 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. Creating futures, equities, and options involves substantial risk of loss and is not suitable for all investors. Pass performance is not necessarily indicative of future results. The best way to contact me is through Discord. This is my contact information. Again, the best way to get in touch with me is through Discord. My name on Discord is Doug P. Also in Bookmap Discord there's an Options-Dash-Doug chat channel. That's a great place to post questions, comment, and comments and content related to the topics of my presentation and the topics of the channel which I'll go through in just a moment. I'm also on X, formerly known as Twitter. My name there is at Doug Pless. And just a reminder, on YouTube I am streaming at 1080p today right now. I just had to change mine. The screen was kind of blurry and I upped it to 1080p. So if you're having any problems with screen resolution on YouTube, you can go and click the gear, change your settings, and you can change it to 1080p. Alright, so again here's my contact information on Discord Doug P. Alright, the focus of my presentation today and the focus of the Options-Doug chat channel is options, order flow, the impact of options markets on stocks and futures, and the influence of market maker hedging flow on price action. I have a two-step process for trading and the first is planning and I use positional analysis. I look at how traders and market makers are positioned in the options market and how those positions change from day to day to develop a thesis regarding the expected trading range, excuse me, the expected trading range and volatility for the day as well as a directional bias. And the second step in my process is execution. 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 injuries and exits. And when I talk about setups today, I will be talking about setups in an underlying asset. For example, the S&B 500 setups can be taken with ES futures, SPY shares, SPY options, SPX options, or even ES options. Questions and comments are welcome and I will be watching both the options-duck chat channel and Discord as well as the chat and YouTube for your questions and comments. Please feel free to post and I'll do my best to answer your questions. And hello, Don. Welcome. Glad you're here. All right, here's my agenda for today, Tuesday, November 7th. First of all, I want to go over news items for today and for the rest of the week. Then I'll go through my positional analysis. Then I'll review some setups from earlier today and then I'll take a look at the live market. And when I get to the live market, if anyone has any stocks they want me to take a look at, please let me know and I'll be glad to do that. All right, let's start with news. So really today there was nothing and it's also a pretty light week except for a number of Fed speakers and highlighted by Jerome Powell speaking tomorrow before the cash open. He speaks at 9.15 a.m. Eastern time and then he speaks again on Thursday at 2 p.m. And then finally Friday the only higher impact economic data release for the week is consumer sentiment at 10 a.m. All right, so that's the week. Really the focus is on Fed speakers, especially Jerome Powell. All right, let's take a look at the positional analysis now. I'm going to start with ESB 500. This is the ES Futures and Bookmap. And before I take a closer look at this chart, I want to take a look at a larger time frame. I'm going to go to the SPX. This is a 30-day one-hour chart. Let me point out the key levels and key turning points on this chart. So first of all, this is the October jobs report on October 6th. Gamma squeeze after that and then price found resistance right around $43.90 right around where SPX is right now. And there were, I guess, several factors in play. The Treasury yields and war in the Middle East, price move lower. And the next turning point, potential turning point, was the October expiration. And that was a very negative gamma put dominated expiration. The expectation was for a put-vanna rally, which is typical of a negative gamma put dominated expiration. As those puts expire, market makers can buy back short futures. That really only happened for a couple of days. Price continued lower. And then last Friday, Friday before last, traders loaded up on puts concerned about weekend risk. And apparently there was nothing that happened in traders' minds that would justify those puts. And Vicks quickly dropped and leading to a huge put-vanna rally that began on Monday the 30th, October 30th. SPX went straight up and now appears to be finding resistance again at around the $43.90 level. And the gamma notional for the SPX has shifted from very negative down here, gradually decreasing until it is became positive, became positive on last Friday, the Friday of the jobs report. Let me point out the key levels on this chart. First of all, the dash purple lines are showing the lower and upper weekly expected move. That's based on the options market that changes once a week. And then the next levels I want to point out are the lower and upper daily expected move. And that is also based on the options market that changes every day. There are also some spot gamma levels on this chart. These are, I'm going to point out the key daily levels. These are spot gamma proprietary levels based on gamma weighted open interest. Excuse me. The first is the put wall down here at 4,000. That's a strike with a large net negative gamma that can be expected to act as support. And that is well out of play for today. Alright, the next level up is 4,345. That's the volatility trigger. And that a spot gammas proprietary gamma flip level are really a volatility trick trip level. And below that level, market makers position on the gamma curve is negative in a negative gamma environment. Market makers have to trade with price to hedge their delta exposure, and that tends to enhance or increase volatility. On the other hand, like SPX is trading right now, as I mentioned, the positive gamma environment, market makers have to trade against price to hedge their delta exposure. And that tends to subdue or decrease volatility. Alright, the next level up is 4,400. That's right here. That is the absolute gamma strike. That's the strike with the largest absolute positive and negative gamma. That's also the call wall. That's the strike with the largest net positive gamma. And that can be expected to act as resistance. So that level is definitely in play for today. Alright, so those are the key daily levels. Also, the expected move. Alright, let's take a look now at a shorter time frame. I'm going to go to a one day chart for SPX, zoom in just a little bit. So this combo L three level has been in play for today. That's at 4384 resistance, maybe resistance again. Just above that is the upper daily expected move for SPX. Alright, so those the spot gamma levels in play for today, mainly this combo L three level, as well as the upper daily expected move. Alright, let's take a look at book map now. So in book map, I have my own cloud notes. So I can show SPX levels and spy levels and any other levels. Excuse me, all in one column here. Alright, so I have SPX levels. Here's that C three level. And just above that 4376. Oops, I think I pointed out the wrong level. So anyway, those are SPX levels. Here is the SPX 4350 that was noted as support. In the spot gamma am founders noted did its job. And then right at the cash open, this is the spy 435 level. That is the absolute gamma strike for spy, as well as the zero gamma level. So I have spy levels, SPX levels, also big round numbers for ES. And there's the upper daily expected move for ES. Alright, note that there is a difference in price between ES and SPX. And today it's right around 17 points. And that's what I'm using. So ES SPX 4350, for example, is shown at ES 4367. So ES minus SPX is 17 points. Alright, so again, the key levels and play 4350 support, then right around the cash open around the 4435 level support also VWAP and then deeper pullback to VWAP again, as well as 43, 436 spy 436 large gamma two level. And we'll talk about setups in a few minutes. Alright, shifts and levels for the SMB 500. The volatility trigger for SPX did shift higher slightly from 4335 to 45. The volatility for spy shifted lower. And also the absolute gamma strike for spy shifted higher. And that's shown here. Some minor shifts and levels for the SMB 500 today. Nothing like yesterday. Massive shifts higher in the SMB 500 NASDAQ and Russell 2000 yesterday. Alright, that's the SMB 500. Those are levels of play for today. Minor shifts higher and lower and levels. Here's NASDAQ. It's been a very bullish day in the NASDAQ, led by large cap tech, magnificent seven stocks. Alright, let's take a look first of all at QQQ so we can isolate QQQ levels. So there's a one day chart for QQQ. Round number levels, somewhat in play for today. Note QQQ is trading well above its volatility trigger. And earlier the 373 level did act somewhat as resistance. Now QQQ trading above that level. Alright, let's take a look at NDX. Last time I looked there were really no gamma levels in play for today. So there was a kind of an odd consolidation of the spot gamma levels for NASDAQ at NDX at 15,070 and 75. Or mostly 15,070. That's the put wall, call wall and absolute gamma strike all shifted higher to 15,070 and the volatility trigger five points higher. So all the levels for NDX shifted higher kind of odd shifts. And for QQQ the absolute gamma strike shifted higher to 370. Let's go back to NQ futures and book map. Very bullish day. QQQ 369 as well as VWAP acting as support earlier today. Quick move up until about 11am and then consolidation. Again we'll talk about setups in a few minutes. Note that NQ is trading above its upper daily expected move and maybe shortly testing its upper weekly expected move. Alright, let's take a look at gamma notional to see how market makers were positioned on the gamma curve at the beginning of the day. So what I'm looking at, this is gamma notional for SBX spy NDX QQQ rut and IWM. Note that gamma notional for SBX remains positive. And this is slightly slightly lower than yesterday. It was 498 yesterday. So slightly lower today to 478. And then on the other hand for spy gamma notional still negative but shifted higher. Less negative than yesterday. And then for QQQ gamma notional slightly negative. That's really mostly neutral. Shifted slightly higher from yesterday. And also for IWM still negative and shifted lower than than yesterday. So mixed signals for the gamma notional but the thing to note is really positive for SBX and really pretty close to neutral for spy and QQQ. Alright, let's take a look at the Vana model now and see what this means in a graphical representation. I'm going to start with SBX. This chart is showing market makers delta notional. That's their delta exposure on the vertical axis against price for SBX on the horizontal axis. There are two curves on this chart. The first curve, the light gray curve, shows how market makers delta notional changes with changes in price only. And the purple curve adds implied volatility to the equation. That shows how market makers delta notional changes with changes in price and implied volatility. And remember market makers want to remain delta neutral. I'm talking about options make market makers and their job is to make markets and manage their risk. Alright, so let's take a look at price for SBX right now. Right now SBX is trading right around $43.84. So that's somewhere between these two lines. So this is indicating that as price increases market makers delta notional will increase and they will have to sell futures to hedge their delta exposure. Again, remember they always want to remain delta neutral. So when their delta notional is increasing, they have to sell futures. And if price drops, they can buy back their short futures. So they're trading against price in this positive gamma environment. Also, if price starts to drop, market makers will have to sell futures as well. So at this point in this bottom trough of this gamma curve, Vana model, market makers are going to be trading against price either direction. So there's a headwind from this Vana model in either direction. Alright, so that is SBX. Let's take a look at spy now. Very similar curve, slightly shifted towards a more negative gamma curve. Let's see where spy is trading right now $437. Also near the bottom of the trough. So if price moves continues to move up, market makers will have to sell futures to hedge their delta exposure. Price moves down, they'll have to sell futures to hedge their delta exposure. Finally, let's take a look at QQQ. QQQ right now trading right around $373. So on this upward sloping portion of the Vana model here, indicating as price continues to increase, market makers delta notional increase, and they'll have to sell in Q futures to hedge their delta exposure. Now one thing to note, according to the levels, the call wall for QQQ is at $380. It has remained at that level for quite a while. So according to the levels, there is room to run up to $380 for QQQ. Alright, so that is the Vana model. So based on this, my thesis for the day was looking for lower volatility and directional bias. Generally, looking for a more of a range day, lower mean reversion type of day. That doesn't mean it's going to happen. And past 2910 says he's closing a short position with huge loss. And yeah, my iron condors and strangles have not been doing well lately. Trying to manage those. Alright, so let's take a look at some setups. Now I'm going to start with the SV 500. And I want to see what options traders are doing. This is the hero signal available from spot gamma to spot gamma subscribers. What this chart is showing is the hero signal hedging impact real time options. There are two lines on this chart. The first, the white line is showing price for SPX. The purple line is showing the hero signal. And that is showing options trades, market maker hedging activity for a combined signal of SPX, SPY, XSP, and ES futures. All right, let's zoom in on this chart. So really the key for the day I want to focus on setups now was this reversal higher right around 940. Initially price moved lower. Traders were taking negative delta positions and then quickly reversed higher. Traders started taking positive delta positions. There was a pullback. Traders continue to take positive delta positions. Notice options traders took their foot off the gas, price consolidated moved lower, and then started to move higher again around 1230 as traders resumed taking positive delta positions. So very strong correlation today between options trades, market maker hedging activity and price action in the SV 500. We'll slice and dice this a little bit more in just a moment. Let's go to book map now. So again a very bullish day. Here's the initial long setup. You can see the shift in order flow watching the volume dots. The volume dots are showing market buy minus sell. Magenta dots are showing more aggressive sellers. They're more sellers than buyers. And that shifts to green volume dots showing more buyers than sellers. That's pretty typical of this V reversal. Price consolidates right around VWAP that's shown by this light blue line. Also point of control that shown by the purple line as well as the spy 435 absolute gamma strike and then moves higher. There was that pullback that I talked about and then the deeper pullback around 1230 down to 436. Almost a VWAP again. Aggressive buyers start to come in as options traders started taking positive delta positions and then price resumes the uptrend. So there's the read of the long setup today in both hero, very good signal and hero as well as the order flow and book map. And note the rise and fall of CVD that's shown by the dark blue line rising cumulative volume delta levels off drops then starts to rise again also giving a good directional signal. Alright so that's the SMB 500. Alright let's take a look at NASDAQ now. And past 2910 you're welcome. Alright NASDAQ trying to break out above the NQ 400 level. Let's take a look first of all at at hero to see what options traders are doing. I'll come back to this and slice and dice it in a minute and we can see what zero DTE traders put puts and calls. So let's go to NASDAQ now. So this is a combined signal of NDX and QQQ showing a very similar pattern to the SMB 500. Sharp move higher in hero, price responds, consolidation drop, pullback in price, options traders started taking positive delta positions again. They take their foot off the gas price consolidates then they start taking positive delta positions again and price moves higher about the same time as the SMB 500. 940 initial entry, 1010 secondary entry and 1230 another entry. Let's go to back to book map. Here's the initial entry. Notice the very clear shift in order flow. Magenta dots, aggressive sellers, large green volume dots at the cash open pullback and then here was the 1230 pullback and here the upper daily expected move acting as support. Alright let's take a look at one other hero signal that provides a lot of great information especially for the NASDAQ and that's this new hero signal for the Magnificent 7 and that is also a combined signal for these stocks known as the Magnificent 7. Apple, Amazon, Google, Meta, Microsoft, Nvidia, Tesla. What this chart is showing is traders have been buying calls in these stocks today. That's shown by the rising orange line, the positive notional value there. When traders buy calls, market makers sell the calls and they have to buy stock to hedge their delta exposure. Alright so this is also a great signal to take a look at for the NASDAQ since these stocks make up such a large portion of the NASDAQ 100. Alright so that's those are the setups in the NASDAQ and the SOB 500. I want to go back, circle back to the SOB 500 now so we can take a closer look at what traders are doing today. So first of all I'm going to take a look at puts and calls. So today traders are buying calls that's shown by the rising orange line. They're also buying puts that's shown by the falling blue line, the negative notional value there. Today the call buyer is much more aggressive and that's what is helping to drive price higher. Again when traders buy calls, market makers sell the calls and they have to buy in this case futures to hedge their delta exposure. Alright sorry about that. Just note that SpotGamma is working on this issue, this auto zoom issue. Hopefully it'll be resolved soon. Alright let's take a look at one other thing. I want to take a look at next expiry. So this chart, this next expiry is showing options trades that expire today. So that is for the SPX. The SPX, SPY, ES all have options that expire every day. So in this case next expiry would be the zero DTE, the options that expire today. And it looks like there was a very strong correlation between all expirations, all trades, all expirations and the zero DTE up until about one o'clock. Indicating the zero DTE trades up to that time we're making a large portion, making up a large portion of the total notional value and then that kind of those kind of lines separated right around 1 p.m. and traders started taking positions in longer term expirations. So that could be anything from tomorrow to next year. Alright let's turn that off. Alright let's take a look at some stocks now. Alright so we just, I don't know if anyone remembers, yesterday I pointed out all the red in this level, this area. All these signals were red during my webinar, just the opposite today. Most of them are green. So really you can just pick your trade and this is mostly large cap tech stocks, the Magnificent 7. So I'm just going to pick out a few that I watched earlier today. First of all here's Microsoft. Note 360 is the call wall. Alright let's zoom in on this, point out a couple things. So again the call wall right here at 360 that's also the key gamma strike. That line, there's a light blue line that may be difficult to see. I'll draw the red over and top of it. That's around the 360 level. So there was a breach of the call wall. Note also the timely flow alerts and traders were taking positive delta positions. Let's take a look. So this morning they were buying calls, showing some of the rising orange line, and then they took their foot off the gas and price leveled off. That's a very typical pattern. That occurs anywhere from typically 11 a.m. to 1 p.m. So in this case around 11, traders took their foot off the gas, they stopped buying calls and price consolidated. One other thing about this call wall breach, that call wall is indicating the greatest amount of, excuse me, call gamma or put gamma. This is when for stocks, spot gamma assumes that traders are buying calls. Market makers sell the calls as those calls at that level go into money as price increases above that level. Market makers, those calls are going, gaining in delta. As they go into money, delta is increasing and market makers will have to continue to buy stock to hedge their delta exposure. All right, so that is Microsoft very bullish day. Let's zoom out now. So Microsoft consolidating just around 362 now. Let's go take a look at book map. Go to Microsoft and Microsoft has been crazy strong. It rallied sharply during that put Vanna rally week. All right, so there's Microsoft. Again, remember 360 call wall, key gamma strike. Note the liquidity at this level. There were sellers at that level and price sliced right through it as that call wall breach, those calls went into money. All right, so that's Microsoft. Another bullish day. All right, the next is Nvidia. All right, let me check for questions. All right, past 2910 says I've never seen a no day pullback. A few points in a week. Yeah, this rally has been very strong. I think CNBC reports the number of days Nasdaq has written risen. I think this may be number eight. Up days in a row. I believe for Nasdaq. All right, here's Nvidia. Another strong day in Nvidia. And for Nvidia, 460 is the call wall. And after jumping up to that level, Nvidia has traded up and down around that level. And now it looks like it is moving higher. Note all the green, the volume dots, a lot of aggressive buyers in here. Also note the, just like Microsoft, the liquidity at the call wall level. There were sellers at that point and Nvidia just sliced right through that. All right, let's go take a look at hero for Nvidia. See what options traders have been doing. All right, Sparky ass. Sorry if you already said this, but I was late for the webinar. Did we bounce off any gamma levels around 940? Or was it just buying at BWAP? All right, so first of all, what is we? I'm not sure what we means. And also what could you be more specific about the level? So Sparky, I'll be glad to answer your question. Just please, if you would be a little bit more specific. All right, so here's the hero chart for Nvidia, 460 call wall. Very strong correlation between options trades, market maker hedging activity, and price action. Sharp reversal there. All right, Sparky, I'll get back to NQ in a few minutes. All right, so in the case of Nvidia, price is mostly consolidated around the around the call wall level. Let's see what traders are doing. Last time I checked, they were trading puts and calls. So they are selling puts and buying calls. Show them the rising blue line and the rising orange line. And it looks like the put sellers are more aggressive. So in either case, when traders take positive delta positions, market makers take the opposite side of that and they have to buy stock to hedge their delta exposure. All right, the next is Tesla. All right, it's finally good to see a bullish day in Tesla here. 220, the key gamma strike. Call wall up at 225. And as usual, there's a very strong correlation between options trades, market maker hedging activity, and price action in Tesla. Let's see what traders are doing. So Tesla, they are buying calls and selling puts. Show them by the rising orange and blue lines. Let's go take a look at book map. Go to Tesla, went down these volume dots just a little bit. Choppy morning session, but really resolving higher. Making more of a clear uptrend starting around one o'clock. A lot of aggressive buyers, you can see the the green volume dots. So traders are taking positive delta options positions. They're also buying outright buying stock market, market buy orders. Note the liquidity at the key level. 220 key gamma strike. Those were market sell orders. I'm sorry, limit sell orders. All right, pass. Thanks for, thanks for attending. Thanks for watching. I hope things go better for you. Yeah, I would like to see some two-way trade. You know, that I think that would help everybody. So take care, have a great afternoon, and I hope to see you tomorrow. All right, so bullish day in Tesla price continues to move higher. All right, let's spark it. Let's go check Nasdaq now. All right, so Sparky was asking about this reversal higher at 940, and it was at VWAP, light blue line, as well as QQQ 369. So a confluence of two levels there acting as support. And again, I talked about the shift from bearish order flow, magenta volume dots to green volume dots, aggressive sellers on the way down, aggressive buyers on the way up. As traders were taking positive delta positions, both in the NDX QQQ as well as the Magnificent Seven. All right, so Sparky, there you go. All right, so it looks like now NQ still having trouble making it above the 400 level. Let's check the SB500 now. Also consolidating around previous resistance, just below the upper daily expected move. Let's go back and check hero now. Go to the SB500, and you're welcome Sparky. All right, so it looks like the hero signal may be leveling off now. Let's check Nasdaq also leveling off a bit. Magnificent Seven still sloping up, but not nearly as steeply rising, not nearly as steeply as it was around 1232, 115, something like that, but still continues to move higher. All right, so that's definitely what's what's driving price today in the SB500. Let's just take a look at this heat map. So these, you know, big huge large cap tech stocks, definitely driving price today. Microsoft, Apple, NVIDIA, Google, Meta, Amazon, and even Tesla participating today. And it looks like most of the other sectors are weak, especially energy. All right, any questions? Does anyone have any stocks they want me to take a look at? All right, we can check for alerts. Here's one for Tesla. They came in just after 1 p.m., shown right here, SB500. We're going to scan through some stocks. All right, two men ask, are option buyers still buying calls in Tesla? All right, let's go to Tesla. Looks like they are. Call buyers definitely driving price today in Tesla, as well as put sellers. Call buyers a little bit more aggressive. So the dip buyers coming in on Tesla today. All right, we can go through book maps and check some of these stocks. Apple, bullish day in Apple as well, AMD. Note the shift in order flow here. A lot of aggressive buyers, green volume dots on the way up. Then a lot of magenta volume dots start to come in. A lot of aggressive sellers up around 114, 114.50. Price moves lower. All right, let's see what options traders are doing at AMD. So here's our very typical pattern. Options traders take their foot off the gas. Price consolidates, moves lower. Looks like call buyers definitely driving price in AMD today. Take a look at Amazon. Amazon trading well above its call wall at 140. That's also the key gamma strike. And I think those levels have been in place for several days. So Amazon trading well above its call wall. Let's see what traders are doing. So net for the day, earlier into the day, traders were buying calls, driving price higher. Yeah, I knew that would happen. Sorry. So earlier in the day, traders were aggressively buying calls. They're also buying puts. But call buyers definitely driving price around 1145. They take the foot off the gas. Price levels off. Let's go take a look at book map. Amazon. Remember 140 is the call wall key gamma strike. Amazon trading well above that level. Google looks like it found support of the key gamma strike. Maybe trying to get up to its call wall at 132. Bullish day in Metta. Let's see what traders are doing. So buying calls. Call buyers came in around 1010. That was that reversal first pullback for the SB500 and NASDAQ right around 1010. Traders started buying calls again. And Metta zoomed higher. Took their foot off the gas around 11. Sorry about that. Let's go take a look at book map. Metta consolidating around 320 as options traders have taken their foot off the gas. And we haven't looked at Netflix today. Let's take a look at Netflix. Looks like Netflix is almost unchanged for the day. At least it's trading right around the opening print at 436. Really no pre-market trade in Netflix. Let's go take a look at hero and see what options traders are doing. There's the 1010 pullback. Looks like price started moving higher before options traders joined the party. So mainly put sellers. So net traders are selling puts. Shown by the rising blue line. Positive notion of value. They're also selling calls. Shown by the falling orange line. Negative notion of value. So they're selling premium but primarily selling puts. Helping to drive price higher. And once again this consolidation pattern. This looks like for Netflix happened around 1130. Options traders took their foot off the gas. Price consolidates. So pullback opportunities in the morning and then start to take profits around 1130 to 12 and price consolidates. All right, let's take one last look at the SB500 and NASDAQ. All right, options traders continue to take positive delta positions. Looks like price is still stuck. Let's go take a look at book map. Still consolidating around 4400. Let's take a look at NASDAQ and NASDAQ still consolidating around NQ400. All right, so pretty typical trend day. The move is in the morning and price starts to consolidate around 11 to 12. There may be a move in this afternoon. Continuation of the trend for the SB500 CVD higher. Looks like large traders are fading this move with iceberg orders. They used to hide their size. Shown by the falling blue line on the sub chart. Large iceberg orders. Traders selling. Large traders. That's pretty typical. Large traders will sell strength by weakness. Stop line, the yellow line has pretty much leveled off. And as we just saw, the hero line continues to trend higher. So options traders continue to take positive delta positions. All right, so far for the SB500, still looking bullish and looks like now the SB500 may be trying to break out above this consolidation level. All right, my time is up. I want to thank everyone for watching. Thank you very much for your questions and comments. And remember, Jerome Powell will be speaking tomorrow morning before the cash open at 9.15 a.m. Eastern time. So that could potentially be a market mover. And we'll talk about it tomorrow afternoon. All right, thanks again, and I will see you tomorrow. Bye.