puts outright, without an underlying asset, which I am supposed to have a Level II options account to do.

It appears I would still be able to purchase calls and puts on Scottrade, even though my Level I clearance technically forbids me.

My question is: what are the consequences if I do purchase long puts and calls without holding the underlying asset?

Thanks

-Josh

Options Levels