 Hello, everyone. Welcome to Options with Doug, streaming live daily on Bookmap Discord and the Bookmap YouTube channel at 1.30 p.m. Eastern Time. 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. This 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 in 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 trading range and volatility for the day as well as a directional bias. And the second step in 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 for entries and exits. And when I talk about setups, I will be talking about setups in an underlying asset like ES Futures or Apple Stock. Those setups can be taken any number of ways with futures, shares of stock, or options. Questions and comments are welcome, and I will be watching both the Options-Doug chat channel in Discord as well as the chat in YouTube for your questions and comments, so please feel free to post, and I will do my best to answer your questions. Hello, Karma FX. Glad you're here. Welcome. All right, let's get started. My agenda for today, first of all, I want to go over news items, economic data, and events for today and for the rest of the week. Then I'll go through my positional analysis and then review some setups from this morning, and then we'll take a look at the live market. So when we get to the live market, if anyone has any stocks they want me to take a look at, I'll be glad to do that. All right, so economic data. Nothing significant today, but there are a couple of earnings reports after the close today. Netflix and Tesla, both report after the close, and that is really the first of the large cap tech stocks. Tesla is part of the Magnificent Seven that report, and then the remaining tech stocks, I think, start next week. And then for the rest of the week, tomorrow, let's see, tomorrow are just jobless claims. And then Friday is the July expiration, options expiration, that is the third month of the third Friday of the month, that is the monthly expiration. And I've talked about this before. It is a call dominated expiration. And let's just take a look at that again. What I'm talking about, this is the expiration concentration for SPX, right here. Let me zoom in on this chart. So this is showing Delta Notional at upcoming expirations. This line right here is the Friday expiration, the July monthly expiration. The orange bar is showing, this is call Delta Notional versus put Delta Notional. So when I say it's a call dominated expiration, this is what I mean, much more call Delta Notional. And a lot of this will expire on Friday. This is call, and call Gamma has been supporting the market. And a lot of that will come off. And let me show you what happens typically in a call dominated expiration. So this is a thinkorswim chart showing SPX and note that a market makers position on the Gamma curve for SPX shifted to positive around the beginning of April. And that was, let me see if I can find that. So right around here, this is where a market makers position on the Gamma curve shifted to positive and the start of the call dominated expirations. And let's see what happens. So these red vertical lines here are showing the monthly expiration. So that's April, May, and June. So let's see what happens typically after expiration in a call dominated environment. So that is April, May, and June. Anyone see a pattern there? Right. So there is some weakness mean reversion after the call dominated expiration that call Gamma that has been supporting the market comes off and the market again reverts a little bit. So there's no reason not to expect the same thing to happen at this July expiration. All right, Gray, I hope that answers your question. That's what I think about the the expiration. I think the there's no reason for this pattern to not to repeat itself, given the call domination and the calls that will be coming off after expiration on Friday. All right. So again, call dominated expiration, looking for a little weakness after the expiration. All right, let's get started with the positional analysis now. This is the S&P 500 futures ES futures and book map. And before I take a closer look at this chart, I'm going to take a look at a larger time frame back to SPX. And let me just really looking at this chart really messed up my other charts. Let me just go back to something else here. Sorry about this. I may not be able to get it back to where it was. I don't remember the style that I had before. All right, so we're going to have to skip that for some reason. Same thing. I don't know why sometimes. So that's a thinkorswim issue. Anyway, we'll just stick with this chart, the book map chart. So that's a thinkorswim issue. Anyway, we'll just book map chart. So what this is showing is let me point out the levels on this chart. Let me check one other thing. It really messed up all my charts. I don't know why it made all of these the same style. Let me see if I can find my style. All right, that's sorry about this. I'll get this fixed in just a minute. Okay, there we go. All right, so let me point out some levels on this chart. So first of all, this is a 30-day one hour chart for SPX. And note the uptrend continues. Again, 30-day one hour chart. Let me point out some levels here. So first of all, I've got the lower and upper weekly expected move. This is based on the options market. So this chart is showing that SPX is trading above the upper weekly expected move. The dashed lines, dashed blue lines, are showing the lower and upper daily expected move. And so far that has been resistance for SPX. There are some spot gamma levels on this chart. First of all, there's the put wall. That's the strike with the largest net negative gamma that can be expected to act as support. That's not in play. And that level actually remained the same from yesterday at 4,300. The next level up is the volatility trigger that has spot gamma's proprietary gamma flip level. Below that level, market makers position on the gamma curve is negative. In a negative gamma environment, market makers 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 the volatility trigger, market makers position on the gamma curve is positive. In a positive gamma environment, market makers have to trade against price to hedge their delta exposure. And that tends to subdue volatility, leading to more trading range days, range days rather than trend days. And then the next level up is the 4550 level. And that is the absolute gamma strike. That level did move up from yesterday from 4,500 yesterday to 4550. And then finally the call wall at 4,600. That's the strike with the largest net positive gamma that can be expected to act as resistance. And that level also moved up from yesterday from 4550 yesterday to 4,600. So for SPX, volatility trigger shift a little bit lower. And then the call wall and absolute gamma strike both shifted higher. And that's bullish. When the call wall and absolute gamma strike shift higher, that is, again, a bullish indication. So I'm not sure how to pronounce your name. KJ asks where to find these levels, theory behind them and interpretations. So if you're new to this, go to spotgamma.com and go to the free resources. There's plenty of information on the free resources available to subscribers and non-subscribers. And in addition, Spot Gamma also has a great YouTube channel. So both of those are great resources to find more information about this. But I would start at the Spot Gamma website. All right, let's take a look at a shorter time frame to see the level center in play for today. And sorry, my charts are messed up. I'll get that corrected for tomorrow. I don't know why looking at one chart affected all these other charts. So anyway, here's the levels for today. There's the 4450 absolute gamma strike call wall up above and note the upper daily expected move acting as resistance. All right, so now let's go back to the bookmap chart. On the bookmap chart, I've got my own cloud notes. And I'm showing SPX and spy levels on this chart. Also the upper daily and weekly expected moves for ES. So here's the upper daily expected move for ES. And ES is traded up above that level a little bit now below. And then here's the spy 455 absolute gamma strike and call wall and note for spy. All the key daily levels shifted higher volatility trigger shifted higher put wall shifted higher call wall and absolute gamma strike both shifted higher to 455. And so right now, the SMB 500 is trading just above that spy 455 absolute gamma strike call wall in a pretty narrow range today. And that is typically what I expect in a typically what I expect expect in a positive gamma environment. All right, so I've talked about shifts and levels higher, all pretty much bullish for spy and SPX. All right, let's take a look at NASDAQ. And for NASDAQ, mainly QQQ levels are in play. Note the QQQ levels are shown here. That is not a spot gamma level. This one is so 385 for QQQ is the absolute gamma strike. Also the call wall that level did move up the absolute gamma strike moved up from 380 yesterday to 385 call wall remains at 385. And also for QQQ the volatility trigger also moved higher. All right, so the 386 level this morning was acting as support. And now it may be the 385 level acting as support. We'll talk about setups in a few minutes. All right, so for the NASDAQ shifts and levels for QQQ the volatility trigger shifted higher the absolute gamma strike as we see here shifted higher. And then for NDX the volatility trigger call wall and absolute gamma strike also shifted higher. So overall very bullish shifts higher in levels. All right, let's take a look at some additional information here. All right, so we've looked at the expiration concentration while we're here. We'll just take a look at spy also very call dominated as well as QQQ also call dominated. I'm going to skip over the Vantamodel. It's pretty much looks the same every day in a positive gamma environment and we can confirm that here by looking at gamma notional. This is market makers position on the gamma curve for SPX, spy, NDX, and QQQ. All positive. And these levels all shifted higher except for QQQ and it remained about the same. 239 yesterday 237 today. So market makers position on the gamma curve is very positive in a positive gamma environment. Market makers have to trade against price and that tends to subdue volatility leading to the expectation for more of a range day. So my expectation for today was lower volatility looking for a range day and also bullish. So looking at a really in a range day taking the long setups rather than shorts. So that was the thesis for the day. All right, one thing that I want to take a look at is give me just a moment. I want to bring this up from yesterday before I start to review setups. So this is spot gamma hero from yesterday and we'll take a closer look at this chart for today. I just want to point out yesterday what this chart is showing is price for SPX with a white line. And these this orange line is showing calls. The rising orange line indicates that traders are buying calls. The orange line is all expirations. And note the notional value here is a massive 8 billion. So that's yesterday. And this is the combined signal for S&P 500 showing options trades for SPX, SPY, XSP and ES futures all under one combined signal. And this number is huge. So that is the notional value at the end of the day. And I've never seen it that high. And yeah, that is a crazy amount. So that is all expirations. And the green line is showing zero DTE. So that notional value is four billion. That's just right around half of the total. And that is the again, the call notional value. Positive traders were buying calls, buying both zero DTE options that expired yesterday, as well as all expirations. And probably a good bit of that was options that expire on Friday. So if they're, and you know, you just remember the steady mechanical uptrend yesterday. And that was what is driving it. Both the zero DTE as well as the all expirations, which includes the zero DTE, that was what was driving the market yesterday. And just as you know, to be complete here, these lines are showing put transactions. The dark blue is all expirations. And the lighter blue is showing zero DTE. So traders were buying calls and were, they were also buying puts. But call buyers were definitely in charge yesterday. And I'm looking to see if I have a chart that shows just the total. Here's a chart from yesterday that shows the total combined signal. It doesn't go all the way to the open to the close. So that combines calls and puts. And again, this is from yesterday. All right, let's take a look at setups for today. So this is the S&P 500 signal for today. This is live. And again, this is showing a combined signal for the S&P 500, SPX, SPY, XSP, and ES futures. On to one combined signal. We'll zoom in on this chart. And this is showing, again, price. Let me zoom just a little bit. So we're starting right around the cash open, which is right here. So this chart is showing SPX price and options trades, again, a combined signal for SPX, SPY, XSP, and ES futures. And it's after a couple of dips, after a dip this morning, it has been on a steady uptrend. So traders continue to take positive delta positions, not nearly of the magnitude as yesterday, but it's steady, steady uptrend. And again, just like yesterday, traders are buying calls and buying puts. And the call buyers are more aggressive. Note the notional value here. Positive 4.8 billion versus minus 2.26 billion. So they're buying calls and buying puts. Now let's take a look at some setups. So really looking at this as a kind of a confirmation, one of the things that I like to look for is hero as a confirmation or potentially as a divergence, a leading indicator. And really using this, the only setup was right around 10.55, a long setup. Remember, a long bullish thesis. And this must have been some news. I could not find what exactly caused this. There was something about Russia and Ukraine. Maybe that was it. But anyway, sharp spike down and immediately, traders start taking positive delta positions. And then it takes just about a minute later that the S&P 500 responds higher. So it took a while for that. And otherwise, there was a pretty sharp rally right in the first few minutes in the morning, then chop, sharp drop lower. Traders start taking positive delta positions and the ES moves higher. Let's take a look at book map now. Let's go back to ES and let's we'll zoom in on this. And it looks like some sell iceberg orders were triggered, as well as sell stop orders that shown by the falling light blue line for iceberg orders. And also the falling yellow line showing sell stop orders. And then aggressive buyers start to come in just below the spy 455 level as traders started taking positive delta positions. And the ES then moves back up to the upper daily expected move and above. So for the S&P 500, that's really the only good setup that I have this morning. I want to show from this morning. Let's go back to hero and note here just right around 12, 12, 15. There was a pretty big departure between price and hero. Options traders still continue to take positive delta positions overall, still buying calls as price drops. All right, let's take a look at NASDAQ now. So not really much of much clarity here for me. Let's go take a look at book map. Some days there is quite a bit of clarity with options trades and hedging flow and price action. And some days not so much. We'll take a look at stocks too. And there were some interesting setups in stocks. All right, so here's NASDAQ. So reading order flow. And again, the expectation was for a range day. Overall, price moving lower and really started to be driven by stop orders, sell stop orders just afternoon. Otherwise, NASDAQ was in a pretty choppy range, trending a little bit higher than this is the news that came out just before 11 a.m., kind of stopped an uptrend, maybe a reversal higher at 387. Price recovered and then bounced off 387 a couple times, then reverse lower. All right, let's take a look and see what might have caused that reversal lower. So for that, we're going to go to Apple. So Apple had its AI moment today. Remember Microsoft yesterday made an announcement in the morning and Microsoft, I don't know, jumped 20, 25 points in the morning. So today, just afternoon, Apple announced something about building an AI framework, price jumped higher, and then reverse lower. So let's take a look at Hero for Apple. And then we will take a look at Microsoft and see how it responded as well. So let's go to Apple first. And I'm going to zoom in before the event. Just write, let's see if I can get this. So just right before the event, note the steady rise in Hero as price is chopping up and down, and then price starts to finally move higher just before 11, making a higher low here. And let's see what traders are doing. So they're buying calls, that's shown by the rising orange line. So note this steady increase in the orange line, traders buying calls, maybe they knew something in expectation for this announcement. But this is before the announcement, right before noon, just this steady uptick of call buyers right before the announcement, then let's see what happens. We'll zoom in on this. So price jumps higher just right afternoon, maybe 1204, something like that, when the announcement comes out. And then traders start selling calls. Note the flat put line, they're not doing much with puts. So price action pretty much all driven by calls. All right, so that's Apple. We'll go take a look at Bookmount. So again, there's the announcement. This is showing at about 1203. Note the buy sweep, shown by these small green dots, that's the sweeps indicator, and then these sell sweeps. And you can see the, so that's shown by the green dots, the red dots, the bright red dots, and then these pink dots, these are volume dots. So note that aggressive sellers start to come in as price rises. Price drops, traders start selling their calls. And price now is, looks like it may be returning back to the original level, back to the scene of the crime. Well, let's just go back and take a look at Hero. And note that 195 is the call wall in the key gamma strike. So price jumped up above that level, and now is trading just below it. Let's go back to Bookmount. So 195 is the call wall key gamma strike. And note all the liquidity at that level that came into the order book right at the cash open. And there was buy sweep up through that, and then aggressive traders started coming in and selling. And now Apple is finding resistance as expected at the 195 call wall. All right, so that's Apple. Again, finding its AI moment today. Let's take a look at Microsoft now. And John Wick says, what a move for Apple that is usually known for creepy moves. I'm, I assume you mean very slow moving. And yeah, so, you know, that was what I thought was one thing that was interesting this morning is that Apple was just chopping around in a, in a very narrow range right up until they announced trading in a narrow range, then starts to uptrend slightly as traders were buying calls. Again, maybe they knew something. All right, so that's Apple. Usually a very slow moving stock. As John points out, right, here's Microsoft. And for Microsoft, note that 360 is the call wall. And let's check this time. So this is also 1203 right here. So this morning, Microsoft was chopping around in a pretty narrow range, a little bit wider for Microsoft. It's a little bit more volatile than, than than Apple, but making a series of lower highs. And right when the Apple announcement comes out, Microsoft drops lower finds resistance at the 360 call wall and drops like a rock. Let's go take a look at hero for Microsoft. And then we'll circle back to the NASDAQ. So up until this announcement, traders were really taking positive Delta positions. And as soon as the announcement came out about Apple, that shifted. Let's see what traders are doing. Not much with puts shown by the blue line. That's still pretty flat. So right before the announcement, they were buying calls. And then as soon as the announcement, they started selling calls. And they continue to sell calls. One thing to keep in mind is with Friday's expiration, I mentioned the call domination of the index products. And that is also true for for stocks. So let's take a look at Microsoft and an equity hub here and note that almost 37% of gamma is expiring on Friday. So Microsoft, like the index products, is is call dominated here. Note the orange line starts to shift lower than the blue line. That's indicating call domination up over up around above around 345. These calls as expiration approaches, they will quickly start to lose value unless traders continue to buy calls. These calls will start to lose value. When traders buy calls, market makers sell the calls, they have to buy stock to edge their delta exposure. And if the calls start to lose value, market makers delta notional will decrease and they can sell their long stock edges. So that is also in play as expiration approaches. And that is the case for many of these stocks actually that's go to my watch list. I'm going to sort this by next gamma expiry. We'll talk more about this tomorrow. But there are quite a few stocks. The number that we want to look for is anything greater than 30%. So quite a few of these stocks are potential candidates for a call gamma unwind. So this is Microsoft, the reaction to the Apple announcement, finding resistance at the 360 call wall. Let's circle back to NASDAQ and see if there's any correlation between the movement in Apple and Microsoft and NASDAQ. So it looks like it takes a few minutes. But NASDAQ starts to move lower as Microsoft moves lower and Apple Apple and Microsoft both moving lower. Those are, I think, the two largest stocks in NASDAQ starts to move lower. All right, John Wick asks, is there an indicator for iceberg stops for equities like the MBO bundle? And no, I wish there was, but the MBO bundle utilizes data that only CME provides. So stops and icebergs or this MBO data is only available for CME futures and rhythmic is the only data provider that provides that information. So what John is talking about is this stops or icebergs here with the light blue line and then stops with the light yellow line shown here and here and also with these on-chart indicators, iceberg orders, stop orders. So this information unfortunately is only available for futures, for CME futures. And note for stocks, I, you know, there again, no MBO data, but I do use the absorption and sweeps indicator indicators. And that's what's shown over here by sweep. And then, and that's pointing to green dots here and then a cell sweep. So I'm talking about the bright, small, bright green dots and small, bright red dots. All right, there are a couple of other stocks I wanted to take a look at. Let's take a look at Amazon. And then we'll get to the live market. And if anybody has any stocks that want me to take a look at, please let me know. So I, you know, again, Apple and Microsoft were definitely the most interesting today. And let's go back to Hero, go to Amazon. So note that 135 is the call wall, the key gamma strike. And this morning, traders were buying calls. So again, when traders buy calls, market makers sell the calls, and they have to buy stock to hedge their delta exposure. And for Amazon, as long as this behavior continues, there will, market makers will have to continue to buy stock. So right now, traders have stopped buying calls. And that really happened, right around 1030, they stopped buying calls. Notice how the orange line pretty much flattens out and price consolidates. And if they start selling the calls, price will most likely move lower. Let's go back and take a look at book map. Remember 135 is the call wall. So there's the call wall. And now price is rotating up and down around that level. And note that most of the volume for today is concentrated right at that 135 strike. That's the chart range volume profile, and the session range volume profile. And that is also, and it's, you know, pretty obvious from looking at the volume profile, that's also the point of control, which is shifted higher, right to the 135 level. Right. The next was meta. Let's go take a look at a hero. Just leave calls and puts. So traders were buying calls and meta as well. And they're also selling puts. Let's just zoom in. So note, both these numbers are positive. Positive orange number indicates traders are buying calls. Positive blue number indicates they're selling puts. And the call wall is up at 320. Key gamma strike at 310. Let's go take a look at a book map. So call wall up above potential target of price moves back up. That's right here. Note all the liquidity in the order book that came in at the cash open. Steady uptrend up until about noon as traders continue to buy calls. All right. Again, does anybody have any stocks they want me to take a look at? All right. Let's take a look at the live market and see what's going on. So S&P continues to move lower. Now down to the upper weekly expected move. That's for ES. And now below the SPY 455 call wall. And also below the SPX 4600 call wall. Let's see what options traders are doing. See if they're continuing to buy calls on the S&P 500. And now it looks like options traders at least for the time being have given up. And John Wick asks, would you choose ES or NQ for trading? And in a positive gamma environment where I'm looking for lower range, I lean toward NQ. I prefer NQ or any QQQ or NASDAQ futures or QQQ. It's what I prefer for an index product in a positive gamma environment. There's just more movement, more follow through. And D&T Matter has asked, did you mean ES is below the SPY call wall? You said SPX. So I think I said both. So now the ES is trading below the SPY call wall at 455 and trading below the SPX call wall. It's been trading below the SPX 4600 call wall all day. So let's go back to book map. Sorry if I was not clear about that. We'll go back to book map. So here's the SPY 455 call wall. And let's just scrunch this up a little bit. And here's the 4600 call wall. Oops, I've got the wrong label there. But 4600 is the call wall. And that's up there. Right now there is about a 31 point difference between ES and SPX. ES minus SPX is 31 points. So that's why the SPX call wall is shown up there at ES 4631. All right, let's take a look at NASDAQ. So for NASDAQ, the NDX call wall is 16,500. So that's above right now. NDX is trading at about 15,794. And there is about a 130 point difference between NQ and NDX. So NQ minus NDX is about 130 points. And so the NDX call wall shifted up from 15,200 to 16,500. And much more significant for the NASDAQ is the QQQ call wall at 385. So right now the SP500 and NASDAQ are both trading below the NDX and ETF call walls. And just below for both. And NASDAQ trading just below the QQQ 385 call wall and ES trading just below the SPI 455 call wall. Right, let's take a closer look at NASDAQ. So the move lower continues to be fueled by cell stop orders, aggressive sellers that show them by the yellow line, these cell stop orders. And the blue line, dark blue line, is showing cumulative volume delta falling. Let's see what options traders are doing. All right, so we see for the SP500, the trend continues to be higher, move higher. Traders continue to buy calls. They stop for a moment now they're buying calls again as price has dropped down. Let's take a look at NASDAQ. And now there's more of a clear read as traders just, I guess right after the Apple announcement, the Microsoft move lower, traders started taking negative delta positions and price continues lower. So for NASDAQ they are buying calls and buying puts. So the blue line continues steadily down. Now looks like it may be leveling off and traders are, it looks like they may be starting to sell calls. We can zoom in on this just a little bit. Go back to the total signal. So now the options traders at least for the moment, it looks like that has hero has leveled off. All right, my time is up. The interesting trades for the day were Apple and Microsoft, I thought, and those trades helping to drive the both the SB500 and NASDAQ. Otherwise, a pretty choppy day, a lot different from yesterday with that steady mechanical uptrend as traders continue to buy SB500 calls all day long. All right, my time is up. I need to clean up my charts here and think or swim. I want to thank everybody for watching. Thank you for your questions and comments. And I will see you tomorrow. Thanks again. Bye.