 Hello everyone, welcome to Options with Doug, streaming live daily on the Bookmap Discord channel. I'm Bookmap Discord and the Bookmap YouTube channel. Before I get started, I need to go through the Disclosures. General Disclosure. All Bookmap limited materials, information, and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations. Disclosure, trading futures, equities, and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. The focus of my presentation and the focus of the Options-Doug Chat channel in Discord is Options, Order Flow, the impact of Options markets on stocks and futures, and the influence of market maker hedging flow on price action. I have a two-step process for trading and the first is planning, and I use positional analysis. I look at how traders and market makers are positioned in the options market and how those positions change from day to day to develop a thesis regarding the expected training range and volatility for the day as well as a directional bias. And the second step of my process is execution. And I look at real-time order flow and bookmap and real-time market maker hedging flow and Spot Gama Hero to confirm my thesis and for setups for entries and exits. And questions and comments are welcome, and I will be watching the chat in Discord, Options-Doug Chat channel in Discord, as well as the chat in YouTube for your questions and comments. So hello Viper, glad you're here, hello JEC, glad you're here as well, thought you were on vacation. Anyway, let's get started. My agenda for today, hello Trader Pete, here as well, glad you're here. And hello Second Wins, also glad you're here. All right, my agenda for today. First of all, I want to go over news items, just the jobs, wrap up the week with the jobs report. I'll go over that in just a moment, then I'll go through my positional analysis, and then I'll review setups from the morning, and then we'll take a look at the live market. All right, let's get started with the jobs report that came out today, much greater than expected. The market apparently interpreted that as bullish among other news, such as the Senate approving the debt ceiling bill. All right, so that's the news for the day, and then on Monday next week I'll go over the news items for the next couple of weeks. So upcoming is the FOMC meeting in a couple of weeks. All right, let's take a look at charts now, let's go to positional analysis. And this is the S&P 500 futures, showing a book map here, the ES futures. And before I take a closer look at this chart, I'm going to take a look at a larger time frame. And here's the SPX in a 30 day one hour chart. And SPX is definitely broken out of the range from really early April. And now moving up into what appears to be a 4200 or even a 4250 to 4300 range. Let me point out some levels on this chart. So first of all, here's the lower and upper edge, the expected move for the week, the dash purple line. And now SPX is trading above that level, the upper weekly expected move. The dash blue line is showing the lower and upper edge, the expected move for the day. And second day in a row, SPX is trading above that level. There are also some key gamma levels on this chart. First of all, the put wall, SPX put wall at 4,000, this is from spot gamma. And that is again at 4,000, that's the strike with the largest net negative gamma that can be expected to act as support. And that's not really on play now. And the next level is the 4190 volatility trigger. And note that did move up from yesterday. It was 4,170 yesterday to 4,190 today. That is spot gamma's proprietary gamma flip level. Below that level, market makers position on the gamma curve is negative. In a negative gamma environment, they have to trade with price to hedge their delta exposure. And that tends to enhance or increase volatility. On the other hand, like SPX is trading now, above that level, market makers position on the gamma curve, it's positive. In a positive environment, a positive gamma environment, they have to trade against price to hedge their delta exposure. And we'll see that in just a few minutes when we take a look at the Vano model. So right now, SPX is firmly in a positive gamma environment. And the next level is the 4,200 level. And that is the new absolute gamma strike. That's the strike with the largest absolute gamma. And that did increase from 4,150 yesterday to 4,200 today. So that is bullish. And then the call wall remains at 4,300. And that's the strike with the largest net positive gamma that can be expected to act as resistance. And that is the target that's definitely in play for today. And I think what Spott Gamma was thinking was that target could be in play in the next couple of weeks. And it may be sooner than that. All right, so those are the key daily levels. The put wall, volatility trigger, absolute gamma strike, and call wall. And again, the volatility trigger and absolute gamma strike for SPX shifted higher. For SPY, the put wall actually shifted lower from 415 yesterday to 400 today. And then the call wall shifted higher. So there's a question, second winds ask, is the call wall on SPY at 4,30, yes. So the call wall shifted higher from 4,22 yesterday to 4,30 today for SPY. And that is bullish. That's raising the ceiling, the target for SPY. All right, let's take a look at another thinkorswim chart. We'll take a look at a one day, one minute chart. And that'll give us a closer look at the levels that are in play for today. So again, SPX is trading above upper daily expected move, upper weekly expected move. And here's the call wall up above at 4,300, the next target above. All right, let's take a look at book map. In book map, I have two columns of notes here. The first is spot gamma cloud notes. And these are provided, again, to spot gamma subscribers for a variety of platforms. We just looked at thinkorswim and they're also here available for book map and cloud notes. These are showing combo levels, SPX and SPY combo levels converted to an equivalent SPX price and then converted to an equivalent ES price. And right now, the point difference between ES and SPX is about seven points. That's around what I calculated this morning, as well as what spot gamma is using. Then I have my own column of cloud notes here. And I'm showing the same levels as spot gamma, as well as SPY levels. These are key SPY levels. And that is the 424 combo two level. And note that was support this morning. And that was the launching point for a great long this morning. And when I talk about setups, I'll go over that. So there's the SPY 424 level. And the next SPY level in range is the 429, that's a combo one level. One is the highest rank of gamma. All right, so those are levels in play. And again, I'm showing upper daily expected move, upper weekly expected move. And these are for ES, so slightly different than SPX. And again, I'll talk about setups in a few minutes. And this was a very, very clear setup, this reversal hire at 10 AM. Let's take a look at NASDAQ now. And NASDAQ not quite as strong as the SAP 500 today. And I'm going to take a look at a QQQ chart here, showing the levels in play. So note for QQQ, the 352 level did act as support. And this is, to me, it kind of amazes me every time I see this. But these QQQ and SPY round number levels are so important for whatever form of NASDAQ trade or whatever form of the SAP 500 you trade. And so that was support today. And then now, QQQ is chopping around this combo L5 level. And that is not at a round number. That is the around the 354.83 level. Let's take a look at book map again. So here's the NQ futures. And note today, the NASDAQ was not able to make it above its upper daily expected move and upper weekly expected move. And here now, NASDAQ is chopping around that combo level just below 355. And I have the same sort of cloud notes here for NASDAQ as I do for the SAP 500. All right, again, we'll take a look at setups in a few minutes. All right, for NASDAQ, shifts and levels, for the NDX, Volatility Trigger did shift higher and the put wall shifted higher. And for QQQ, the Volatility Trigger shifted higher and the call wall also shifted higher. So the most significant shifts for today were the SPY call wall shifting higher and the QQQ call wall both shifting higher. And that was really somewhat of a green light for price to move higher, giving more headroom for SAP 500 and NASDAQ to move higher with the shifts higher and call wall and the call walls for each instrument. All right, let's take a look at the Vana model now. And this will give us a clue as to how market makers are positioned. And this is the SPX Vana model. And just to note, at the beginning of the day, Gamma Notional for SPX was quite positive at 696. And we'll take a look at that data in just a minute. Let me zoom on on this. So I know I go over this every day, but I think it's very important. Knowing market makers position on the Gamma Curve, they're Gamma Notional as well as how they can be expected to hedge. So this is showing market makers delta notional on the vertical axis and how it changes with price shown on the horizontal axis. And that is shown by this light gray curve showing how market makers delta notional, again, changes with price only. And what this is showing is as price increases, market makers delta notional will increase. And again, remember, they want to remain delta neutral. They are hedgers. They're bona fide market makers. So they have to remain delta neutral. So as their delta notional increases, they sell futures to hedge their delta exposure. And then the other curve here is this light purple curve. And that adds implied volatility to the equation. So that is showing how market makers delta notional changes with changes in price and implied volatility. And that change in applied volatility, that change in delta with a change in applied volatility is the VANA effect. And that is the second order options Greek. Let's take a look at the current price of SPX. Give me just a moment. So right now, I see that SPX is trading right around $4281. So let's locate that on this chart. So somewhere in between these two lines, somewhere a little bit lower than this line. So this is showing SPX is firmly in the positive gamma territory. And this is indicating that market makers, again, will need to sell futures to hedge their delta exposure as price tends to increase. So they're trading against price as price increases. And then if price drops from this level, which I would really like to see, they can buy back their short futures. So price increases from here. They're selling futures price drops. And they're buying back their short hedges. And actually, we should be looking at the pink curve, the purple curve, that's showing that market makers still will have to sell futures as price increases, but not to the extent as predicted by the gray curve, the delta-only curve. So that is the current market for SPX, the VANA model. Very important to take a look at this every day. And then let's take a look at, whoops, here we go, take a look at some data today. The data that I typically focus on is the gamma notional and spot gamma index for SPX, SPI, NDX, and QQQ. And let's focus on gamma notional. So this is market makers position on the gamma curve. All these numbers are positive. And it's been a while since I've seen all four index products have a positive gamma notional. And these numbers all increased from yesterday. And again, quite positive for SPX, positive 696 million, and also positive for SPI, NDX, and QQQ. And again, we saw that SPX and SPI are both trading and QQQ as well, all trading above their volatility trigger. So all in a positive gamma environment and all else being equal, expecting market makers to have to sell futures to hedge their delta exposure. All right, let's take a look at some setups now. So I'm going to go to hero here. Actually, let me, let's go back. So for those of you who may not be familiar with this chart, it is spot gamma hero, H-I-R-O, Hedging Impact, real-time options. This is showing price and hedging flow or hedging impact, options, trades, and market maker hedging flow. And this is showing a combined signal for SPX, SPI, XSP, and ES futures. All again in one combined signal. And we'll take a look at the individual components real quick. And then we'll take a closer look at this chart. So note this number is negative. Notional value is minus about 920 million now. So net for the day, options traders are starting to fade this move higher. And that started just around 11 AM. And again, we'll look at this in a little bit more detail in just a moment. Let's take a look at the individual components first. There's SPX, very similar looking to the total signal. And that's minus 677 million. SPI and looks like SPI options traders have gone a lot more aggressive in taking negative delta positions just a few minutes ago. And then ES futures. And this is showing a very strong correlation with price action. So the options traders trading ES futures options appear to be on the right side of the trade today so far. And net-net all together, this gives us a total of, again, around minus 900 million notional value. All right, let's take a look a little bit closer here. So the first thing I want to do is talk about setups this morning. And note here that options traders in the S&P 500 up until about 11 AM Eastern time were taking positive delta positions. And this set up a great long that we looked at before. We'll go take a look at that in just a moment at 10 AM at that. I believe that was the SPI 424 strike. So great divergent setup there in the S&P 500. All right, let's go take a look at book map. We'll take a look at the setup and book map. So right now what I'm doing is reviewing setups from the morning. I'm going to go through the S&P 500 and the NASDAQ. Take a look at a couple of stocks. And then we'll take a look at the live market. All right, so let's go to book map here. Let's go back to the S&P 500. And let's zoom in on this part of the chart. So that was the long entry here. So let's go over clues for the setup. So the first we saw that hero was rising pretty steady, even as price dropped from SPI 426 to SPI 424 around 10 AM. I know that was, water flow was definitely bearish. So that would have been a good short setup in the morning. Note the, all the aggressive sellers coming in there, you can tell by the, you can tell by the pink volume dots, large pink volume dots, a shift to bearish water flow, also shown by the drop in the cumulative volume delta, the dark blue line, also sell stop orders, fueling the move lower, shown by the falling yellow line there. But on the other hand, note the rising light blue line, that's showing that larger traders were buying with iceberg orders and in quite some size. So that is about, that's over 6,600 contracts. And I'm looking at a pretty wide range here. So that is showing 27 different transactions. Again, over 6,600 contracts. And more iceberg orders, over 3,000 there. And they continue to buy over 1,200 there. So that was a big clue. This rising light blue line, we know that traders are taking positive delta positions in hero. And that started from the open, even as price was dropping. And we have a clear level here for a potential reversal at the SPI 424 combo to level. And Truman asked, do they, I assume you mean Spot Gamma, use a static IV for the VANA plus price line? And you would have to ask them, ask that to Spot Gamma. So you can send questions to info at spotgamma.com. Or you can just look at the Spot Gamma website, look into their free resources. And you may be able to find it there. So again, that's a question for Spot Gamma. So great long setup here. Reversal at a clear level, the 424 level. And I think the low was actually SPI 123.95. I checked that earlier today. All right, so there's the setup in the S&P 500. And let's take a look at NASDAQ now. And I'm going to go take a look at, let's zoom in on this and then I'll take a look at hero. So that was actually a very nice short setup. Let's go take a look at hero for NASDAQ. And just like the S&P 500, this is a combined signal for NDX and QQQ. We'll zoom in on the morning. So first of all, for the short setup, there was a confirmation and definitely order flow shifted bearish, similar to the S&P 500, a lot of large pink volume dots coming in. And in this case, options traders were confirming the move. So there's the short setup and then a confirmation long. Took a little while to play out, a little longer to play out than the S&P 500. And price made a higher low as the hero signal reversed higher, just around 1025. So let's go take a look at those two setups in book map. First of all, very clear signal for a short, just below the upper daily expected move. Note the shift in order flow from almost pure green dots, aggressive buyers, and the sudden shift to aggressive sellers. Green dots to pink dots, sell stop orders fueling the move lower, large traders fading this, somewhat with iceberg orders, and then also the following cumulative volume delta. So order flow definitely confirming the reversal lower. And then here's the first reversal higher at 352. Again, you can just tell with the shift in order flow at a key level. And then the second entry, just around 1025. So those are the two, actually three very clear setups in the S&P 500 and NASDAQ combining hedging flow and order flow in book map. Well, let's take a look at a couple stocks. And the first is Amazon. And let's see what I saw on Amazon. It turns out to be not very interesting. Well, here's what I was looking at in the morning. This divergence long, very clear divergence long. Hero starts rising around 940, and then price starts to rise about 20 minutes later. Let's go back and take a look at book map. So there's the divergence long. It really was not as good a setup, not as productive a setup as the S&P 500 and NASDAQ. The next one is Microsoft. And what I saw on Microsoft was a divergent short this morning. So let's go take a look at Microsoft. So what I saw was this divergence short. Note that hero starts falling, and price falls a few minutes later. So hero options traders leading the move lower. Let's go take a look at book map again. And that was a you had to be quick to catch that. Just zoom in on that. So when we zoom in, you can see you had a few minutes to get into a short position at the 337 level. The next is NVIDIA. And options traders were very active in NVIDIA today. And it looks like there are a lot of aggressive sellers. Note the, we'll take a look at cumulative volume delta. But you can just tell by all the pink volume dots, aggressive sellers, except for the very open. Let's go take a look at hero. Note that 400 is the call wall. And this was really confirmation short for the first trade, then a confirmation long. So we'll go back and take a look at book map again. And now NVIDIA continues lower. And JEC indicated he found Google a pretty interesting trade this morning. I have Google. We'll take a look. I have Google and book map here. So that would have been a nice, fast, short setup in the morning. Let's see what kind of clue hero provided for Google. And pretty similar to NVIDIA, just not nearly the range. Confirmation of the short, 125 is the call wall. And price jumped up above that to 126. Let's take a look at the live market here. And first note that this rally today is broad-based compared to the last few weeks, really, which have the rallies have been driven primarily by large cap tech. Google, Microsoft, Apple, NVIDIA, Tesla. Tesla's still strong today. NVIDIA weak. But more of a broad-based rally today. So I think the S&P 500 is outperforming NASDAQ today. Let me just check on that. So definitely, I've got QQQ up about 0.6% today and spy up right now 1.35% today. So S&P 500 is definitely outperforming NASDAQ today. So maybe traders are rotating out of NASDAQ, big cap tech, into other stocks. Let's take a look at the live market now. So I'll go back to the S&P 500 combined signal. And again, showing that options traders are net for the combined signal starting to fade this move, actually, about 11 AM. And remember, the S&P 500 is firmly in a positive gamut environment, meaning market makers have to trade against price to hedge their delta exposure. Let's see what options traders are doing. So they are selling calls and buying puts. And that is shown by the falling blue line for puts. Negative $882 million. And then the falling orange line showing their selling calls minus $430 million. And let's go back to the total signal. We'll take a look at zero DTE, options trades. And that appears to be playing a very large part of the trade today. Note this zero DTE options trade shown with the green line there versus the all expirations shown with the purple line. So a lot of the trade today being driven by zero DTE options trades, options that expire today. And let's take that off, take a look at the total signal again, and we'll change that to a 30 minute rolling window period to give us a little bit more clarity into what is happening now. And still, options traders are taking negative delta positions. Let's go take a look at book map. Go back to the S&P 500. And SUS says, I love this. Great, thank you very much. Hero, I assume you're asking, what is hero? That is spot gamma hero. That is the hedging impact of real time options. And that is showing options trades for a variety of instruments and market maker hedging flow. So it gives us an idea of how options traders are positioning themselves, how they're trading, what they're trading, and then how market makers are hedging that. So remember, market makers always take the opposite side of their trades and have to trade with stock or futures. So S&P 500 made it up to spy 428. And now it's trading back below the upper weekly expected move. And again, remember, options traders are taking negative delta positions. Let's take a look at the NASDAQ. All right, for NASDAQ, order flow looks more bearish to me. And it looks like there were a couple of points for short. First of all, at the 14,600 level. And then right here, at this NDX, 14,557 level. So a pullback entry. And order flow is definitely bearish. I'm looking at the following CVD. Cell stop orders, as well as larger traders fading the move with iceberg orders. So SQS asks, when they add liquidity lower or higher, like what just happened, what is that indicating? And I don't know if you're talking about the S&P 500 or NASDAQ. The liquidity is a lot easier to see in the ES than NQ. There's really not a lot of liquidity shown in the heat map. S&P. So that's just so the heat map is showing a history of orders in the order book. And if you want more of a clue about how to read that book, Bruce, at book map, the lead educator is an expert at that. And he has a live webinar Monday, Tuesday, and Friday, typically at 10 AM. And his sessions are recorded there on the Bookmap YouTube channel. And if you want more information about how to read order flow and the heat map, I strongly recommend Bruce's webinars. Again, he's the expert in that. And I'm looking at more of a larger time frame. And I'm typically trading, especially for NASDAQ, I'm typically trading QQQ shares or QQQ options. The NASDAQ itself is a big beast. So again, I prefer to take a larger time frame, smaller trades, hold for a longer time period. So QQQ shares or QQQ options. And again, I'm mainly looking at options traders, how they're positioning, and then reactions at key levels. So again, I just pointed out potential short setups at the 14,600 level. It took a while for that to play out. And then I'll pull back to the 14,557 level. That is NDX. So that's the kind of thing I'm looking at. Let's go check hero for the NASDAQ now. And hero has been trending lower, just like the S&B 500, from about 11 AM as price approached highs for the day. And now it looks like it has shifted notably more bearish. We'll go back to book map. So for NASDAQ, this level, the 14,550 level, that is NQ, as well as the QQQQ354 level, did act as support earlier. So if price goes through that level, it may chop around for a while like it's doing now. So the move lower that started here just after 2 PM was good for about a 40-point move lower in NASDAQ, or a 1-point move lower and a little bit less than 1-point move lower in QQQ. Confirmed by falling hero, falling hedging flow, cumulative volume delta, iceberg orders, and sell-stop orders all sloping down. Right, so NASDAQ finding support at QQQ354, NQ 14,550, and also VWAP is at that level now. And VWAP is this light blue line. Let's go take a look at the S&P 500. And NASDAQ, to me, is clearly more bearish than the S&P 500. What easier to read. Now the S&P 500 moving up above the upper weekly expected move. Let's see what options traders are doing. And we'll go to a 30-minute rolling window. And it looks like now they are starting to take positive delta positions and prices responding. And maybe Trader Pete or JEC or anyone else may have thoughts on this. Bullish Friday, bullish Friday afternoon. I would think to look for a continuation of the move higher. I don't know, what do you think, Trader Pete? Thank you. So Trader Pete says he's thinking the same thing. Let's just take a look at this SPX chart again. So remember, 4,300. Actually, let's go to the one-day one-minute chart. And again, 4,300 is beckoning just above. That may be a stretch for today, but certainly next week. Let's take a look at, we'll take a look at the spy chart. And here's the 430 call wall, just two points higher. And Trader Pete asked a very good question. Is it common to magnetize the JP Morgan collar strikes on the call walls? And yes, it is. That is a very common occurrence. So the next, I think for the May expiration, there are, I think, three JP Morgan mutual funds that trade options to hedge their delta exposure. And they expire every month. And the primary fund is the one with the quarterly expirations, the March, June, September, December. And that's what's coming up. So the strike for the May expiration was actually, I think, 4190. And on May 31st, I think the SPX closed at that level. And I don't recall. Let's see what the, on May 31st, the call wall still at 4,300. So call wall a little bit above the strike for the May JP Morgan fund. So again, what JP Morgan is doing is they will buy a put spread and sell a call. So they're buying an out-of-the-money put spread in SPX. And they're selling an out-of-the-money call to hedge a portfolio, an equity portfolio. And they do that, again, in three different funds. And the one upcoming is the June expiration. And let's just take a look. I'm going to go to thinkorswim. And I believe from what Spot Gamma indicated, that the JP Morgan short call, call or strike for June is at 4,325. So this is the quarterly expirations into the month. And let's just see if that could be the case. So there's the 4,325. So I'm looking at open interest here. And that is the case, most likely. Let me just show you what I'm looking at. I'm looking at open interest in this column right here. And that is over $41,000 at the, and that's actually at the 4,320 strike. So that is the short call strike of the JP Morgan caller at 4,320. So it is certainly highly likely that SPX will trade up to that level by the end of June. And that as price SPX approaches that level, that will become more and more of a magnet. It will be the gamma will increase, and it will become more important. Again, that 4,320 level is the short call in the JP Morgan caller that expires at the end of June. So thank you, Trader Pete, for that question. So for today, at least, it looks like this SPY 428 level. And the upper weekly expected move are somewhat containing price. Let's go take a look at NASDAQ again and see if support held or if it fell below those levels we were looking at. So it looks like so far the 354 QQQ and the NQ 14,550 level held a support. Order flow continues to be bearish. Let's take a look at hedging flow. So there's the S&P 500 shifted bullish. Now maybe shifting bearish again. Let's take a look at NASDAQ. Let's go back to a one-day rolling window period. So NASDAQ hedging flow continues to be bearish. All right, let me check for questions. All right, so Alex asked, what about the amount? We, I assume the S&P 500, gapped up this morning. Surely it's going to pull on back to the imbalance next week. Maybe so. That is not something I look at. My analysis and what I'm showing is strictly based on the options market. And how, again, that's my analysis. Planning is based on shifts in gamma levels primarily and how market makers are positioned on the gamma curve. Like I talked about my whole presentation. So planning and analysis based on market makers position and then my trading execution part is based on order flow and book map. Again, just like I've been talking about, order flow and hedging flow. And how price reacts at different levels. So again, that may very well be the case, but it's not something that I consider on my analysis. All right, let's take one last look. So we know NASDAQ hedging flow continues to be bearish. S&P 500, looking back at the entire day, continues to be bearish as well. And let's take a look at book map. And NQ still is making lower highs. Hedging order flow continues to be bearish. I'm looking at the falling lines here in the sub chart. Let's take a look at the S&P 500. And DDD929 asked, do you look at the rate of the dollar and the VIX? I really don't look at the dollar while I'm trading during the day. It is something worth keeping track of. But I do look at VIX. So let's just take a look at VIX here. And VIX has been falling continuously. So this is Wednesday, Wednesday, Thursday, Friday, continuing to fall. Since Wednesday, a high of 18.4. And down, this is probably, let's take a look at a yearly chart, a low for the year, for last year, 14.62, the current level of VIX. So yes, I do look at VIX. And this has been definitely supportive of long trades today. Right, that's all I have. We looked at some great, reviewed some great setups this morning for both the S&P 500 and NASDAQ. For NASDAQ, nice, short, and long. And for the S&P 500, primarily the long setup at 10 AM. And then some short, some setups and stocks, shorts and longs. And I'm expecting, not expecting any move lower, really, in the S&P 500 for the remainder of the day. We'll see you on that, I can always hope. Anyway, I want to thank you for watching. Thanks for your questions and comments. Have a great weekend. And I will see you on Monday. Bye.