 Thanks, JC. Hello, everyone. Welcome to options with Doug Streaming live daily on book map discord and the book map YouTube channel at 1 30 p.m. Eastern time And before I get started, I need to 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 the focus of my presentation and the focus of the options dash 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 and the first is planning and I use positional analysis and 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 of my process is Execution and I look at real-time order flow and book map and real-time market maker hedging flow and spot gamma hero to confirm my thesis and for setups for entries and exits and On topic questions or comments are welcome and I'll be watching the discord chat options Dash Doug chat channel and discord and the chat and YouTube For your questions and comments So hello JC. Hello, Rob glad you're here. Thanks for confirming the the audio and Rob says the audio is good and And YouTube as well. So I think we're we're good to go here again. I'm looking for your questions and comments All right, let's get started so what I want to cover today is first of all news events and economic data Coming out this week and then we'll go through our positional analysis and then finally we'll talk about some setups So if this wasn't going to be an interesting week enough with with the CPI and PPI data coming out and options expiration on Friday a crisis with Well, I don't know when to use the word crisis really but a situation with regional banks kind of came to the forefront at the end of last week Thursday and Friday and That appeared to be Kind of the primary driver for the the drops in the S&P 500 the last couple days last week So that is still ongoing You know the regulators have stepped in over the weekend and I'll you know, there's plenty of coverage on the news. So that's that's all I'll say about that So it just complicates the week even further. So the rest of the week Again, I mentioned the CPI data coming out and that's tomorrow and that's been a very important data point So CPI will be reported tomorrow at 8 30 a.m. Eastern time. So that's tomorrow Then on Wednesday the PPI data comes out Again at 8 30 a.m. Eastern time and then on Thursday, there's jobless claims and and also this This daily FX is indicating the building permits might be High-importance, I'm not sure about that and Then finally on Friday Michigan consumer sentiment At 10 a.m. And of course Friday is the Monthly options expiration and March is a big one that the quarters are typically large Explorations and recall for the SPX There are two settlements during the day the a.m. Settlement for the standard monthly contracts and then the afternoon settlement the p.m. Settlement for the weeklies and Then all other Options expire at the end of the day the monthly options Okay, so that is the the news and then Just a quick reminder the FOMC meeting is next week. So that will be next Wednesday And one thing that I want to want to point out it's worth taking a look at here is The CME Fed watch tool and this is really interesting The last time that we looked at this I can't remember it it must have been a couple weeks ago There was about a 70% chance of a 50 basis point hike And that has shifted dramatically So the current target rate is 450 to 475 So now this is not showing any chance of a 50 basis point hike and it's showing a 64% chance of a 25 basis point hike and almost a 36% Chance of no hike at all given the recent Recent events So this is pretty interesting and You know this may very well change tomorrow with the CPI data coming out So just something to keep in mind All right, let's take a look now. Let's start our positional analysis. Let's take a look at some charts So the first thing to take a look at is this book map chart This is the ES futures and note that this is rollover week. So I have rolled over to the June contract the M contract and the There's been a substantial shift in the the difference Between ES and SP X those levels it was about one point last Friday for the March contract and I last I calculated it. It was about 32 points So that complicates this chart somewhat and you know recall from you know, I've shown many times how important The SP X levels are on the chart So before I dig into this any further I want to go take a look at a larger time frame where we're just focused on SP X and the spot gamma levels So again, this is just showing SP X and The key spot gamma levels. These are updated Daily in a think or swim think script that you have to update manually. It just takes a couple of minutes So the key levels here first of all, there's the put wall now it has moved down to 3,800 from 3,900 yesterday and then the key gamma strike and the volatility trigger Remains at four thousand and just a brief note about the volatility trigger that is spot gamma's gamma flip level And this means that below that level Market makers position on the gamma curve It's a negative and we'll see in a minute when we look at the data that it is quite negative Extremely negative and this indicates that market makers traders are long puts market makers are short puts and they have to sell futures to hedge their delta exposure as price drops and as price Rises and implied volatility drops they can buy back their short short hedges So with the gamma of this negative that's certainly an important dynamic to to keep in mind And then the call wall remains up way up here at 4,200 Definitely out of play All right, so that is a 20-day one-hour chart and now let's take a look at a shorter time frame still with a thinkorswim chart just focusing on price and levels for spx and This is showing the Here this 3850 level Which was noted as support and the spot gamma am founders note and Then this 3,900 level which was noted as resistance So those levels have deaf Definitely been in play today. All right. Now. Let's take a look at at book map and again remember I'm looking at the June contract now and For anyone new to book map just a quick note if you have already had the H contract up The way to roll over and book map is just to subscribe to the new Contract the the M contract then you can come down to your chart click chart settings and Adhere at chart settings from and I've already unsubscribed from the H contract But you can just inherit all your settings from the H contract So it's really just a simple two-step process to subscribe to the new contract and then Inherit the chart settings from the old contract And also note that the spot gamma levels Are no longer working for the March contract So speaking of spot gamma levels I've got two columns of notes here. This is the spot gamma cloud notes and These are provided to spot gamma subscribers And cloud notes they're updated automatically So this is showing the SPX 3850 level and Spot gamma is using a 40-point difference here between ES and SPX and again, I calculated about a 32-point difference and I'm showing that in my Cloud notes here So here is the 3900 level SPX 3900 resistance 3850 support I'm also showing the ES round numbers and then finally up here. I'm showing the spy Key gamma levels put wall call wall key gamma strike volatility trigger and I had to calculate the with a new ES contract. I had to calculate the ratio again and Just for anybody who might be interested. I calculated 10.09 is the ratio between ES and spy. All right, so those are the levels that are in play For ES and you can see that the also the ES 3850 has been in play today and And JEC noted in another post that This double bottom here was a good entry point and you can see the shift in order flow Just after the cash open Positive or rising cumulative volume Delta. Let me just get that out of the way Rising cumulative volume Delta. That's the pink line and then buy stop orders and that is the Yellow line rising yellow line and both continue to rise and then right around 11 a.m.. Some Buy iceberg orders came in and that's shown with the this rising light blue line showing the buy iceberg orders and Not a lot of not a lot of volume there and the the buy Iceberg orders not a lot. I guess a lot of commitment by Larger traders and just for those of you who may not know iceberg orders are a CME order type for rhythmic for future CME futures Provided by rhythmic data and this is what larger traders use to hide their size Okay, so that is the That's the ES futures and those are the charts the levels in play and Let's talk about shifts in levels and there were a few first of all the volatility trigger for spy drop down slightly from 402 to 400 and Then much more significantly The put walls for SPX and spy both dropped so the put wall for SPX dropped from 3,900 last week to 3,800 today and then spy drop from 390 to 380 and then very strangely the spy call wall Jump from I think it was 397 Yeah, 397 last Friday to 430. So it's not even shown on the gamma level charts You know that may come back closer in line tomorrow But anyway, that is the so the call was not in play regardless All right, so those are the the levels the shifts and levels again the most significant is the the shifts lower and the put walls for 3,800 and 380 and William C. Ask. Who's the larger trader? And I don't know Some large hedge fund institution. I don't think it's the Fed. I don't think the Fed is here trading futures So market makers I And market makers I don't think use iceberg orders. I Think they're just in there buying and selling. They don't care about price. They don't care about hiding their size They're just hedging their delta exposure Okay, so those the Again the levels the shifts and levels Significantly is the put wall lower now. Let's take a look at the gamma levels and see where these charts come from or these levels come from So these are the absolute gamma levels first of all, we'll look at SPX and This is from spot gamma showing The again the absolute gamma levels for SPX. This is the zero line and above the line That is positive gamma or call gamma show them with the black bars and Below that line. That's negative gamma or put gamma Show them with the teal bars and this is the 4,000 level that remains the key gamma strike or the absolute gamma strike That's the strike with the largest absolute gamma and that can act as support resistance or a magnet and Then the here's the 3,800 put wall again shifted down from 3,900 to 3,800 that's the strike with the largest net negative gamma and that can be expected to act as support and that Behavior may differ a little bit Between the indices and single stocks and I would say that statement that it can be expected to act as support Generally holds More true is more reliable for an index SPX and spy rather than single stocks So 39 3,800 is the put wall again the strike with a largest net negative gamma and then 4,200 the call wall is not even showing on this chart 4,100 is the highest level and note the the dominance of Put gamma Down below the 4,000 level. You know, there's some call gamma, but the dominance is is put gamma. All right, let's take a look at spy and spy 390 is the key gamma strike or the absolute gamma strike and Then 380 is the put wall and then again the 430 Call wall that's the strike with the largest net positive gamma that can be expected to act as resistance That's not even shown on this chart. So there's the put wall the key gamma strike and note that the You know the again the dominance of put gamma below the 400 level and Then while we're on this page, let's take a look at the combo levels and this is the S&P 500 combo strikes. This is combining SPX and spy into one number and this in this case It's converted to an equivalent SPX number and notice here right around the Right around the 4,000 All the put gamma below that level and that is the 4,000 is the volatility trigger again That's the spot gamma's proprietary Gamma flip level with negative gamma below and let's take a look at these numbers in terms of spy Here's the 400 level and again all the note all the put gamma below that level and 400 is the volatility trigger for spy and Let's take a quick look at Nasdaq ever Nasdaq will look at QQQ and For QQQ 290 is the key gamma strike And there were no shifts in levels for QQQ today 285 is the put wall and 310 is the call wall and again, there's the dominance of put gamma below the 300 level Okay, so those are the gamma levels for the S&P 500 and Nasdaq Now let's take a look at some data And this is very interesting. This is something that I look at every day this is gamma notional and Indicating market makers position on the gamma curve for SPX in the left column spy in the middle column and QQQ in the far right column and all of these numbers are Extremely negative and what this means is this is market makers position on the gamma curve and In a negative gamma environment this means that and we just saw that traders are long puts market makers are short puts and as price decreases they have to Sell futures to hedge their delta exposure. So for SPX and spy market makers are selling ES futures and These numbers dropped from last week so last week MnOtional for SPX was Minus 932 and it is shifted to more negative today at minus 1083 and spy gamma notional on Friday was minus 2809 and it is shifted to minus 3000 today and then for QQQ Gamma notional was minus 752 on Friday and now it is minus 916 So this can work in a couple of ways and I talked about this last Friday the The negative gamma Vanna feedback loop where if price is dropping and apply volatility increases market makers will have to Continue to sell futures to hedge their delta exposure As price drops and that can create a feedback loop and so that's one way this could work and then the The other way around is a put Vanna rally and that's can certainly happen With and you know, certainly something to look for with gamma notional this large this negative If Price starts to move higher. Let's say the CPI report comes out tomorrow better than expected Keeping in mind that traders have paid very high prices for puts and most likely they're buying either puts that expire Friday or either zero DTE puts and You know, whatever the case those puts that they traders have bought and they're probably probably puts that expire Friday short-term puts as those As price rises those puts will very quickly lose value Due to increase in price a drop in implied volatility, that's the Vanna effect and that can We've seen that in the past and CPI reports that that is That fuel can spark a pretty powerful rally Now of course complicating that as the regional bank issue So just something to keep in mind something to look for Okay Finally, let's take a look at the Vanna charts and this is a graphical illustration of what I was just talking about this is the SPX Vanna model and one other thing that we'll see on this chart is the charm effect So what this is showing is Market makers delta notional that's shown on the vertical axis their delta exposure will increase as price decreases in a negative negative gamma environment price is shown on the horizontal axis and then this Green curve is showing the current expiration So for SPX that would be today and that this is all showing how market makers delta notional changes with changes in price and Changes in implied volatility that's shown by the green curve and that's the Vanna effect the change in delta with a change in implied Volatility and again, this works both ways. I was just talking about the negative gamma Vanna feedback loop going down or put Vanna rally Going up and this black line is showing next expiration it will Typically that's going to be for the the Friday expiration and that is showing how market makers delta notional changes as time passes and The reason that's important this week, this is a big expiration week They're most likely going to be a lot of puts that traders paid a lot for that are going to expire this week and just due to the effects of Of time they will start to lose money very they will start to lose value Very quickly and that's the charm effect the change in delta as time passes So both the Vanna and charm effect will be in play this week All right, so that is SPX Here's spy showing the same thing just a steeper curve indicating that You know again gamma notional for Spy was about three times the size of SPX and then there's QQQ and then finally Let's take a look at this is my Key gamma strike list for all the stocks of my watch list and I track this every day and I know the key gamma strike For the previous day and I compare that with the the current day So this is from today in The D column and the E column is showing the current the key gamma strike from the previous day And then I color code these red or green indicating whether it dropped or Increase from the previous day so here in the case of AMD and meta the key gamma strike brought dropped from the previous day and I color code that red and this is just a quick visual reference That Really indicates to me that I need to investigate further So I would go into equity hub and look at these stocks and see how there were see if there were Any shifts in any of the other levels All right, let's take a look at some setups now and again. We're gonna. Let's let's start looking at hero here And I'm gonna look at the X plus spy and this is showing the combined signal for SPX and spy and For those of you who may not be familiar with hero hero stands for hedging impact of real-time options and it is showing options trades and Market maker hedging activity around those options trades and A rising hero line that the price is in white hero is in purple and rising hero line means positive Delta trades market make traders are Selling puts and or buying calls that's indicated by a rising line in a falling line Those are negative Delta trades indicate indicating that market maker or traders are selling calls and or buying puts and I use this signal If I'm trading any form of the S&P 500 whether it's futures. Yes futures spy share spy options or SPX options. This is the The signal that I use this combined signal and To be honest here, I did not find much Much help in this chart, it's almost showing a mirror image of price up until about one o'clock so given the rollover and What I saw here, I I decided to focus on just stocks today All right, so let's let's take a look at some stocks now and there were some I thought much more clear signals And let's start with Apple zoom in on the morning and There was definitely a strong correlation between Apple Between actually let's Calls Traders buying calls and Apple And price action, so let's go take a look at that book map now Excuse me. So here's Apple I I thought this was a much easier read and many of these stocks much easier read than the S&P 500 today nice uptrend in the morning confirmed by call buyers and If you're trading stocks and you want to looking for long That's certainly what you want to look at as traders buying calls Market makers are selling the calls and they have to buy stock to hedge their delta exposure And again remember traders are buying calls and there were a couple of nice setups here Let's pull back to VWAP The first setup After price jumps up above the 140 hedge wall and first target At the 150 keygamma strike and the liquidity there Then a pullback not quite to VWAP and then the target above at the 153 liquidity there So nice trending setup here and Apple. All right, let's go back and we'll take a look at go back to hero here I'm gonna zoom all the way out so you can see that Traders continue to buy calls and that is definitely driving price action in Apple today and note the notional value is About 64 positive 64 for calls Minus 43 for puts so they're buying calls and buying puts but they're buying more calls the The calls are having the strongest effect on price Let's go back and take a look at the total signal and here. It's a little bit more difficult to read But when you separate out of puts and calls, it's pretty clear that call buyers are driving the price higher today so Apple much Much simpler setup than ES no roll over to deal with No Regional bank issues just just Apple Much simpler easier setup today and we'll see that in many stocks. Okay, let's take a look at So Lou says Auto volume is still one-tenth of what it should be Let me show you this there's not I've done everything that I can do this is This may be really strange to look at this is what I'm using to stream to YouTube This right here is my mic and it's set to max volume That's all I can do. I'm sorry please Again, there's nothing else that I can do Join us in discord and maybe it'll be better All right, so let's move on. Let's take a look at AMD and very strong correlation between hedging flow and price action in AMD Let's take a look at book map and I thought the first Reasonable entry here given all the the pink dots market sell orders going down and Moving up and then order flow shifts more positive here with this Reversal higher at at VWAP Price target at the 83 hedge wall Okay, Lou. I'm sorry. I can't respond any more to that Again, I'm doing everything that I can Okay, so nice setup setups and Apple and Amazon or app Apple and AMD and let's take a look at Amazon now Another nice strong off trend uptrend. So one thing to keep in mind here is The S&P 500 is a combination of 500 stocks multiple sectors so there's a battle going on between the financials and tech and Tech has been very strong today and financials weak. I think energy has been weak too. So You know I You know all these tech stocks have been good good longs today Okay, so there's Amazon Nice strong uptrend and let's take a look at At hero for Amazon strong correlation, especially up until about noon or so Let's zoom in on this so another None that I set up go back to book map confirmed by hero and options trades and targets at liquidity levels here at 93 and Then the 94 hedge wall and then the 95 key gamma strike Okay, next is meta. You know order flow not quite an easy as easy a read except for the Reversal higher at the This is the one not a 175 And this is actually the 175 is certainly a key gamma level the put wall key gamma strike and hedge wall so the very important level for meta and reversal higher at that level that are a little pullback at 176 and Then prices heading up and interesting that we Some of these tech stocks are already heading up towards their upper edge of the expected move for the week and this is something that That I get from the options market This is again for the week the upper edge of the expected move and let's just see I See if I notice that on any other stocks that So far so AMD bounced off the lower edge of the expected move So there's Apple already at the upper edge of the expected move Metta, all right, let's go take a look at and hero another Strong confirmation strong correlation between options trades hedging flow and price action Okay, we's ask if you have a question about book map, especially Something an issue with your book map. Please Contact support at book map calm That is something that I can't help you with in my webinar here Okay So there's meta, you know another good strong tech stock today Confirmed by options traders. Let's just see what they're doing So they're selling puts and buying calls and it looks like they've started selling their calls just after after One o'clock and then started selling puts. All right, so that's a meta Let's take a look at Microsoft and this These large Vertical lines here. These are big block trades that kind of obscure the signal But let's let's zoom in and see if we can look we'll look at Hero before that signal We can see the strong correlation When the first 30 minutes or so, let's go take a look at book map Microsoft Another strong tech stock already at the upper edge of the expected move Nice strong uptrend and targets at the 250 key gamma strike 251 liquidity 252 hedgewall and it looks like Microsoft may be heading up to the 260 liquidity and these high liquidity levels make great targets for stocks price seeks liquidity and these Orders these are limit orders passive sell orders and the order book for stocks typically come in at the At the RTH open and stay there until they're filled. All right, there's Microsoft Let's go back and take a look at hero again and what we're gonna do now is zoom so that that The action of that that large block trades Don't obscure the action so much and you can see the strong correlation Continuing to look at Nvidia and this is pretty typical of Nvidia kind of morning chop and then This stronger correlation begins around 10 a.m. And Notice how price rises and then stalls as Hero flattens out. All right, let's go take a look at book map So here's Nvidia the quick jump up like a lot of other stocks and then this chop Again pretty typical price action Multiple tests of VWAP. That's the light blue line and then price finally moves higher Let's see if we can get any clues from CVD cumulative volume Delta and yeah, we can see that This cumulative volume Delta Starts to rise around 12 30 and it's continuing to rise and you can see the The green dots Starting to come in here. So before the green dots are just up at the highs here But now they're coming in Lower down So aggressive buyers are coming in at VWAP here around 1045 to 11 o'clock and that starts to move price higher out of this consolidation So Nvidia can be a great stock to trade. You just have to be pretty patient Okay, so Ali Ali asked the dash yellow line and book map All right. So what did what these lines are? So let's Let's separate two things. So this is What I'm gonna show is just I've turned off the heat map so these yellow White and red lines are something that I Am I I'm drawing on My book map chart with an add-on. I use the price lines add-on This is something that That I use just for convenience. I like to see Something that stands out that marks the round number levels. So those are the yellow lines. All this is is Around number level 227 226 then the white numbers are The key spot gamma levels the hedge wall the key gamma strike the call wall the put wall so there's spot gamma levels and then a Big round Big round the zero or a five number that is not a key gamma strike I mark with red So if this T 230 was not the key gamma strike, it would be red and that's just me that is my You know the colors that I choose to use this is Again, just an add-on that I like to see these lines just for convenience And I do this again with an add-on and these are my cloud note levels for stocks and that is the The color coding that I use and again, this is a an add-on that I purchased in the bookmap marketplace and These levels change from day to day the Spot gamma levels and I just changed them in a spreadsheet and they're updated. So those are my levels I'm going to leave those on and now I'm going to turn on the heat map and this is the This is a book map feature. It comes with book map and it's showing the history of the The orders in the order book so above these are sell orders these are limit sell orders in the order book and For example, let's just zoom in here You can see at 233 right now They're over a little over 11,000 orders sell orders that at that level and this is showing the history of Those orders at that level and it looks like it's held pretty constant that this color remains the same and The intensity of the color Indicates the the size of the orders. So let's zoom out just a bit. I'm going to go up here to 235 and as you would expect at a zero or a five number There are more orders and note the intensity of the color there is Darker red than the 233 level indicating there are more limit orders at that level and Our char ass doesn't spot gamma place the levels on the book map chart for you and they do for For futures for ES NQ RTY But for stocks they do not do that so why you have to do I have to I do that manually I want to see that and I do that manually and the way I do it again is With this price lines add-on And I've configured this and then I've just got a I've got a spreadsheet that I update every day So it takes a few minutes But that's in that's part of my morning preparation is to Is to set up these level correct levels on the charts and these levels come from they come from the Spot gamma equity hub and we were just looking at Nvidia So here So here are the key daily levels for Nvidia shown here, and you can also go here To this history and see the levels for the last Last 10 days so I can compare the levels from the previous day to this day so I can see that the The hedge wall drop from 235 to 225 and the put wall drop from 230 to 220 and Then I just I update my spreadsheet with the new levels and again, it just takes You know maybe 30 to 60 seconds per stock You know maybe a minute per stock to Depending on the number of changes All right, so that's hope that it explains that And okay, so just some comments and discord. All right, let's go back and we're on the video zoom out notice how as Options trades hero starts to shift up price starts to move up again Let's go back and again. We're still looking at very bullish order flow and Days like today there You know we've seen quite a bit of drops down to VWAP. I guess that's where larger traders like to like to get in right, so Let's go to QQQ now And another strong uptrend make sense all these tech stocks Rising let's go take a look at hero and For QQQ there was a strong correlation in the morning And that it looks like it has leveled off somewhat Let's take a look Closer look at this. I'm gonna zoom out So that big morning jump was not Not dominating here and still no clarity So strong AM correlation With this big jump in hero Let's just take a look at one other thing and we can change the Rolling window the look back period Let's change it to 30 minutes and see if that gives us any more clarity and They won't Zoom in a little bit And not really So far the individual tech stocks have been a lot easier to read. All right, let's take a look at snowflake And I'm about out of time. This is on my other computer I Just a note. I have added snowflake to my watch list here and I have removed Google I just Google does not move enough and snowflake. There's a Often a very strong correlation between hedging flow and price action and Good readable order flow and book map. So tomorrow I'm gonna have snowflake on my main computer and I will remove Google so traders are Buying calls and that is primarily what is driving price action the the put line the blue line is fairly flat and The rising orange line indicates that traders are buying calls and that looks like that set up a You know good long this morning traders Coming in and buying buying calls All right, then I'm gonna wrap it up with Tesla and Tesla the options trades and hedging activity has been a Little bit Unusual today. Normally there's a much stronger correlation between hedging flow and price action, but still enough here to For a set up in the morning long set up. Let's go take a look at book map Here's Tesla and one thing I really like about Tesla is the Order flow. I think it's very easy to read notice Here the shift from pink dots I'm looking at this. Let me just zoom in on this First thing in the morning We'll look at that like nine o'clock to 12 and you can see the clear shift in order flow pink dots market sell orders a Couple of buy sweeps coming in that's the show by the small green dots and Then the final sweep Down to the 164 liquidity level and then aggressive buyers coming in Right around 940 945 taking price up to the 170 put wall and then Finally a test of VWAP and price starts to move higher again and notice the CVD is rising the entire time so very very bullish order flow here in Tesla today and multiple good long setups With pullbacks Here the first one to VWAP Then another deep pullback to the 171 171 172 level, let's just take a final look at hero and see See what it looks like now And yeah, the correlation has definitely picked up again No help there separating outputs and calls the the total line gives much cleaner signal Okay, so that's it With the rollover this week, I'm probably going to be focusing more on on stock We'll just see how it goes Again remember CPI report coming out tomorrow should be interesting with all this negative Gamma PPI on Wednesday and Then the options rollover on Friday, so an interesting week and Thanks for watching. Thanks for your questions and comments, and I will see you tomorrow