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buying-power-nvda-appl

Understanding Buying Power Fluctuations in High-IV Stocks Like NVDA (v.s. AAPL and GOOG)

Overview Selling short puts on AAPL, GOOG, and NVDA with similar expiries revealed a practical difference:NVDA’s buying power (BP) requirement tends to move intraday, while AAPL and GOOG remain comparatively stable.This article explains why—contrasting Reg‑T with risk‑based (portfolio) margin, walking through a worked example,and showing how BP reacts to implied volatility (IV). 1) Margin Models…

Buying Power in Options Trading: How It Shapes Your Strategy
Buying Power in Options Trading: How It Shapes Your Strategy

Buying Power in Options Trading: How It Shapes Your Strategy

When trading options, one of the most overlooked yet critical factors is Buying Power (BP). It’s not just a number on your brokerage screen—it’s the lifeline that determines what trades you can execute and how much risk you can take on. In this post, we’ll explore how BP impacts your decision-making, especially when selling spreads,…