 Right, I'm waiting for YouTube to catch up with Discord. It doesn't seem to be displaying. I'm just going to go ahead and get started here. Okay, happy new year everyone. Welcome to 2023 and welcome to Options with Doug, streaming live daily on the Bookmap Discord and Bookmap YouTube channel at 1.30 p.m. Eastern time. Before I go any further, let me go through the disclosures. All Bookmap limited materials, information, and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations. Risk disclosure, trading futures, equities, and options involve substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. And as a reminder, the focus of my presentation as well as the Options with Doug chatroom and Bookmap 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 that is based on positional analysis. And I look at how traders and market makers are positioned in the options market and how those positions shift from day to day to develop a thesis regarding the trading range for the day as well as a directional bias. And the second part of my process is execution. And I look at real-time order flow in Bookmap and real-time market maker hedging flow in Spot Gamma Hero to confirm my thesis and for setups to look for setups. And on topic questions and comments are welcome both in Bookmap Discord as well as YouTube. And let me just check on YouTube again. And it does not seem to be catching up. Hold on just a second. I'm going to try and get YouTube started again. Okay, still YouTube is not catching up for some reason. All right. So I'm going to just go ahead and proceed. So again, on topic questions and comments are welcome. And please post your questions and comments and options with Doug. Okay, again, happy New Year everyone. Good afternoon. Glad you're here. And let's get started. So my agenda for today is first of all, I want to do a quick recap of last week. And I posted a sequence of charts in Bookmap Discord showing the, if you recall from last week, I showed how the SPX call gamma for the January 30th expiration was centered at the 3835 strike and that it was the JP Morgan short call of the JP Morgan collar. And the point was how the gamma increased at that level at the at the money level. And then the wings narrowed. So it increased the peak increased and the wings narrowed until the finally I took a screenshot of the options chain for SPX after the close on Friday, showing that the delta below that level 3835 actually, I think SPX closed just a little bit above that was essentially one. And above that level, it was essentially zero. So that is why remember gamma is just the rate of change of delta. And as expiration approaches, the at the money gamma is the greatest. So you can see right at the money that gamma would quickly change from zero to one. And then out on the wings, there was no change. So that was interesting. And then the last last thing that I want to point out is the final setup with that 3835 strike. Let's take a look at at Bookmap first. So the I posted this, I posted this on Twitter and on Bookmap Discord showing this reversal. And this was late in the afternoon. It started around 245 3pm Eastern time and showing the setup and all the the confluences and confirmations that led to the reversal higher at the 3800 SPX 3800 put wall. And let's just take a look now at hero showing that traders were buying SPX and spy calls and selling puts. And that happened maybe an hour and a half before the reversal actually took place. So there was the the divergent setup. And then once you see that you go to bookmap and just wait for the reversal to happen at a key level. And it couldn't happen at a better level than the SPX 3800 put wall support level. And that was that level was noted as support in the and the AM founders note. And hold on just a minute. I'm going to change my mouse pointer to something a little bit larger, make it a little bit easier to see. Okay, so that should be easier. So we're I'm looking at the 3800 SPX 3800 put wall as support. And it tested that level several times. And then finally started moving higher. And you can see the green dots coming in here and here. Now this might have been a false signal, but the, you know, the final reversal higher. And you could wait for a a higher high before entering. And again, the green dots. So this is the list of confluences and confirm confirmations that led to that setup. And the tall, the target was the call wall, the SPX 3835 again, the JP Morgan collar strike, and also the spot gamma call wall. So that's enough of that. I talked about that extensively last week, and just wanted to point out that I posted a summary in bookmap discord. Okay, so that's out of the way. And now the rest of the, what I want to talk about for today is looking forward to this year. What, you know, what, what can we look at going forward? Then we'll go over some of the data that's coming out this week. Economic data. There is quite a amount of quite a bit of economic data coming out this week. And I'll talk about that. And then again, talk about looking forward to the 20th January expiration. And then positional analysis. And then setups. Okay, so looking forward to next week, or the this year, this month, the next thing we have changed our focus now from the 30th of December expiration to the 20th of January expiration. And that is typically a large expiration. And traders will often enter long term options positions in the January expiration. So one thing to look for is a put dominated expiration. And Spot Gamma has talked about that in their, in their notes. I don't know if you recall last year, the options market was had rallied and the S&P 500 had rallied up until the end of the year. And the January expiration was call dominated. And that call domination means that traders were long calls, market makers short calls. And as price dropped, so they were long, long futures to hedge their delta exposure. And as price dropped, they could sell their, sell their long futures. And that contributed to the drop in the first part of the year. And again, remember, this is 20th January expiration coming up. And we're looking for the opposite potentially this year. Traders are long puts and market makers are short puts. So their short futures to hedge their delta exposure. As those puts expire, market makers can buy back their short hedges. And that that's a could potentially lead to a a Vanna rally. So just something to keep an eye out for. And we will watch that closely as 20th January expiration approaches. Okay, the next thing that I want to talk about is the economic data this week. So this is the economic data for the United States starting tomorrow through Friday. And today there were some data that came out. I don't know how much of a market move mover it was global PMI and construction spending. And then tomorrow the and this is bits and pieces of data. This is tomorrow the ISM manufacturing or manufacturing PMI and a little bit further down. And this could be this could definitely be a market mover is the FOMC minutes. And that is at two PM Eastern time. So something to keep an eye on there. And let's go down down the list. And then on Thursday, whoops, go back to Thursday. There's jobless claims. And then it looks like some Fed speakers and PMI data coming out at 945. And then finally the the big data this week besides the FOMC minutes would be the employment situation report at 830 PM Eastern time on Friday. And then also the non-manufacturing PMI coming out at 10 AM. So this week, again, there's a fair amount of economic data coming out. And this could have an impact on how traders position are positioned going into the data, especially the the employment situation report and also how price action reacts as the data is reported. All right, so let's look at our position analysis now. And this is the ES, the S&P 500 futures. And let me just check on YouTube and hold on just a second. Okay. Yeah, for some reason. So I'm having technical difficulties today. It could be related to that. I think it may be a network problem. And I'll show you with stocks in just a moment. I'm not getting any DX feed data or limited DX feed data. So anyway, let's take a look at our position analysis today. And first of all, support and resistance levels that are in play today are shown on this chart. And I have two columns shown here. This is the cloud notes from spot gamma. And this is showing SPX levels, like this 3850 there, that's SPX converted to an equivalent ES level. And right now, spot gamma is adding 25 points to SPX to come up with an equivalent ES level. And also there are combo levels, which are a combination of SPX and SPI levels converted to an equivalent SPX level and converted to an equivalent ES level. And there's a question, do I convert them myself or spot gamma does spot gamma does that conversion is automatic. Now, I convert SPI levels to ES. And that is shown in this column here, C levels. And I'm using my own cloud notes. And I feel I add these levels to a spreadsheet. And I calculate the relationship between SPI and ES every day or two. So here, I'm showing this 386 volatility trigger is the SPI 386 volatility trigger. And notice that it acted as resistance today. So there's a quick spike up to that level. And then price dropped lower. And you can see the shift from the green dots here to the pink dots. So aggressive, there was a looks like a little bit of a stop run up into that level. And then aggressive traders started selling. And we'll see when we look at hero that that options traders were in there as well. So this is this is ES for today, showing the important SPX levels and SPI levels again on these two notes. And there's a fric ask, if I sign up for spot gamma, I get access to the cloud notes for book map. Yes, that is part of the service for all for all their levels of service. Okay. And one interesting thing to note also is the the volume concentrated, the high volume nodes note, you know, the first high volume node. And this is basically this is mainly from pre market at the volatility trigger and the 3850 level. And then now the volume is concentrated more at this SPX 3800 level. So those are the two high volume nodes for the session this morning or today. All right, shifts in levels. And there were some some minor shifts in levels. And some of them, I think are well, some shifts in levels, just go over the levels. So for the volatility trigger, both SPX and spy, the volatility trigger increased just slightly for SPX, it increased from 3825 to 3855. And for spy from 384 to 386. And I think the most significant shift is the shift in the put wall for SPX from 3800 to 3700. And also the call wall, as you recall from last week, the call wall was at the 3835 level again, the the JP Morgan short call on the JP Morgan collar. And that was at 3835. And now it has shifted higher to 4000. So the influence of that 3835 strike is gone now that that collar was rolled out to the March quarterly expiration. And as that approaches, we'll we'll focus more on that. So for right now that 3835 level is gone. And the call wall has shifted up to the 4000 level, which is also the key gamma strike for SPX. And now let's let's take a look at the SPX levels or the S&P 500 levels, both SPX and spy. So here is the 3700 put wall. And just to clarify, I want to make sure everybody understands this, that it is a it's a calculation. This put wall is a spot gamma proprietary level. There is one per instrument. So spy has one put wall, SPX has one put wall, and it is simply the strike with the largest net negative gamma. So this chart is showing put gamma or negative gamma with a teal bars below the zero line and call gamma or positive gamma in black bars above the line. So this is simply calculated by subtracting put gamma minus call gamma and coming up with the greatest number. So this, even though there's more put gamma at 3800, this difference is greater. So 3700 is the put wall. And that can be act expected to act as support. And for today, if you recall from the ES chart that spot gamma also called for support at the SPX 3800 level. So 3700 is the put wall and 3800 has been acting pretty much as support close to support today. There was a has been a little bit of a breach lower. And then the 4000 level is still the absolute or key gamma strike as well as the call wall. And that is the SPX levels. Let's take a look at spy now. So the only level that has shifted for spy from last week is the volatility trigger. Otherwise, the put wall remains at 380 right here. And there's also significant gamma down at 375 and 370. And this is also the key gamma strike or absolute gamma strike. And that is the strike with the largest absolute gamma, adding both the put gamma and the call gamma and taking an absolute number of that. And then 390 is the call wall. So that's the playing field for SPX and spy today. Okay. And let's take a look at some data now to the founder's note. So this is for today. The AM founder's note, the key piece of data that I focus on every day is gamma notional. And this shows market makers position on the gamma curve. And I look at how this shifts from day to day and also these absolute levels. So this is showing that market makers position is still negative gamma. And that means that traders in the S&P 500, so that would be the SPX and spy, are still long puts, market makers are short puts, and they have to sell futures as price decreases to hedge their delta exposure. And they can buy back those short futures as price increases. So in a negative gamma environment, they are trading in the direction of price, and this tends to increase volatility. So there were some shifts from last week. Minor shift down in gamma notional for SPX from minus 304 to minus 366. And there's actually a shift up or to less negative for spy, which is unusual to see that the movement in opposite directions. But last week, and I compare morning to morning. So this is from Friday morning to today, Tuesday morning, that on Friday morning SPX or spy, gamma notional was minus 1594. And now it has shifted to less negative to minus 1292, but still negative. So market makers are again positioned, their position on the gamma curve is negative. Okay, and let's take a look at Vana charts, which are a graphical illustration of this position. So this shows market makers delta notional or delta exposure on this vertical axis with changes in price shown on the horizontal axis, as well as changes in applied volatility. And that's shown by the green curve. And that is the the Vana effect. And what this is showing and the way to interpret this is just to draw a line through this green chart. That's the current expiration. And we'll talk about the black line just a moment. This again is showing that market makers delta notional delta exposure increases price drops. And they have to sell futures to hedge their delta exposure. And as price increases, they can buy back their short futures. And the black line shows how that delta exposure changes with as time passes. And that's the charm effect. And we can take a look at how that has changed from day to day. And that's for SPX. And spy just shows the same thing, but it's more the gamma notional is more negative. So the line is is deeper. Okay. And any questions about that? All right, so let's take a look at some setups now. First thing that I want to do is I'm going to take a look at spot gamma hero. And this is for this is for ES, I'm going to zoom in a bit. So I was primarily looking at this in the morning. And this shows this is showing options trades both calls and puts for SPX and spy, and showing the hedging impact on ES futures. And the thing that I noticed this morning was this divergent setup. And it happened pretty early note the time here is 9940 to 945. And let's just see, zoom in clear that out. So we can zoom in a little bit closer and see the see this setup here. So it looks like traders started, they were initially buying calls that show by the orange line, and they start selling calls. And then they start buying puts, and then price reverses lower. And let's go back to the ES chart now. So that corresponds with the this reversal at the, let's just zoom in on this. I'm not getting any response there. There we go. Sorry about this. So there's the reversal shown a little bit more clearly at the 386 volatility trigger and the ES 3,900 level. And note the difference that the shift from green dots to pink dots. And the blue line shows that large traders were selling with iceberg orders. There were sell stops firing, and that's shown by the yellow line. And then finally, aggressive traders were selling. And that's shown by this dark blue to pink line. So there's the reversal setup this morning. And let's take a look at, let's go back to hero and look at spy. And we'll see the same thing. And there's that slight divergence. You know, it looks like about maybe five minutes. But hero starts to drop lower before price. And then there were all the confluences in book map that we saw. The icebergs, the stops, the aggressive traders, the shift from green dots to pink dots. Okay, let's go back to book map. And now I'm going to show you spy. All right, this is the this is the problem I'm having today is no data. Other than this best bid and offer. So there's no volume, no, no transactions shown here. I'm just seeing the again, the the best bid and offer. So I'm trying to get this resolved. I've sent a support request to book map support. Haven't heard anything yet. I've been having network issues for a while, and I suspect that is the problem. And I've been actually trying to get that resolved this morning. But anyway, I have no other than the for stocks for DX feed, I have don't have any transactions. I just have the best bid and offer and J ask ads. Yeah, Spot gamma has links for book map for ES NQ and RTY, but no spy and QQQ. And I have, I've sent my spot gamma wish list to, to Matt, the CEO of spot gamma, and asked for that for stocks, including spy and QQQ. So if anybody else, if that appeals to anybody else, please send your request to info at spot gamma.com for cloud note links for stocks for book map. So anyway, this is spy. No transactions just bid, best bid and offer. But again, we can see the the reversal lower at the 386 volatility trigger. Okay. So this is, you know, a little bit limited because kind of why I spent so much time on the S&P 500 this morning. Because I don't have a lot of stock data to show here, but there were some good setups. So let's go to Apple now. And another good short setup in Apple. Let's take a look at hero now. Let's go to Apple. So I'm just going to go over a few setups that I saw this morning. So one thing to notice is the weak hero signal here for Apple. And that indicates that the hero signal for today is the weakest that it has been in the last 30 days. And that's shown by the entire length of the slider here. And also the weakest that it has been in the last five days. And that is shown by the colored section within that entire slider. So that's one thing to note. And now let's open up the chart and notice there's just a very strong correlation between price action and options trades. And let's go back and take a look at book map now. So the reversal happens a little bit above the 130 put wall, which is also the 130 key gamma strike. And unfortunately, I don't have any liquidity targets here. And there are no spot gamma targets. But that's Apple. All right, the next one is Google. And again, same problem. This is a problem I'm having with all stocks. No volume. Just best bid and ask. All right, let's take a look now. Let's go to hero from Google. And notice again, another weak hero signal. And here's a very clear divergence. Let's zoom in on the morning a little bit. So this is a very clear, fantastic, divergent setup is traders were buying puts from the open, not doing a lot with calls. And price jumps up with everything else. And then quickly reverses lower just before 945. But this blue line dropping indicating again, traders are buying puts that was your clear signal that price could potentially reverse. And to look for a short setup, let's go back to book map and no spot gamma levels and play today. And no liquidity because I don't have any volume. But you can notice here the all this these little red dots, oops, with this large, large mouse pointer, it kind of screws me up a little bit. But anyway, notice the red dots, the cell sweeps coming in. So there's the Google setup, just a beautiful, divergent setup. The next is meta. And I haven't looked at it this morning. It looks like meta is kind of bucking the trend and moving higher. Let's take a look at a hero. And what I was looking at this morning was this, this setup here more of a confirmation, no, no divergent setup, just a confirmation, actually there was, I'm sorry, with puts. So traders were buying puts as price increased. And then price reversed lower with everything else. And Panama asks, are the lines printed automatically, are you doing it? And I assume you mean the horizontal lines on my chart. And most are done automatically. I use a an add on called price lines that's available in the book map marketplace. And I use that that works with my cloud notes. And that will draw the lines. And I can also specify the, whether I use a solid line or dash line, also the color of the line. So all the levels that I put in my cloud notes, the C levels are used, I use price, price lines to do that. And the lines are drawn. The only lines that I draw by hand are the lines in ES that are related to spot gamma levels, cloud note levels, that are not that are not the same as a level in my C levels in my in my spreadsheet. So I have to draw. And yes, you have to buy it. It's it's an add on available in the book map marketplace. It saves me a lot of time. And by the way, one other one other update that I have requested, I included on my spot gamma wish list was adding again the spot gamma levels for the for stocks. And that would be the five key daily levels. So again, that would save me a lot of time as having to change those in my spreadsheet every day and and update it. So again, if that's something that interest you, please please contact info at spot gamma.com. Alright, so let's look at the next setup. So again, the put divergence in meta this morning. Here's Microsoft and another put divergence. So initially, they weren't doing much with puts, then started buying puts and price started to decrease. Let's take a look at book map. Microsoft sharp reversal lower. No spot gamma levels in play. I can't tell if any liquidity was in play. But there's the reversal lower at around the 245 level to hero. So another good short setup at Microsoft there. And Netflix. And as usual, there's a strong correlation between price action and options trades. And here's another divergent setup with puts. This one is a little bit more clear. Traders were buying puts from the open, not doing much with calls. And price dropped, reversed higher, and then reverse lower around 945 with everything else. And first cast, do I have a coupon code for spot gamma? No, they don't offer coupon codes very often. May have to wait until next black Friday for a coupon code. All right. So there's the seven Netflix. Let's take a look at book map. And for Netflix, there's not a lot of range today. But here's that reversal lower. Here's that that short setup reversal at the 297 296 level down to the 290 level. And most likely there was higher liquidity at that level. And the next one was Nvidia. And it looks like more of a just more of a confirmation with the total signal. And let's go look at book map. All right. So here there there were and are spot gamma levels in play. And there is the the levels are the 150 key gamma strike and the 140 put wall. And the 140 put wall would have been that's target would have been the target for this drop lower. So there's the reversal lower at the 150 key gamma strike. And there's pencil sharpener man. I'm having an issue with YouTube today. It could be related to my network issue. I need to there's somebody I need to get in touch with after this. I don't know. I doubt if this is being recorded today. It's not showing up on on YouTube, at least from what I can see. I'm looking at looking at the YouTube screen and it's still showing the the original or the first splash screen trading options like a pro using book map. So sorry about that. Hopefully I'll get that worked out tomorrow. So back to Netflix Nvidia. I'm sorry. Another nice setup here. Reversal lower about the same time as everything else. And led by options trades. All right. Let's take a look at QQQ. And there was a kind of a short divergence reversal lower hero drops price follows. And notice here that traders are taking negative delta positions as price increases. So they start buying puts and selling calls. And then as price starts to drop to a certain level, they're taking positive delta positions. And then that doesn't work out. So they they start taking negative delta positions again. So that this is the behavior that often occurs in the S&P 500 is that traders will sell peaks and buy dips. Let's go look at book map. Go to QQQ. So here's a just like spy, a reversal at the volatility trigger. That's the 270 volatility trigger there and a reversal lower and some time spent at the 264 C3. That is a combo level with ndx and three indicates it's in the middle of the range one being the most important and five being the least important. So it's in the middle of that range. And then if price had continued lower, the 260 put wall would have been would have been a target for today and it may still be if price starts moving lower again. Let's go back and look at hero one more time. So here traders are definitely taking positive delta positions as prices down at these lower levels and they're buying calls. That's the orange line and Panamets asks, so as soon as you get your spot gamma levels, you get those price lines automatically right. And if I understand your question correctly, no. So the spot gamma levels, the cloud notes, if that's what you're referring to, I have to draw the lines by hand. I have to draw those manually using the horizontal line tool in book map. And that's that takes a couple of minutes. Most of the lines that are shown on my charts are drawn automatically and that is based on my C levels. So how long does it take to draw four or five lines on the ES chart a couple of minutes? Now it does take some time to fill out levels on my spreadsheets. Now for all my stocks, that's done in the add on and I'm just changing those levels in my spreadsheet and then I have to start the server and refresh refresh the add on. So let me show you what I'm while we're here. Let's look at Tesla and then we'll look at Tesla in book map and that'll wrap it up. So strong correlation between options trades and price action and that is from the open. And if you recall Tesla reported sales numbers, I think maybe over the weekend it was reported this morning. They came in less than expected. So there was negative news for Tesla, which is nothing out of the ordinary recently. Tesla has been extremely weak. Let's just see what they're doing. Some mainly puts driving. So traders are buying puts. All right, let's go to book map. We'll go to Tesla and I need to add more lines. So what this is showing, the sea levels, these are all of the lines that I have and I'm using this add on called price lines. And every morning I have to enter the new information on my spreadsheet. And then in the morning I have to stop start the server and refresh levels. So let me show you how that works. All right, so here's my spreadsheet and I have all my stocks in alphabetical order and what I'm going to do now and this tells the add on whether or not to draw lines. I'm just going to, I don't know what that's doing. Okay, so I told it now to draw the lines down to 100 and before they were showing it only down to 105. So I'm going to save that file refresh levels. So it draws the lines and that's based on my specifications for the color and dashed versus solid. I like to draw all my horizontal lines as dashed and then it'll take a little bit longer but it'll update the numbers here. And I just, I have my own color code so I use yellow for the the round numbers and then red for the zero and five round numbers and white with red numbers for the spot gamma levels. So the only work, the only thing that takes a little bit of time is when the spot gamma levels change and I have to update those in the spreadsheet. But I like to see lines on my chart and this is the easiest way to do it. So I hope that helped and anyway my time is up so we looked at a lot of great short setups both in stocks as well as the S&P 500 and we're going to keep an eye out on the 20th January expiration and look for put dominated, put dominated, put dominated expiration and look for potential Vanna rally. So we'll keep on keeping a high out on that and let's just take a one quick look at, let's look at equity hub here. So this is my watch list in equity hub and notice that the next or the top gamma expiration for everything is the January 20th expiration. So we're going to look at these numbers and see how they increase and then we'll check to see whether these stocks are call dominated or put dominated and right now especially the S&P 500 is definitely put dominated. So we'll keep a keep an eye out on that until expiration. So again that's that's all I have for today. Thank you very much for watching and for your questions and comments and hopefully I'll get my technical issues resolved shortly. So thanks again and I'll talk to you tomorrow. Bye.