 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 OptinStashDoug chat channel in Discord is options, order flow, the impact of options markets on stocks and futures, and the influence of market maker hedging flow on price action. I have a two-step process for trading and versus 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 the 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 SpotGamaHero to confirm my thesis and for setups. And when I talk about setups, I will be talking about an underlying asset like a stock or a future. Setups can be taken any number of ways with futures, shares of stock, or with options. And questions and comments are welcome and I will be watching the OptinStashDoug chat channel in Discord and the chat and YouTube for your questions and comments. And second wins, hello, glad you're here. Great to see you on a Friday afternoon. My agenda for today, what I want to talk about, news, economic data, and events, primarily for next week. And then I'll go through my positional analysis. I'll review a few setups from the morning and then I'll talk about the live market. So when we get to the live market, if anybody has any stocks that they want me to take a look at, I'll do that. But I'm planning on looking at the SAP 500 NASDAQ in a few stocks. All right, let's get started. So as far as news goes, there was nothing today. It's been an extremely light week for news, but then it kicks in to high gear next week. Some of the highlights are CPI, the FOMC meeting. So I think CPI is on Tuesday, FOMC meeting on Wednesday. I think PPI will be out also. And then, of course, June, Friday, June 16th is the large quarterly options expiration. So definitely an event packed week next week. All right, let's get started. And I'll go over that more on Monday. Go over all the events and economic data coming up next week on Monday. All right, let's get started. Start with positional analysis. And this is the SAP 500 futures. And before I take a closer look at this chart, this is Bookmap ES Futures. I'm going to take a look at a larger time frame. This is SPX in a 30-day one-hour chart. And I'm going to let's change the time frame here a little bit. I'm going to go to 20 days just so we can see the current market a little bit more clearly. So the range for SPX keeps, appears to be moving higher. So beginning last Friday, the range was about 42.50 to 43.00. And then now, SPX is trying to break out above that and to above 43.00. So let me point out some levels on this chart. First of all, the lower and upper edge, the expected move for the week shown with the dash purple line. So SPX is trading well below the upper weekly expected move and well above the lower weekly expected move. So somewhere just in the middle of that range. And then this is the lower and upper edge of the expected move for the day. And SPX did break above that level, but now is trading below that level. And there are also some key spot gamma levels on this chart. Let me point those out. First of all, the put wall for SPX remains at 4,000. That's the strike with the largest net negative gamma that can be expected to act as support. And the next level is the volatility trigger. And 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 need to trade with price to hedge their delta exposure. And that tends to enhance volatility. On the other hand, above that level, like SPX is trading now, market makers position on the gamma curve is positive. In a positive gamma environment, they need to trade against price to hedge their delta exposure. And that tends to subdue volatility. And then the next major level is the call wall at 4,300. And that is the strike with the largest net positive gamma. And that can be expected to act as resistance. And so far today, it's not doing that. So it's possible that the SPX call wall will roll up, but so far it has remained at 4,300 for quite a while. And spot gamma statistics show that price should trade lower after breaching that level. So those are the primary levels. And one thing to note is the spy call wall did roll higher up to 4,35. So a little bit of conflict there between the SPX 4,300 and the spy 4,35. All right, let's take a look at book map now. So this is SPX. Again, just SPX price and levels. And this is book map. And in book map, I've got two columns of notes with levels here. And this is the spot gamma cloud notes showing there a combo level combining SPX and spy into one combo level. And I have my own column of cloud notes here. So I have the same SPX levels. I'm using a slightly different ES to SPX difference. I think spot gamma is still using a seven point difference. This morning, I calculated it at two and a half. So I'm showing my 43 19 level down here. And I think it's trading around two and a half or three. This is ES minus SPX. So this is an SPX number converted to an equivalent ES number. And note I am trading the June contract. And I will most likely roll over on Monday. So on Monday, I should be trading the September contract. And those that difference between ES and SPX will expand significantly with the September contract. All right, I'm also showing key spy levels. And for example, here's the spy 429 volatility trigger. And that did act as support around 1212 noon eastern time to 1245. And now prices resolving higher. So that was the support level for today. And then here's the 4300 SPX 4300 call wall and prices trading above that level. And again, remember the spy call wall is up at 435 now. So as far as shifts and levels go for the SAP 500, there were none for the SPX. On the other hand, every major level, the key daily levels that I follow all shifted higher. So we see here, there's the spy volatility trigger at 429 up from 427. Yesterday, the put wall shifted up from 425 to 427. And the as I mentioned, the call wall shifted higher from 430 to 435. And the absolute gamma strike also shifted higher from 425 to 430. So very, very bullish for the S&P 500 for spy. When all levels shift higher like that. And we'll talk about setups in a few minutes. So that's the S&P 500. Those are the levels in play. Also, I forgot to look at a shorter time frame for SPX. So we'll do that now. So this is showing the levels, just the price and levels that are in play for today for SPX. And note that SPX is trading that has was trading above the upper daily expected move. And now it is back above the call wall. So that's the SPX one day, one minute showing the levels that are in play for today, primarily the call wall and the upper daily expected move. All right, so SPX is trying to ES, S&P 500 trying to move higher. We'll take a look at setups in a few minutes. Let's take a look at NASDAQ now. This is the NQ futures. Again, I'm on the June contract. Let's take a look at a QQQ chart and see the levels that are in play for today. So here the this 355 level and that was noted as the as resistance level for QQQ today in the SWAT gamma AM founders note. And it did act as support and resistance a couple of times. And now price is moving higher and it looks like the 353 level acted as support. So those are the levels that are in play for today for QQQ. Also on this chart I have again my cloud notes and I'm showing the QQQ levels as well as NDX and combo levels. So there is the 14,556 NDX QQQ combo level and then there's the put wall the 14,480 put wall. So shifts in levels for so shifts in levels for the NASDAQ for NDX the volatility trigger put wall and call wall all shifted higher and that's bullish. And then for QQQ the volatility trigger shifted higher to 351. Otherwise the levels did not change. So for QQQ the call wall remains at 360 and the absolute gamma strike remains at 350. Okay and YouTube Alex says hey Doug hey Alex I remember you said there was a JP Morgan call at 432. Could you show me exactly where you were able to see that again? Alright so that is the what Alex is referring to is the short strike of the JP Morgan collar that expires at the end of June and we'll we'll take a look at that and that can as price gets close to that level close to the end of the month then that level could act as a magnet and it often has been a magnet for price. So we can take a quick look at that. Let me go to SPX and the end of June calls don't need so many so here it is. This is the this may be hard to see that's the open interest at the 30th June 4320 strike. Open interest almost 56,000 so that is the JP Morgan SPX short call and as expiration approaches and if price approaches that level the gamma at that level will increase and that has that strike JP Morgan collar strike call strike has definitely acted as a magnet in the past so I'm looking at thinkorswim but you should be able to see this in any trading platform that has an options chain and let's go back while we're on this chart I just this is the heat map for the S&P 500 just showing what the stocks that are leading the rally today and it's the usual suspects mostly large cap tech and Tesla alright so NASDAQ trying to make it back up to the upper daily expected move right and I talked about shifts and levels for the NASDAQ and the levels that are in play right let's take a look at some other information that I use in my positional analysis first of all this is the Vana model and this will give us a sense of how market makers are positioned at the beginning of the day and how they can be expected to react with changes in price and implied volatility so what this chart is showing is market makers delta notional on the vertical axis and how that changes with price shown on the horizontal axis there are two curves on this chart the first the light gray curve is showing how market makers delta notional changes with changes in price only and what this is showing is as price increases market makers will need to sell futures to hedge their delta exposure and the other curve is adding implied volatility to the equation so this is showing how market makers delta notional is expected to change with changes in price and implied volatility and that change in delta with a change in applied volatility is the the Vana effect let's see where SPX is trading now give me just a moment to bring up a watch list and I was trying to get that on my other computer it's not responding let me check over here so I have SPX at 4306 306 so I'm a right at the bottom of the pink curve so this is showing that if price increases from here market makers will need to sell futures and if price decreases market makers will need to sell futures so the pink curve is really there are the purple curve is the one that we want to take a look at so market makers position on the on the gamma curve at least according to this is pretty much neutral now their gamma notional is actually quite positive at the beginning of the day and of course SPX is trading well above the volatility trigger so it's actually in a positive gamma market makers position is positive gamma for SPX let's take a look at one other Vana model here I'm going to take a look at QQQ so it's quite a bit different SPX gamma notional is quite positive and for SPX I mean for SPX is quite positive and for QQQ slightly negative this morning so this is the Vana model for QQQ quite a bit of difference here more of a negative gamma tilt let's see where QQQ is trading right now right around 355 so right around here so this is showing there's a slight tailwind if we look at the purple curve market makers delta notional will decrease slightly as price approaches 357 358 so market makers may be able to buy back a little bit of short futures so but on the other hand there's a pretty substantial headwind to price they will need to sell futures to hedge delta exposure if price drops and second wins ask will you be looking at Tesla today yeah we can look at Tesla I'm not sure how to pronounce your name muted muted sorry anyway says new student here great I'm glad you're here welcome be patient this may take some time to absorb but glad you're here welcome right let's take a look at the final thing that I look at in my planning and that is the gamma notional and as I mentioned gamma notional for SPX shown here is quite positive 943 million and also for spy also positive both of these numbers increase from yesterday and for spy gamma notional was negative and slightly negative yesterday and today it is positive not much change for NDX and then still slightly negative for QQQ and it was more negative yesterday so those numbers all moved higher either pot more positive or less negative than yesterday and Alex asks what's the best way to use the Vana model to know where to get in on a trade I would not use it as a any kind of entry signal entry trigger it's simply giving me a sense of how market makers are going to be hedging so I would use this more in a well certainly in a positive gamma environment like SPX I was my thesis for the day based on so it's helping me develop a thesis so it is in the first part I group it in the first part of my trading process the planning process so it is along with gamma notional I know that market makers position on the gamma curve is is positive and I expect them to be trading against price to hedge their doubt delta exposure and that leads me to look for a lower volatility range day with highs and lows not necessarily a trending day so that that's how I use that information the Vana model and gamma notional giving me a sense of how market makers are going to be trading with price so again based on the gamma notional positive gamma notional and Vana model I was looking for lower volatility and a range day today and then based on the shifts higher in the levels for spy in particular I was looking my thesis for the day was our directional bias was bullish so I'm using this information again in my planning process but not in my execution process all right so let's again so that's my thesis for the day lower volatility trading range with a bullish bias all right let's take a look at some setups now I'm going to start with the S&P 500 this is the spot gamma hero indicator what this is showing is price for SPX here and market maker hedging flow hedging pressure for the combined signal for the S&P 500 SPX spy XSP and ES so this is showing options trades for all those instruments and market maker hedging activity hedging flow into one combined signal for the S&P 500 and I will tell you that this for the index products the S&P 500 and NASDAQ this signal can be a little bit more difficult to interpret than for single stocks so we'll take a look at both so this is again the combined signal for the S&P 500 and I'm going to review a few setups from from this morning so before I do that I want to take a look at the individual components of this signal so this signal is just slightly positive now the combined signal at 72 million let's take a look at SPX and that's more positive I'm looking at this number on the the right side of the chart 432 million for spy slightly positive but has been trending down and then for ES futures negative and it's also been trending down so let's go back to the combined signal zoom in on this and this was a when you zoom out and take a look at a kind of a larger trend here and this is the best use for this is kind of confirming a short setup in the morning and the first thing there was a first thing in the morning options traders were taking positive delta positions and that stopped pretty quickly just maybe 10 15 minutes after the cash open and then they slowed down and then started to reverse some of that started to fade the move higher and that was a another indication another confirmation of a of a short setup at this trend break right here and then there was also a confirmation about 1240 for a long setup so let's take a look at the take a look at the the morning session back to bookmap go back to ES so here's the here's the morning session kind of a strong mechanical trend right up to the spy spy 432 level and then price starts to make a series of lower highs and remember options traders were starting to and stop buying and really started to fade the move right around the upper daily expected move so remember hero started to level off and shift slightly lower as price approached that upper daily expected move so there was a confirmation for the first 15 minutes of a long and then again options traders started fading this move again around 945 at the upper daily expected move and note here that in bookmap this blue line that's cumulative volume delta starts to shift lower so it actually here when it shifts from dark blue to pink shifts from positive to negative and pretty typical for the SMB 500 it makes multiple rotations test this SPX 43 19 level multiple times before finally moving lower alright so that's the the short setup this morning again my thesis for the day based on the rising levels for spy was bullish and that was played out pretty quickly in the morning up until about 1030 for the first hour and then you know of course I say I always confirm my thesis with order flow and hedging flow and and both were shifting down setting up this short and now what let's go back and take a look at hero again and then as I mentioned before around 1240 options traders started taking positive delta positions and price started moving higher looks like they may be fading that move again so when we go to the live market we'll take a closer look at this and maybe shift to a shorter rolling window period alright so I thought this is with the best setup this morning this reversal at the spy 432 level alright let's take a look at NASDAQ and for NASDAQ I thought hero was pretty difficult to read this morning this is a combined signal for NDX and QQQ it looks like it really didn't get in sync with price though until about 11 o'clock something like that and now options traders have been taking positive delta positions starting around noon and price responded about 40 minutes later and let's go take a look at book map to NASDAQ and for me personally I find order flow a little bit easier to read and NASDAQ note the the shifts in order flow are pretty clear you know it takes a while to resolve price did trade above the upper daily expected move for a while but then started to move lower note the all the aggressive sellers coming in here NASDAQ not as quite as rotational as as the S&P 500 and note the shift lower in the cumulative volume delta and that happened started happening before 10 iceberg orders large traders selling with iceberg orders and they were selling on the way up that's shown by this light blue line and then also sell stop orders start to fuel the move lower and again now for this move higher price reversing higher at the 353 level and also the NDX 14,480 alright so for the S&P 500 I thought hero was was a good confirmation of a short set up this morning not so much for the NASDAQ until this afternoon this reversal higher let's take a look at a few stocks and then we'll get to the live market right so the first stock that I want to take a look at is AMD and primarily in the morning session so let's go to AMD now assume in note that 125 is the call wall so this morning AMD traded above the call wall and this is I think hero is often provides a more relevant a cleaner signal for individual set our single stocks then than the index products so here in the morning just right at the open craters tripping all over themselves to buy calls and that led to price moving up they stop buying calls price drops make they make one more attempt to move higher and then price starts to move lower let's just zoom in on the morning session so this if you're looking to buy a stock this is what you want to look at when traders buy calls market make or sell the calls and they have to buy stock to hedge their delta exposure and that can drive a price much higher and off the chart trading ask on the bottom corners of the chart are those P&L from a trading bot I'm not sure not sure what you're talking about what which chart you're talking about alright so there's AMD call buyers helping to drive price above the call wall let's take a look at book map zoom in on the morning session and again here's the 125 call wall and note that it did take several attempts for price to break above that level did a retest to that level and VWAP and then started moving higher so a call wall breach for AMD and when that happens those calls go in the money and market makers delta notional will increase and they will have to buy more stock to edge their delta exposure and I'm sorry their delta notional will decrease and they will they since their short calls alright so that is AMD alright AMD the next one I want to take a look at is meta pretty similar price action strong move from the open let's take a look at so what what I meant for AMD when those calls go in the money market makers are short calls their delta notional becomes more negative and they have to buy stock to hedge their delta exposure alright so for meta same idea call buyers right from the open tripping over themselves to buy calls in meta show my this rising orange line driving price higher and this in the case of meta found support at the 262 put wall let's go back to book map straight shot up as traders traders were buying calls again support at the 262 put wall alright so RJ wants to see the total signal for meta let's go do that call buyers definitely in charge here so the total signal rising as traders by calls right the next one Microsoft and note this case in this case the 330 call wall appear did act as resistance let's take a look and see not quite as clean a signal but traders were definitely buying calls on the morning and note the the strong difference between the call and the put line so traders not doing much with puts but definitely buying calls again right out right after the open traders buying calls market makers selling the calls and they have to buy stock to hedge their delta exposure alright those are the three stocks that I want to take a look at wanted to take a look at and let's see second wins asked to take a look at Tesla we'll take a look at that Tesla has been very strong I think the last I heard on CMBC it had been up something like 10 days in a row so we'll take a look at Tesla see if traders are taking profits today and looks like somewhat of a choppy day today here in Tesla trading above the call wall at 240 let's go take a look at book map take a look at Tesla just check on Tesla still positive for the day it's so it gapped up substantially it's still up 5% for the day I don't know what it is up for the week right so a request to take a look at Nvidia there's Nvidia and I suspect call buyers were at it in the morning let's take a look not quite as clear a signal as AMD now there we go yeah so call buyers let's zoom in on on about the first hour and you can clearly see here that call buyers were helping to drive price higher and Nvidia provided some good pullback entry points and note again the rising orange line traders buying calls and the flat put line and at this point in the day about an hour into the cash open cash session rth session and call buyers were definitely winning positive 136 million versus minus 34 million so they were buying calls and buying puts uh but call buyers winning all right you're welcome second wins all right let's take a look at the S&P 500 now whoops so options traders starting to starting to take negative delta positions again let's let's take a closer look go to a shorter rolling window period so now I'm just looking at the last 30 minutes of data instead of the entire day so options traders have been since about uh 110 taking negative delta positions you know it looks like they may be turning it around so we'll see let's go take a look we'll take a look at nasdaq and then we'll take a look at book map nasdaq they're also taking negative delta positions let's just see so remember we're on a 30 minute rolling window period here so now they are buying puts and selling calls let's just see if that I'm looking at the zero dte trades let me just look at the total signal so pretty similar to all expiration so the zero dte trades are shown with the green line and the purple line is showing all expirations well let's go take a look at book map so we know that let's just do another check of the s&p 500 so it looks like they were taking negative delta positions and then that activity has leveled off let's go to book map go to the s&p 500 all right still trying to make it up to the upper daily expected move looks like some aggressive buyers coming in here you can see the green volume dots and the rising cumulative volume delta all right we'll take a quick look at nasdaq and then red panda wants to take a look at snowflake I don't have that in book map we can take a look at it in in hero so it looks like es is finding support at vwap take a look at nasdaq also moving higher but not not much confirmation from cumulative volume delta stop orders or icebergs right let's go take a look at snowflake for in hero again I don't have it in in book map so it looks like snowflake found resistance at the call wall they're at 175 let's just go to the one day period back to the one day so they were in the morning they were selling calls and buying puts pretty low volume here or very low notional value minus 5.3 million negative minus 5.3 million so certainly in the in the index products we're looking at hundreds of million in notional value or maybe even billions big difference there and even some of the more actively traded stocks let's take a look at nvidia for example 50 million microsoft that's pretty low 12 million apple 114 million so again I'll just in youtube I I'm sorry I don't know how to pronounce your name empty my first interaction with advanced trading system irresponsible amount of pure knowledge flooding in brain committed to learn more and more of this great I have some suggestions for you first of all book map and spot gamma both have great websites and youtube channels so take your time book map has a knowledge base great a great learning center and also discord both have discord channels I believe spot gamma discord is for subscribers only book map discord is free and available to everyone so there's a ton of information out there again I would start with the websites for book map and spot gamma and also the youtube channels and what I'm showing is more of the practical side of using book map and spot gamma for planning and trade execution let's go back to book map and yes slowly grinding back up to the upper daily expected move same for nasdaq looks like cumulative volume delta shifting starting to shift down a bit and bystop orders were fueling the move higher and now that may be shifting a little bit lower looking at the yellow line and then also larger traders are selling with iceberg orders and the biggest size here was 235 contracts 14 executions so here I would be looking for looking for short entries reversal entries let's just check hero again see what options traders are doing in nasdaq so hero is is trending lower as well and we're we're on the back on the one-day rolling window period and es may have found support one more time at vwap that shown by this blue line there I don't know nasdaq may be stuck at this 600 level I think that is pretty typical of nasdaq uh getting somewhat pinned at a large round number in q number and rotating up and down around it like it has for um over the last 45 minutes that no baby resolving lower we'll see anyway my time is up I want everybody uh thank you everybody for watching thanks for your questions and comments have a great weekend and remember next week is going to be in data and event packed week should be a welcome change after this slow week so thanks again have a great weekend and I will see you on Monday bye