 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. Risk 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 and 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 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 SpotGamma Hero to confirm my thesis and for setups for entries and exits. And just to be clear, I will be talking about setups today. And setups can be taken any number of ways. I will be talking about a setup and an underlying asset, and again they can be taken any number of ways with shares, futures contracts, or options contracts. And questions and comments are welcome. And I will be watching the Options-Doug chat channel and Discord and the chat in YouTube for your questions and comments. And second wins in YouTube says hi Doug, hello. Is there a way you can turn up your microphone? And sorry, I don't know what the issue is with YouTube. There's never a problem in Discord. And I have the gain on my microphone turned up to max. So if you're having trouble in YouTube, I invite you to join us in Discord and Bookmap Discord. It's free for all whether you subscribe to Bookmap or not. And there's often interesting discussion going on all the time, a variety of channels in Bookmap Discord. So again, I invite you to join us there. I haven't heard any complaints about audio. My agenda for today, I'm going to go over news items. Actually not. There are no news today. And as far as I know, no news for the rest of the week. Then I'll go through my positional analysis. And then I'll review a couple of setups from this morning. Futures and stocks. And then we'll go and watch the live market. All right, let's get started. Start with positional analysis. Let's take a look at Bookmap. This is the S&P 500 Futures. ES Futures and Bookmap. And before I dig into this chart, I'm going to take a look at a larger time frame. This is the SPX in a 30-day one-hour chart showing price and key levels. Let me point out some levels here. First of all, here's the lower and upper edge, the expected move for the week, shown with the dashed purple lines. And so far, it looks like for the week that there is SPX is trading right in the middle of that range. And then the dashed blue lines are showing the lower and upper edge of the expected move for the day. And again, SPX is trading just about in the middle of that range. And there are also some key gamma levels on this chart. First of all, the put wall. That's at 4,000. That's the strike with the largest net negative gamma that can be expected to act as support. And that is certainly not in play today. And then the next level is the 4195 volatility trigger. And that is an important level, 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. And then on the other hand, like SPX is trading now above that level, market makers position on the gamma curve is positive. In a positive gamma environment, they have to trade against price to hedge their delta exposure. And that tends to subdue volatility and can lead to more range days like today. And the next level is the 4300 level. That's up here. And that is the call wall. That's the strike with the largest net positive gamma that can be expected to act as resistance. And that is also the absolute gamma strike, the strike with the largest absolute negative and positive recall input gamma. Right. So those are the primary daily levels as well as the daily and weekly expected range ranges. Let's take a look at one other chart. This is SPX, again, in a one day, one minute chart. And the point here is just to show a closer look at SPX and the levels that are in play. And here's the, here are the levels up above the call wall. Absolute gamma strike at 4300. And then this L one level, large gamma one, that's an important level at 4299. And that did act as resistance yesterday. And the, again, SPX is trading just right in the middle of the range expected for the day. Let's take a look at book map. And book map, I have the SPX levels shown in my cloud notes as well as the spot gamma notes. And the again, here's the call wall at 4300 and the large combo one level at 4299. And then the SPI call wall is just above that at 430. And in my cloud notes here in this column, I'm showing key SPI levels that have been in play for today. And then the SPI call wall, here's the, so the SPI levels, the 426 did act as support this morning. And note, the SPI is trading just above the 427 volatility trigger. And this level has acted as support today once price moved up above. Right, so those are the levels that are in play. And again, in my cloud notes, I'm including the SPX levels as well as SPI levels. Let's talk about shifts in levels now. And there were some confusion in the spot gamma data this morning. So the, I think the only valid shift for the SAP 500 was the SPI volatility trigger shifted up one point from 426 to 427. The data was showing that the SPI put wall shifted up from 400 yesterday to 425. That may be the case, but the absolute gamma levels do not show that. All right, so that is the SAP 500 again, the only shift that so there were no shifts in the SPX. And no shifts, especially important in the call walls. The 4300 for SPX remains the call wall, the upper, upper limit. And then the 430 remains the call wall for SPI. All right, let's take a look at NASDAQ now. And let's take a look at QQQ levels. And this is showing that the NASDAQ also trading a narrow range today. QQQ trading between the 354 volatility trigger, which is a new level shifted up from 349 yesterday to 354 today. And then also this 355 combo L, L5 level. So price right now trading between those two levels in a narrow range. And as we'll see in just a few minutes, gamma notional is positive for SPX and also QQQ, leading to a thesis of it, a range day today. And that's what appears to be happening so far. All right, so here's SPX. And again, I have the same cloud notes here. And in my cloud notes, I'm showing QQQ levels. And there's the 354 volatility trigger, also QQQ, NQ round numbers, and then also NDX numbers. And there is the, assuming this number's right, there is the 14,480 football for NDX that did act as support today. And we'll talk about setups in a few minutes. So again, for NQ, a choppy range day as well. All right, let's take a look at, take a look at the Vana model. And this will give us more clue as to how market makers are positioned. So this is SPX, the Vana model. And this is something that I look at closely every day. What this chart is showing is how market makers delta notional, shown on the vertical axis, changes with changes in price, shown on the horizontal axis. And that is shown by this light gray curve, showing how market makers delta notional changes with changes in price. And this is showing that as price increases, market makers will need to sell futures to hedge their delta exposure. And again, that tends to subdue volatility. And this is typical of a positive gamma environment. And then the second curve, the purple curve, adds implied volatility to the equation. So that's showing how market makers delta notional changes with changes in price and implied volatility. And that change in delta with a change in implied volatility is the Vana effect, hence the Vana model, the name, the Vana model. And what this is showing is that price increases, market makers will have less delta notional to hedge, slightly less, as predicted by the delta only curve. And then on the other hand, as price decreases, they will have much more delta to hedge as price decreases. And that's typical of a negative gamma environment. All right, let's take a look and see where SPX is trading right now. And give me just a moment. Take a look at a watch list. And I've got SPX at $4273. So let's locate that on this chart. So that is about near the bottom of this curve. So showing that if price increases, there's really not much of a tailwind, a Vana tailwind. And as price continues to increase, there will be a Vana headwind, $2273. And then as price decreases, market makers will have to hedge pretty aggressively to hedge their delta exposure. They'll have to sell futures to hedge their delta exposure. So this is how market makers were positioned on the gamma curve at the beginning of the day. And this is showing how they're going to be expected to react with changes in price. And let's take a look at some data now. Let me just refresh this to make sure this is correct. All right, what I'm looking at here is gamma notional for SPX spy NDX and QQQ. And this is showing that gamma notional for SPX is quite positive 916 million. And for spy it's slightly negative. And that was a pretty substantial shift lower from yesterday. So yesterday, gamma notional for spy was positive 563 million. And now it shifted to minus 92 million. So a pretty significant shift lower to negative for spy. And then for QQQ, it is still positive. All right, so that's how market makers were positioned on the gamma curve at the beginning of the day. And when we looked at the QQQ chart, we saw that QQQ was trading slightly above the volatility trigger. And then spy is close to its volatility trigger as well. All right, so based on this, my thesis for the day was looking for lower volatility and a trading range. Definitely not a trending market. All right, so let's take a look at some setups now. We'll start with the S&P 500. So here the S&P 500 is trading just at the 427 spy 427 volatility. trigger. All right, let's take a look at a hero. What this is, this chart is showing, this is spot gamma hero, HIRO, hedging impact real time options. And this is showing price with a white line for SPX and options trades and market maker hedging flow or hedging pressure for a combined signal for SPX, spy, XSP, and ES futures. And so far today this number is positive. The notional value is positive 678 million, meaning that's delta notional net for the day. Traders are taking positive delta positions in SPX, spy, and ES futures. Let's take a look at the individual components. First of all, SPX, and now that is slightly negative. Spy, that's positive. Traders have been taking positive delta positions throughout the course of the day. And then for ES futures, that's negative. So net net, the total signal is shown here. Let's zoom in on this chart. All right, second wins ask what happens at the volatility trigger? All right, so the volatility trigger is for index products like the S&P 500 and NASDAQ, the SPX, spy, NDX, QQQ, RUT, IWM all have a volatility trigger. What spot gamma assumes is that for these products traders are long puts and short calls. Market makers take the opposite side of the trade and they are short puts and long calls. So when the short put area of the gamma curve below the volatility trigger, their position on the gamma curve is negative. Negative gamma in negative gamma environment, they have to trade with price to hedge their delta exposure. And then above that level in the call region, their gamma is positive. That's above the volatility trigger. In a positive gamma environment, they have to trade against price to hedge their delta exposure. So the volatility triggers for index indices like the S&P 500, NASDAQ and Russell 2000 and that's the gamma flip level from negative below to positive above. All right, so let's take a look now at, again this is the combined signal for the S&P 500 and we're going to do a setup review. So here I'm going to zoom in on the morning session and there's a very strong correlation between hero and price action. So options traders were having a strong, it appears to me that options traders were having a very strong influence on price action. Hero rising and price rising. Let's go take a look at ES futures now. So this was the setup from the morning confirmed by hero and so we'll take a look at order flow now. So second wins asked, so if the price is under the volatility trigger then downside momentum is likely to happen. It certainly could, yes. We looked at the Vana model for SPX and as price starts to move lower and implied volatility increases, price moves under that volatility trigger then price can accelerate to the downside. On the other hand, it can work both ways. If price is rising and implied volatility is decreasing, market makers delta notional is decreasing and they can buy back their short hedges. So I think the way spot gamma looks at it is they assign a little bit of a bearish edge for price below volatility trigger and a bullish edge for price above. Alright, so we're taking a look at the SP500 right now and so we know from looking at hero that traders were taking positive delta positions and I'm going to review the long setup from this morning. Very clear setup, a check of the 426 level and note the shift in order flow. All these green volume dots, aggressive buyers coming in shown by this rising dark blue line that's cumulative volume delta that steadily increased from 426 all the way to 428 and also this rising yellow line, buy stop orders helping to fuel the move higher and these are shown with these small green dots, buy stop orders. So aggressive buyers, options traders and buy stop orders all fueled the move higher. So that was the long setup from this morning. Very clear in hedging flow and order flow. Alright, let's take a look at NASDAQ now. There's NASDAQ in book map and let's go to take a look at hero and see what options traders were doing in NASDAQ and just like the SP500 this is also a combined signal here for NDX and QQQ. I'm going to zoom in on the morning and this was actually a divergent setup this morning. So the NASDAQ, notice the price drop quickly shown by the white line and just after a couple of minutes after the open, options traders started taking positive delta positions and that led to a reversal or helped contribute to a reversal right there and let's go take a look at that in book map and there it is. I'm going to zoom in. So here's the reversal at the QQQ 353 level as well as the could be the NDX 14,480 put wall level if that is the put wall. Again, there was some confusion with the data this morning. So anyway, just reading this in order flow bit here. So the clues in order flow, first of all, notice the iceberg orders here, iceberg orders as price moves down that's shown by this rising light blue line, two orders for 155 contracts executed and then here right at this reversal level it looks like 481 contracts executed in 14 transactions. One thing I like to look for is this gap here. Iceberg orders executing, we know that options traders are taking positive delta positions and then order flow shifts, a lot of aggressor buyers start to come in, you can tell by the green volume dots and then CVD starts rising as well as the yellow line showing buy stop orders fueling the move higher. So the move higher confirmed by options traders with hero and order flow and book map and price targets at the 354 and 355 level. So nice long setups in the SMB 500 and NASDAQ. Let's take a look at a couple of stocks and then we'll go to the live market. First was AMD. Let's take a look at hero and we'll see the call buyers were active. There's AMD and I've separated output and call transactions. The orange line is showing that traders are buying calls, market makers sell the calls and they have to buy stock to hedge their delta exposure and that can cause a stock to move a lot higher and notice how price levels off when traders stop buying calls. So that's AMD. Let's go back to book map and that led to a sharp rally this morning with a price target up to 125. Note all the liquidity at that level. That is the call wall, yes. So that is the call wall for AMD and that would be the target if price had continued or continues higher this afternoon. If traders start buying calls again then price could go up to that level. So that's AMD. Let's take a look at Google and note that Google was trading below the 126 put wall this morning. I think there was an alert. Here it is. Google put wall breached at 4.10 a.m. So early this morning, pretty much soon after the trading session for stocks began, the pre-market trading. But now Google, let's go take a look at book map and we'll just see that traders are buying calls in Google as well. Let's go take a look at book map. We'll take a look at Google. So remember 126 is the put wall. I don't have it shown on this chart but that was shown on the hero chart. And price made a series of higher highs and then found support at the VWAP and 126 put wall before moving higher. So that 126 level did act as support as expected. So that's Google and let's take a look at Meta now. And I'm just showing a few setups from this morning just to highlight and we'll take a look at the live market in just a moment. So here's Meta. Strong rally in the first hour this morning. Take a look at hero. And again, call buyers, driving price action. Traders are buying calls shown by the positive delta notional there. They're also selling puts but more aggressively buying calls. So both numbers are positive. And second wins ask, can you look at Boeing and Spotgamma? Yes, we will. I don't have it in book map. So we'll take a look at Spotgamma and just a moment. So there's Meta. Again, strong rally this morning as traders were buying calls and selling puts. And note the 280 call wall up above. And looks like their price would have to go about five points higher to get up there. So that really does not look like a feasible target today. Let's go back to book map. So there's Meta. 280 call wall well above. Now price is rolling over and the discord Bob Lee asks what type of chat is that? And I don't understand your question. I'm sorry. All right, so let's take a look at let's go back to hero. And we'll take a look at Boeing. And it looks like there was news. So I don't that there was what a this appears that there was no lead effect from options trades. So this just appears that apparently some news came out. So a drop from the just around the 210 211 level down now to just above the put wall. So a 10 point drop and Boeing again must have been news. I'd really I don't follow Boeing, but that is a big drop. All right, those are the stocks that I want to highlight. If anybody else has any stocks, they want me to take a look at. Please let me know. Otherwise, we'll go to the live market here. So this is the SB 500 first. Let's go take a look at book map and a book map. Now the SB 500 is trading below the 427 volatility trader. And remember the spy was already negative gamma, slightly negative gamma to begin at the beginning of the day. Order flow also looks somewhat bearish here CVD sloping down sell stop orders helping to fuel the move lower. It looks like some iceberg orders. Large traders are coming in with iceberg buy orders shown right here also by the rising light blue line. Let's see what options traders are doing. So this is a one day rolling windows. So this is cumulative data for the entire day. And it looks like I just like to look at the trend here and the trend of hero is down. And let's see if we can gain any insight by looking at the zero DTE traders and the number looks pretty small compared to the traders trading all expirations. Let's turn that off. And so we're going to look at all expirations. Let's change the rolling window period. So right now if we look at 30 minutes of data, like a 30 period moving average, it looks like options traders are now starting to fade this move. Taking positive delta positions. And it looks like price may be responding. And remember we saw in book map that larger traders were coming in with buy iceberg orders. So let's go take a look at book map. So hard to say if this is a this is just a pull back in a downtrend or reversal. So now some sell iceberg orders coming from a small about 100 contracts executed. CVD and stop orders still look bearish. Look at NASDAQ and the insight and pretty similar reversal higher at the QQQ 354 volatility trigger. Again, we're on a 30 minute rolling window period here. So it looks like options traders started taking positive delta positions just around 130 135. Right? So we know that traders are now taking positive delta positions in the S&P 500 and NASDAQ. One thing to point out is when I'm trading I don't have to I'm here I'm presenting on one screen. So I have to jump back and forth and it can be a little bit confusing. When I'm trading I have multiple screens so I can watch a hero and book map at the same time. So NASDAQ just back in right in the middle of that QQQ 354 to 355 range ES just above the SPI 427 volatility trigger and VWAP shown by this light blue line could be resistance. It acted as resistance before back to hero and see what options traders are doing. So continue to take positive delta positions for NASDAQ. Same for the S&P 500 and this type of environment. One thing that works pretty well is trading something like an iron condor with short strikes just around the lower and upper edge the expected move for the day and then wings further out whatever your risk tolerance is 5, 10 points you know whatever with SPX trading right in the middle of the daily expected range. Right? So now it looks like options traders starting to either take profits or slowing down price responding. Let's go back and take a look at book map.