 All right welcome everyone welcome to options with Doug streaming live daily on Bookmap discord and on the book map YouTube channel at 1 30 p.m. Eastern time Before I go any further. Let me go through the disclosures General disclosure all book map 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 and as a reminder Options with Doug is very focused and bookmap Discord, this is a very focused channel and the focus 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 other traders Most likely use technical analysis or maybe even fundamental fundamental analysis I use positional analysis and that is looking at how traders and market makers are positioned in the options market and Then how those positions shift from day to day and that helps me to develop a thesis for the day Regarding volatility that the expected trading range as well as a directional bias That's the first step and that happens before the market opens and then after the market opens the execution I I look at real-time order flow and book map and Market maker hedging flow and spot gamma hero on topic questions and comments are welcome and both Bookmap discord and in YouTube. I tend to watch book map discord more and For those of you who on YouTube Who are not book map? Discord members. I encourage you to join. I I post things I post setups in my watch list and the book map discord chat room every day So again on topic questions and comments are welcome. All right now let's Talk about the news just a little bit So I think today is probably the calm before the storm and as everybody should be aware There is quite a bit of very important economic economic data coming out later this week the first is the CPI report tomorrow and That's at 8 30 a.m. 8 30 a.m. Eastern time and the next big event is the FOMC Announcement and press conference at 2 p.m. And 2 30 p.m. Eastern time on Wednesday And then I don't know how important this will be but retail sales Are reported on Thursday at 8 30 a.m. And then finally on Friday that is the Monthly and quarterly December options expiration and that should be a that is Typically the biggest expiration of the year so that is you know that a lot of important data and then the Important options expiration coming up on Friday So last week I talked about shifting my My agenda for this Webinar a little bit last week and shifting more towards stocks and I thought about that more this week and I'm going to Really focus on setups what were the key setups this morning? So somewhat of a review and then also talk about potential setups for the afternoon session now before that I do want to take a quick look at the the overall market just to get a kind of a framework of where the broad market stands and This is something that and so this is our positional analysis And this is something that I do every day and I normally just write this in a trading journal I write these this information down and a notebook every day so I can flip back To see what these levels were at any day this year and my trading journal and Today I've shown these levels in a spreadsheet. So what I'm talking about is the key Key gamma levels and are there key metrics that are shown in the spot gamma am founders note And again, this is what I'm writing down in my notebook every day And just as to illustrate what I'm doing and just as an example. I wrote it down in this spreadsheet every day Today, I'm not going to do this every day I just want to show an example of what I'm looking at and this gives me a quick overview of the key gamma levels in SPX spy NDX and QQQ and How those levels are shifting and then also other key metrics? especially gamma notional and Then finally support and resistance levels So I'm past weeks. I've gone over This data in a lot of detail and I I think everybody Who has been watching me should understand where this information comes from and and How important it is so just a couple things to point out here and again, I'm not going to do this every day I will I'll talk about this, but I'm not going to provide this This spreadsheet every day. This is important Information from spot gamma So the things to note here and the red numbers indicate that this whatever I'm showing in the spreadsheet Decreased from the previous day and green numbers increased So first of all for SPX the volatility trigger and the put wall Both drop from the previous day and This this is the call wall and for spy it increased from the previous day and the key gamma strike for QQQ decreased so the Vol the volatility trigger is spot gammas gamma flip level and this When price is trading below the volatility trigger, that's an indication that Traders are long puts market makers are short puts and they have to sell futures or the underlying to hedge their delta exposure and the put wall is the level with the largest net Negative gamma position and it often acts as support the call wall is just the opposite It's the level with the heart highest net positive gamma and can often act as a resistance and then the key gamma strike is the level with the highest absolute gamma and I think the the most important thing here to take note of is the drop in gamma notional and this Is showing that the SPX spy and QQQ Are all in a the negative part of the gamma curve So again, that means that market makers are Short puts and they need to hedge in the direction of price action to hedge their delta exposure Okay One thing that I want to take a look at is Let's go to SPX here, so this is Think or swim showing an options chain for SPX and remember that SPX has options that expire every day and The thing that I want to point out is the Expected move or implied volatility Up to the December expiration and that's over here on the right and This is an indication of you know strong indication that important data is coming out and The implied volatility is much higher on those days So this is today. This is the zero DTE options this 25.75 percent and then notice tomorrow the Volatility is up over 50 percent and then this is for Wednesday Thursday and then Friday let's see let me open up Just to make sure I've got the right dates there. Yeah, so the And notice on Friday. They're actually two expirations for SPX. There's the a.m. Settlement and the p.m. Settlement So this option structure is Backwardation this means that the the Front expiration Implied volatility is higher than the implied volatility further out in time and that is not not normal You know it is normal expect given the data that's coming up, but Or you know that's going to be reported this week, but normally implied volatility increases further out in time because there's more Uncertainty as as time increases So something to keep in mind is that puts for this week or are very expensive and Unless this data comes out Or powell comes out the data comes out much worse than expected CPI is much higher or powell comes out more hawkish than expected and Let's say increases The Fed funds rate by 75 basis points instead of 50 then you know If that doesn't happen then implied volatility could drop quickly and that could Could help support a rally so just something to keep in mind the The height you know the very heightened implied volatility for this week Okay, so that is my positional analysis. That's what I You know, that's what I look at every day and now let's let's shift gears and take a look at some setups so And this is this is going to be review so the first thing that I want to do is take a look at a setup from last Friday and This is just to This is really for educational purposes only to show how the The information that I look at can be used to develop a thesis and then Execute a trade plan so plan and execute a trade and this is a Great example from from last Friday So this again, this is from last Friday and this is what I was looking at and I've talked about this This is a spreadsheet that I do Keep every day and I I post it every day or I talk about it in my webinar So I have a watch list of stocks and these are mostly mostly large cap Tech stocks with a few smaller cap higher beta stocks thrown in as well as the QQQ and spy So I mark the So I have two columns here the current gamma strike and the previous key gamma strike and I mark The I colored code the levels Red indicates that that key gamma stripe Dropped from the previous day and green indicates that it increased So here's an example and here's the one that I'm going to talk about is Nvidia So this is just a starting point and this is done Before the market opens. This is part of my Planning and preparation so I notice that there are several stocks here that Showed an increase in the current key gamma strike and that is typically a bullish signal So that is the the first clue here then the next So the next thing That that I think about so I I recognize that Nvidia The key gamma strike rose so I think about the day before so this is from Thursday and There was a great setup and Nvidia on Thursday this divergence is the orange line shows that Traders were buying calls from the open Price dropped a bit and then started going up as traders continued to to buy calls and This is a very powerful force that can drive stocks much higher, so The way this works is when traders buy calls Market makers sell the calls and they have to Buy stock to hedge their delta exposure so I recall this from Thursday that traders were buying calls and Nvidia rallied and this is again. This is from Thursday showing the rally and Nvidia and The important thing to note here Let me just bump this up a little bit is the reversal at the 160 key gamma strike that shown here So that's another clue For this for this setup on Thursday and the target is the 170 call wall Which will become the key gamma strike on Friday so I've I've seen that the key gamma strike for Nvidia rose to 170 and The I remember the previous day the rally in Nvidia as traders were buying calls so so far everything is looking good for a A bullish setup, so I decide to investigate further and this is from Friday 1209 and this is the equity hub five-day history and it's showing the these five key daily levels and I look at all these when I'm Investigating or you know trying to develop a thesis so what I notice is So here's the key gamma strike and that's what I'm looking at at my spreadsheet and The next thing is the hedge wall Increased and also the call wall and And Just as a note Yeah, Bert. That's that's kind of unusual the And that we can look at spot gamma for ES and spy in and just a moment and see or later on we'll see how How traders are positioning? So the hedge wall is a it's a proprietary spot gamma level where the largest change in gamma is detected and this indicates where options dealers risk exposure changes and remember I've talked about this before the the spot gamma model assumption is different for stocks than it is for for indices so for stocks spot gamma always assumes that traders are long puts and long calls and market makers are Short puts and short calls So the hedge wall is similar to the volat volatility trigger, but there is no gamma flip level Spot gamma is assuming that for stocks that market makers position is always negative gamma All right, so this is the the next piece of the puzzle and my You know in this case building building a bullish thesis so the next thing There are Several charts in the Spot gamma equity hub and I'm going to go through three of them So this is the composite view and this px shows the current price level This would be from the day before at the close and What this indicates the the orange just red color indicates that Puts are dominating at this current price level and also the This chart is showing the rate of change of gamma and assume that Volatility is the highest at the At the highest rate of gamma change so this is essentially showing volatility so at this current level this is showing the The highest level of volatility in this you know the the chart in the entire chart the range from 130 to 210 and then this is the put call impact chart and It's showing similar and information to the composite view chart It's showing that there is a high rate of change of gamma between around 150 to 200 and Above this level and I that was shown as 180 on this chart so put dominated in the red area call dominated in the green area and This is showing that that same shift right here at about 180 So slight put dominance Below that level and call dominance above Now this is something new that I haven't talked about before and I think it provides some interesting information and it's a little bit difficult to interpret and The information that I saw on the Support center for spot gamma for this chart kind of differs a little bit from from what Brent talked about at boot camp The past not this past weekend, but the weekend before so here's what here's how I interpret this and this is showing Implied volatility on the left scale here on the on this left axis the vertical axis and it's showing skew on The right so what this is showing this d50 means Delta of 50 so that's the at the money at the money options this line right here and Then this is showing the the options skew for options below Delta 50 and that is Spot gamma is using Skew or implied volatility for calls To the right of this line and puts below So let me just show you I'm gonna go to let's go to equity hub here for Let's go to spy and go to skew So this shows A typical skew for the indices as spx spy puts are always valued higher than than calls in the S&P 500 spx and spy and that that has been the case ever since the 1987 Market crash is there is higher this shows demand for puts and Again for the S&P 500 the there's always a higher demand so a higher implied volatility for puts and calls So that is That is typical for the again for the indices S&P 500 Let's go back So this is for Nvidia here and this is showing Now my understanding is the solid lines indicate the skew for options around with around 30 days to Exploration and then the dashed lines are the next expiration So in the case of Nvidia that would be for So this is information from the close on Thursday for Friday and Then so the green line here is showing the current information and the blue dashed line is showing the information for the previous day so Bottom line what this is showing is in the short term. There's demand for calls So implied volatility increases and that is indicating a heightened demand for calls so that's another indication That you know there for a bullish thesis in Nvidia And hold on just a second. Let me check and see if they're and Anthony and you do a YouTube Anthony ask is there a way we can access this data and yes, you have to subscribe to Subscribe to spot gamma And that all this information is available and I'm just showing how to use this information as well as what I see in book map to Plan and execute a trade. So here I'm I'm building my thesis. This is what I'm doing in my planning step and So again just to summarize I did a You know one of the first things I do in the morning is go through my Watchlist and equity hub and I note the changes in the key gamma strike and I marked that in this in the spreadsheet that I showed and Given all that I know about in video What it did the prior day what I see here today it it makes me interested in Doing further investigation. So this was the first step go to this Five-day history in equity hub and I see the rising key gamma strike hedge wall and call wall I noticed that the volatility is highest at the current level and There's slight put domination Below the 180 level call domination above and there's higher demand for calls or heightened demand for calls that Is normally does not occur in in spy and SPX and has been somewhat Lacking this year or unusual All right, so that is the that is the planning and preparation and my thesis for the day for NVIDIA is first of all for higher volatility Because of that composite view chart and then for a Bullish directional bias, you know based on the rising Key gamma levels and also the the call demand shown with that skew chart So now the next step is After the open and I sort my Spot gamma hero watch list Typically either by the strongest or the weakest hero signal Kind of based on my outlook and and what I what I see in this list in the first few minutes so I and this hero signal this is what I'm What I'm looking at shows that The hero signal shown by this dot here is the highest There it has been in the last 30 days and that's shown by the the kind of the light Light gray Sliding scale here and then this colored area would be in the last five days So this is a very strong signal highest that it's been in the last 30 days and higher that it has been in the last five days And also NVIDIA is at the top of the list So that is another indication that I want to so again. This is after the open so now I'm in the execution step and I see NVIDIA at the top of the list and Then next this is NVIDIA for Friday And I see that traders are Continuing to buy calls just like they were the day before And that's shown by the rising orange line so at that point and now I did take this this is around noon, so You know, I would certainly Have been looking more For a long entry much earlier in the day somewhere You know, there are a couple of good entries You know looks like the best is around 950 here unless you like to trade the open so now Let's go to book map and there's the There's the entry just after the open and Then that next long entry long set up Around 950 or so and there are a couple more Entry points here And then the target is the 175 call wall here and all the high liquidity there so that's a very very clear target and this was a little bit choppier than Thursday, but still a nice bullish setup and confirmed by the rising CVD and Let's see if I have any other So this is this is hero for the entire day So it looked like that That rise up to 175 around noon was kind of the peak of the day and then it looks like Traders started to take profits from the last couple days and this is Again for Friday spot gamma hero for the entire day and that that's confirmed with this book map chart for the entire day So the point of this is showing an entire process for planning and execution showing how in this case everything just aligned so well and It's not always this easy this obvious, but this was a Great setup on Friday. So I wanted to talk about that in more detail All right, so let's look at today now and I want to talk about a couple of setups in Netflix and Tesla and those were the best setups that I saw today And let's take a look now at So this is this is the equity hub or spot gamma equity hub and this is what I look at every day and this is where the That key gamma strike comes from so this really This just takes a couple of minutes in the morning to open up my spreadsheet and then take a look at this and write the numbers down shift the column over write the numbers down and So this is what I'm looking at. So again the best setups that I saw today were Netflix and Tesla so let's look at Netflix first All right, this is for today And here and there was better alignment with What I saw here in Netflix than Tesla But both were good setups. So first of all in Netflix. I see the key gamma stripe dropped from 310 to 300 Okay so I'm interested in in Netflix and video qqq for shorts and Actually would first consider a long in Tesla and it Tesla did not work out that way right Next step. So I'm interested in Netflix and I'm kind of illustrating You know again the best setup that I saw this morning So Netflix let's go back to equity hub take a look at Netflix and do further investigation And I see that the key gamma strike dropped From 310 to 300 and the call wall actually increased Next step I look at this composite view chart and not not a lot here. I see that Netflix is still Put dominated below 340 put call impact chart the same thing Skiu this provides a little bit more information showing there's not really any demand for calls and demand for calls is what can What can really drive a price higher? So the both the 30-day and the short term Lines are not showing any any demand for calls All right, so now let's go to the Spot gamma hero watch list for today and this is This is what I posted this morning and and sorry for the mistake For those of you not in bookmap discord I actually posted the wrong screenshot, but this is what I I corrected that and posted so This is show this was taken about 9 50 a.m. So showing all of these Stocks, yeah, I guess really down to Microsoft here with weak hero signals Tesla at the top of the list So that is definitely a A check in the bullish or the bearish List all right, so Netflix the one we're talking about is also has a very weak hero signal So that is the the next step in the process after the market opens and So the next step after that is to take a look at Take a look at hero and then we'll take a look at bookmap. All right, so there's Netflix there's the total signal and We can see that traders are definitely taking negative delta positions and they're buying puts and that is similar to When traders By calls Market makers have to buy stock to hedge their delta exposure and when traders buy puts market makers have to sell Stock to hedge their delta exposure and you can see that they were We can zoom in a bit and they were buying puts from the open and Then finally we can go to bookmap Look at Netflix So the first thing to notice here is the Is the 310 put wall and see the liquidity there So that is a that's your target And it looks like Once Netflix Reach that target. It's just really been chopping around that that area ever since and you can see the You know it seems at least for now that traders have found Fair value there Oh, it was between 309 and 311 But there were a lot of nice pullback entries up to that Up to that point and we can we can zoom in on this a little bit So there was the setup Netflix quickly makes a series of lower highs Then breaks below that 320 level and then drops pretty quickly after that and then there There were quite a few pullback entries on the way down to the 310 put wall Okay, let me check for questions in YouTube here no questions and any questions in Bookmap discord, I don't see any so this was a great setup this morning Not as clean and clear as the Nvidia setup that I went over But what I thought were the one of the two best setups this morning, all right next let's go over Tesla So let's go back to well first of all the the watch list and Again ranked my weakest signal the strongest signal and here I see that Tesla is at the top of the list the weakest signal and Tesla's definitely been weak For quite a while. So weakest signal the last 30 days and weaker than it has been the last five days so actually I should have started with Should have started with This let's get rid of that go back to total signal go back. So here I Was not not really looking for a Bearish setup and Nvidia so this is the starting point here. I'm looking at this and let's look at the Go to equity hub now Look at Tesla So this is showing That an increase in the key gamma strike an increase in the hedge wall And increase in the call wall so so far my thesis is bullish So now let's look at Some of these charts in equity hub put dominated pretty much throughout the the price range Confirmed by this chart and skew this chart shows that there was demand for calls by this Upward curve at Below delta 50 so increased implied volatility for calls But now that is the that was the prior day and then this is the the latest information showing that demand Was for calls last Last Friday, but there's no no current demand for calls so so far a bullish thesis in and Tesla and Now now let's go to the watch list and see that Tesla is the top of this You know the top of this chart ranked by weakest to strongest signal So there's a check against the The bullish thesis And now let's take a look at the hero signal for Tesla and it's definitely Definitely negative Delta traders are Buying puts and selling calls, but it looks like primarily put buyers are driving price action here All right, let's go take a look at book map now And again, we have a very clear target below I'm going to zoom in and notice that price is falling before the open very clear target at the 170 put wall and both hedging flow and Order flows showing here in book map do not confirm the bullish thesis So I would be you know seeing this price below VWAP falling falling CVD. Yeah, I definitely looking for Barrage entries here and there's the the clear target at the 170 put wall and also noticed The high liquidity at that level So just looking at order flow You know, this is this is pretty clear that price is making a series of lower highs and lower lows And there's a you know, very clear target at the 170 Put wall and Also the high liquidity at that level Okay So those were the two best setups that I saw this morning in the the stocks that I follow So let's take a look now at the current market was first of all, does anybody Have a stock that they want me to take a look at okay, there's a question about in In YouTube about China stocks and I typically do not Do not trade China stocks You know, it's just me there You know just something I don't trade so We can take a quick look let's go Here to I'm gonna turn on So instead of looking just at my watch list I'm going to take a look at all the stocks available and spot gamma hero and that is 190 stocks And I'm going to take a look and just rank this from Strongest signal first and I don't see any China Chinese stocks here in this list And here Tesla is the top of the list for the whole entire Hero watch list Okay, and Mike I I talked about Nvidia and Tesla and this is recorded so you can can you can watch later and We'll take a look actually I talked about Tesla. I talked about Nvidia a Previous setup and it looks like even though this is a weak signal that traders are Taking positive Delta positions and they're selling puts and buying calls So that's Nvidia question about DocuSign, I don't have that open in and book map and I only have a few minutes late So I don't have time to take a look at that but we can take a look at it in And spot gamma hero and it looks like Definitely bullish today strong confirmation with spot gamma hero and Price action And it's called so this is a very powerful powerful signal traders are buying calls and In docuSign and again when this happens market makers have to They sell the calls they have to buy stock to hedge their delta exposure and we'll go down the list here PDD I'm not familiar with that and it's not in the list of Of spot gamma stocks hero stocks Here's XLF and it looks like traders were taking Positive Delta positions up until around 12 when when XLF reached this level or Just under 35 and then there were a couple of large or large block trades coming in both Buying puts and selling calls and then that has leveled off since then. Okay, let's look at ES I'm gonna go back to my watch list and look at ES and Here traders are buying puts So let's let's take a look at VIX and that makes sense VIX is rising traders are buying puts So VIX is up pretty substantially today and let's take a look at book map now Okay, so ES has risen from the the support level at the volatility trigger Right there found support at the that would be the SPX 3960 and that was one of the support levels that I showed in that spreadsheet this morning So early early in the morning just after the open that level acted as support and then ES has trended higher ever since then and this is the 396 this is the spy 396 volatility trigger that has been acting as resistance and also the SPX zero gamma level Right around here, so there's ES. Let's just clear this and here's the This is one of the better setups that I saw this afternoon and Tesla and Tesla just continued to to trend down and broke this upward trend line after the absorption here at the 170 put wall that high liquidity level and then That liquidity was finally consumed and price continued on down So here is the setup right here just after 1 p.m. Eastern time The break of the trend line you can see all the all the pink dots coming in there and The continuation of the downtrend So there's the best setup that I saw this afternoon So, you know, it's a thesis is one thing But you know like I've shown here in Tesla it always it doesn't always work out, you know, that's why you have to watch price action and confirm that with Market-maker hedging flow and in hero after the open and that you know the keys here were the Tesla was at the top of the list of the weakest with the weakest hero signal in my watch list and Traders were we're buying puts and selling calls and the you know the nice Price target with all that liquidity at the 170 level below Any any final questions my time is about up I hope you found this helpful You ought to appreciate any feedback again, this is kind of the format that I plan on going forward is Trying to cover the best best setups that I see and Hopefully maybe in the In the future having more time for for current setups, but there were Three good setups that I wanted to go over the first was Nvidia from last Friday and then Netflix and Tesla from this morning so thank you very much for attending and Thanks for your questions and comments and I will see you tomorrow. Thanks again. Bye