Hi,
Consider the following scenario:
Current state::
cash 26649.22
buying_power 107420
initial_margin 0
last_maintenance_margin 1
maintenance_margin 0
non_marginable_buying_power 26649.22
options_buying_power 26649.22
portfolio_value 26650.22
Note that our portfolio only includes a 0.01 option and that explains the 1$ difference between portfolio value and cash.
Now, at this juncture, let us assume that we do the following trade:
Short call spread by going long NVDA250314C00113000 and short NVDA250314C00111000. Also assume that the execution of this trade results in a credit of $155. Since the net risk of this position is limited to $(113 - 111)*100 = $200, we expect a margin requirement of the same amount as well.
However after this trade, we have the following state:
cash 26804.13 ------ Increase of $155, which is expected.
buying_power 102959.76
initial_margin 200
last_maintenance_margin 1
maintenance_margin 200
non_marginable_buying_power 25664.67 – a decrease by $984.55,
options_buying_power 25664.67-- a decrease by $984.55,
portfolio_value 26635.13
Thus non margin buying power, as well as options_buying_power has decreased by unexplained huge amounts. I would have expected both of these to decrease by $200, since that the maximum risk associated with this portfolio. Can someone explain this non trivial decrease in the value of these metrics?
Thanks