 Hello everyone welcome to options with dog streaming live daily. I'm 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 book map limited materials information and Presentations are for educational purposes only and should not be considered specific investment advice nor recommendations risk disclosure training futures equities and options Involve substantial risk of loss and it's not suitable for all investors past performance is not necessarily indicative of future results Here's my contact information 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 option stash jug chat channel That's a great place to post questions comments and content Related to the topics of my presentation and the topics of the channel that I'll go through in just a moment and Bookmap discord. Let me just say a word about that great place there are Quite a variety of traders there wide variety of content on multiple asset classes stocks options futures crypto and Also on a wide variety of languages And everyone if you're not our idea on bookmap discord, you're welcome to join Excuse me just a moment. Sorry about that. I'm also on X formerly not as Twitter My name there is at Doug Place and I did post a setup on X over the weekend It was the interview QQQ short that I talked about last Friday So if you're active on X, please take a look if you like it give me a like and a follow Here are the key tenets of my trading and The my approach to trading the first is options trades and market maker hedging activity Our key drivers of price and many stocks and futures and for the SP 500 SP X is the underlying index spy is the ETF version of that index ES is a derivative of SP X So when traders buy and sell puts and calls and SP X and spy Market makers take the opposite side of those trades and they hedge their delta exposure with ES futures and for SP X That's the only way that they can hedge With ES futures you can't buy SP X itself and the same for the NASDAQ 100 and DX is the underlying index QQQ is the ETF version of the index and then Q is a derivative of In DX and again when I spoke ESH for CME by 625 iceberg ESH for CME by 309 stop ESH for CME sell 610 We better look at Look a better look at the SP 500 in just a moment. That was stops and icebergs Alert so sorry about that. So when traders buy and sell puts and calls and in DX and QQQ Market makers take the opposite side of those trades and they hedge their delta exposure with in Q futures The focus my presentation today and the focus of the options dash 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 Have a two-step process for trading at the first is planning and I use positional analysis I look at how traders and market makers are positioned at 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 their directional bias So I'm looking at how these key levels that I'll talk about in just a minute shift up or down shift up indicates traders are looking for Expecting and positioning them to themselves for higher prices and just the opposite when these key daily levels that I talk about Move lower the second step in my process is execution I look at real-time order flow and bookmap and real-time market maker hedging flow and spot gamma hero to confirm my thesis and for setups for entries and exits Questions and comments are welcome and I will be watching both the options dash Doug 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 answer your questions and hello Steven. Welcome. Glad you're here All right, here's my agenda for today Monday, February 22nd. First of all, I want to go over news items Economic data and events For the week then I'll go through my positional analysis Then I'll review some setups from earlier today 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 economic data I think there was a bond auction today At 1 p.m. Let's take a look at the SP 500 All right, so not much of a reaction. Maybe that came a little bit late Somewhere around 115 All right, so tomorrow there are a few High-impact data reports this week. First of all tomorrow 8 30 a.m. Eastern time durable goods 10 a.m. Consumer confidence on Wednesday 8 30 a.m. Eastern time GDP that is the fourth quarter second estimate and then on Thursday the big data release for the week PCE data at 8 30 a.m. Eastern time then on Friday At 9 45 manufacturing PMI and then at 10 a.m. Another PMI Manufacturing PMI data also consumer sentiment and it looks like the job report report That normally comes out on the first Friday of the month will not be this Friday, but next Friday All right, so that is the and there are also a variety of Fed speakers this week All right, so that's the news for the week really starts tomorrow with durable goods All right, let's move on to positional analysis now. I'm going to start with the SB 500 This is the ES futures and book map And before I take a closer look at this chart I want to step back take a look at a larger time frame and I'm going to go to the underlying index Which is SPX? this is a one-day chart and SPX This current rally began last year October 30th and The SPX moved up just a little over a thousand points in that rally Up to just above 5100. All right, let's move on now to a shorter time frame so we know the SPX has rallied pretty substantially For the last four months Now let's take a look at a shorter time frame. I'm going to go to a 30-day one-hour chart Let's take a look at what happened at the recent expirations. This is the January expiration That's Friday expiration the monthly expiration at that on that date SPX broke above the 4800 level Here's the February expiration Friday expiration This is more typical price action of a call-dominated expiration a little bit of a bit of consolidation after that Options expiration Until Nvidia reported earnings taking SPX up to Just above 5100 and note during the for this year the SPX call wall has gradually moved higher from 4800 to now 5100 and That is bullish and that's for the year. All right, let's take a look at the levels on this chart I'm going to go ahead and zoom in a bit first of all the dash purple lines or Showing the lower and upper weekly expected move. This is based on the options market. I Update this once a week. I just get it from an options chain So any trading platform that has an options chain should have this data available again. I update that once a week The dash blue lines are showing the lower and upper daily expected move Also based on the options market. I update that once a day and that is based on the closing price from the previous day and I post Both of these numbers every day the evening before in Bookmap discord in the options dash Doug chat channel Are the other lines on this chart are spot gamma levels and These are proprietary spot gamma levels that provided to spot gamma subscribers based on Gamma-weighted open interest They do change every day That's these are the key daily levels that I talk about that I'm tracking whether they're moving up or down I'm going to point out the key daily levels First of all, here's the put wall. That's at 5,000 now That's a strike where the largest net negative gamma that can be expected to act as support And the next level up and that is also the absolute gamma strike. That's a strike where the largest absolute positive and negative Gamma so that's where most of the gamma-weighted open interest is concentrated next level up is the volatility trigger That's at 5,070 that is spot gammas proprietary Gamma and volatility flip level 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 their delta exposure and that tends to enhance or increase volatility on the other hand like today Market makers when SPX is above that level market makers position on the gamma curve is positive in a positive gamma environment Market makers have to trade against price to edge their delta exposure and that tends to subdue or decrease volatility So SPX is trading slightly above that level then the next level up is 5,100 That's the call wall that I mentioned before That's a strike where the largest net positive gamma and that can be expected to act as resistance So this is showing a very narrow range here between the ceiling at the put the call wall and the floor at the put wall so a very narrow range from put wall to call wall 5,000 to 5,100 and Hello Caesar welcome says the volatility trigger along with book map work very nice so far Yeah, both the spy and the SPX Volatility trigger the spy volatility trigger is also the put wall. We'll see that in just a minute. All right So for the SPX the volatility trigger and put wall both moved higher that is bullish And finally, let's take a look at now that all depends on What traders are doing today? All right, so let's take a look at there you go This is what Caesar was talking about that is the SPX 5070 volatility trigger and before acting as support the spy 507 put wall volatility trigger acting as support All right, let's take a look at one other SPX chart then we'll get back to the get back to the Book map chart for ES so this is SPX showing a See let me zoom out just a little bit Showing Friday and today showing how these key levels are acting as support and resistance So this is Friday Showing the 5,100 call wall and there's a combo level just below that Acting as resistance. This was on Friday Friday, this is today The 5070 volatility trigger acting as support All right, so those are the key levels in play for the last Last couple of days All right, let's move on to book map now So in book map, I have my own cloud notes So I can show SPX levels There's that 5070 volatility trigger that I was just talking about I can also show spy levels here Again, there's that spy 507. That's a put wall and volatility trigger Again acting as support earlier today Good targets for a short and then right around 130 before about maybe 125 SMB 500 broke down below that level all right note There is a difference in price between ES and SPX and Today it is right around 10 a half 10 and 0.5 So the ES to SPX offset is 10.5 So I'm showing the 507 5070 level for SPX at ES 5080 0.5 and there's also a an SPX ES to spy ratio that changes a little bit every day both those numbers get gradually smaller Every day and I do post all the index relationships that I'm using every day and book map discord I post the preliminary numbers somewhere around 9 a.m. Eastern time and then I post the The final numbers. I typically try to get those out around 10 a.m. I was a little bit late this morning I had something to do This morning All right, so that is the SB 500 key levels and play Volatility triggers acting as acting as support and then This is the spy 508 level show them with this white line here. The labels kind of obscured, but that is a Also a spot gamma level acting as a good entry point for a short this morning. All right, let's move on to Nasdaq now Alright. Oh, let me just mention shifts and levels for spy Volatility trigger put wall also shifted higher and the call wall shifted higher to 510 getting closer to the SPX call wall the absolute gamma strike did shift lower down to 500 From 508 to 500 So a bullish hat trick for spy with only the absolute gamma strike moving lower Or let's move on to Nasdaq All right, Naslaq also training at very narrow range today And I'm gonna take a look before I take a closer look to start. This is the NQ futures I'm gonna go to the underlying index charts. I'm gonna start with QQQ Again very narrow range today levels of play This is a combo level See three level acting as resistance right at the open then this 438 level acting as resistance 437 support so very narrow range here for Nasdaq Now it looks like this This other combo level may be acting as resistance. We'll see all right. So again very narrow range for Nasdaq That's the QQQ chart Let me take a look at NDX. Let's take a look at the last two days worth of data. This is the 18,000 level this is for NDX acting as resistance multiple times Let me just do a quick check and see what that what that level is 18,000 is large gamma 2 So one being the most important five being the least important so again that is a large gamma level for NDX and That's shown here on the book map chart. So just like like yes, I have my own cloud notes So I can show NDX levels QQQ levels 437 acting as support and then the zone between 438 and 18,000 more or less acting as resistance all right shifts and levels from the Nasdaq put wall and Volatility trigger also shifted higher for both NDX and QQQ and then the Just like spy the absolute gamma strike for QQQ move lower down to 435 All right, let me check for questions All right, that is easy Hello, welcome glad you're here All right book map works for crypto and spot gamma you get if you want to trade crypto related stocks like Coinbase or Mara You can Trade those I don't trade those We can take a look in hero but as far as the Coins themselves like Bitcoin though Again, if you want to trade those in bookbap you can but they're the options market does not drive crypto as far as I know all right, so That is easy also asked for key levels based on that chart key levels for what? I'm showing key levels for the SMB 500 in Nasdaq. All right Caesar ask I Want me to talk about the zero gamma level Compared to volatility trigger so the let's take a look at something here. Let's go to Let's see if it's on this chart All right, so this is the I Don't see any way to zoom in on this. This is the gamma level This is the gamma curve for SPX and there are two levels on This chart that Caesar is talking about and the zero gamma level is not shown This is my understanding. I would suggest going to spot gamma.com going to their free resources to get more information The zero gamma is level is exactly what it says below that level market makers position is Negative above that level Market makers position on the gamma curve is positive and the volatility trigger is actually what it says Is that's where market makers hedging will change? based on the the shift in gamma from Trading with price to trading with against price So a little bit of difference often that they're at the the same level, but they can be a little bit different So again, if you want more information Caesar, I suggest just going to the spot gamma Dot-com website go to the free resources go to the help center and you should be able to see more information All right, so talking about gamma notional Let's move on now To Taking look at how market makers were positioned on the gamma curve at the beginning of the day So what that's is showing is gamma notional position their position on the gamma curve that I just showed for the sv 500 nasdaq and also 2000 note for the sv 500 and nasdaq All these numbers are positive in a positive gamma environment again market makers position on the gamma curve is positive This means that traders are short calls market makers are long calls And they have to trade against price to hedge to their delta exposure And that's typical of a positive gamma environment and note all these numbers did shift lower from Friday so became for the sv 500 and nasdaq less positive and then shifted more negative for rut and slightly Less negative for the IWM or let's move on to some setups now All right popin Popin I death I'm pronouncing that correctly says he does he or she does zero DTE SPX and spy What add-on do you need? All right, so let's take a look at SP 500 I'm going to look at what opt-in traders are doing first then we'll take a look at the ES chart and book map so I'm going to move on now from positional analysis to Talking about some setups. So my thesis for the day. First of all was looking for Lower volatility the lower trading range more of a range day mean reverting price action based on the shifts and levels my directional bias was bullish and We'll see in just a minute that the options trades Did not really support that thesis Really after the the first hour and order flow did not support that thesis as well. All right, so this is the Everything that we've looked at so far other than book map is based on static data the levels on the chart this the spot gamma levels also the Gamma model gamma notional all based on data that's updated once a day sometime overnight Available in the morning. I used that in my morning preparation now. We'll move on to the execution part of my process looking at live data live price action live Options trades, so I'm going to start with options trades going to see what options traders are doing today so this is the hero signal in Spot gamma available to spot gamma subscribers What this chart is showing is? options trades and market maker hedging activity for a combined signal of SPX spy XSP and ES futures Spot gamma takes options trades market maker hedging activity for all those instruments and Then shows it on this chart The white line is showing price for SPX and The purple line is showing the hero signal again hedging impact real-time options and a falling hero signal indicates traders are taking Negative delta positions that means they are buying puts and or selling calls Market makers would take the opposite side of that And they have to sell ES futures to hedge their delta exposure When the hero signal is rising this indicates market makers or traders are taking positive delta positions They are buying calls and or selling puts market makers to take the opposite side of those trades And they buy futures to hedge their delta exposure All right, let's zoom in on this chart and I'm going to take a look at this chart and a little bit more detail I'm going to separate out what traders have been doing with puts and calls There's a bug in this chart. I'm going to zoom over to one chart go back to the SP 500 That should prevent that problem So first thing we note that traders are buying calls today that shown by the rising orange line mostly From the cash open then that activity as SPX Was near the the high for the day or actually moving down. Anyway, they took the foot off the gas So call buyers Very active aggressive in the morning took their foot off the gas and The falling blue line indicates traders have been buying puts These lines are shown in terms of delta Rising orange line positive notion of value traders are buying calls Falling blue line negative notion of value. They're buying puts and it's almost even All right, let's zoom in on the on the morning here And we'll take a look at a setup and I'm going to look at a short setup from around 10 30 Traders buying calls in the morning Take the foot off the gas for just a moment then start buying calls again, then right around 10 30 They start selling calls and then note around 10 40 they start buying puts buying puts selling puts start buying puts again So notice right after 10 40 both lines are moving in the same direction. They're moving down That's a very Strong directional signal it would be stronger if the orange line was sloping down a little bit more But in the case Traders at this point are selling calls and buying puts That's a bearish bearish signal. So let's go take a look at book map now and see what was happening At that time Let's go back to ES and we'll watch order flow and book map here Just this chart a little bit All right note during the morning first thing EOS was making a series of lower highs and finding support around the ES 5100 and the spy 508 level and Then remember around 1040 both the orange line and blue line started moving the same direction down and this made From the way I look at it a good entry point Right around 508 and 5100 for a short and a pretty quick 10 move a 10 point move down To the spy 507 put wall volatility trigger that at this point did its job acting as support Know during this time The following blue line dark blue line indicates That CVD is falling that's cumulative volume Delta All right, so there's the short set up and there were some large traders selling with iceberg orders That's shown by the falling light blue line Looks like that's the on-chart indicator and note also during this time the falling yellow line Especially after 1045 Indicates that sell stop orders with fueling the move lower Also shown by the on-chart indicator All right, so that's the short set up in the SME 500. We'll get to the take a look at the live market So this is what I was looking at this morning. So pretty bearish order flow all day here in the SME 500 All right, let's move on to NASDAQ NASDAQ more bullish in the morning Let's see what options traders were doing So for NASDAQ I take typically look at this Mag7 signal, let me zoom out so I can show what this is So this is another combined signal Showing options trades a market maker hedging activity for a combined signal of the stocks known as the magnificent seven Apple Amazon Google Meta Microsoft and video Tesla All right, let's zoom back in on this chart And as you all know these stocks make up a very large component of both the NASDAQ 100 and the SME 500, but especially the NASDAQ 100 Again, I have puts and calls separated here. This provides a little bit more clarity So first thing we notice on this chart right around 955 Traders start selling puts so the put line was Slightly down for the day and 955 traders started selling puts that's bullish then just after 10 they started buying calls So just after 10 maybe 10.05 Both lines moving the same direction up that's bullish Let's go take a look at book map take a look at NQ zoom in All right, here's This is 10 a.m. Eastern time You can see all of the Aggressive buyers coming in these are volume dots and bookbath Green volume dots show more buyers than sellers Magenta dots indicate more sellers than buyers So we can see just after 10 a.m. When the call line started moving up on the mag 7 stocks Aggressive buyers came in to NASDAQ There was a pullback to this QQQ for 37 level and V WAP just below that good entry point for a long and good for About 40 points or so up to the QQQ for 38 level Then a couple retest of the 437 level So folks, this is just a round number level and QQQ, but it's This is where Traders want to trade So again, just a round number and QQQ Acting as support multiple times all right, so that was the long setup in In NASDAQ again long entry right around 1015 and then Between 11 and 1130 a couple more long entries From 437 up to 438 and beyond. All right, let's go back to hero See what was happening with hero around those pullbacks to 11 1125 Here this shows a trader start aggressively buying calls again around 1130 and They start selling puts as well again starting around 1130 both the call line and Put line moving higher in the same direction very bullish signal bookman 437 continuing to act as support 438 resistance Along with the 18,000 level or let's take a look at some stocks for stock. I want to take a look at his AMD Let's see what options traders are doing Go to AMD No 180 is the call wall, but that's the key gamma strike. Sorry When they does the key gamma strike Let's see about on this All right, so right out of the gate this morning traders were selling calls flow alert comes in Just before 940 a couple of big trades after that and AMD drops lower don't have the Right around 945. So this is happening pretty quickly Call sellers take their foot off the gas then they start selling puts and Price consolidates and moves higher. Let's go back to book map There's the quick move lower in the oh in the morning Great entry point for a short here Right around 179 and VWAP Showing by this line just below Aggressive sellers come in shown by the magenta volume dots and that's good for about a forward point move lower in AMD Price reversed Just below the 180 key gamma strike No, doll the liquidity at that level That is shown by the heat map and book map showing history the limit orders in the order book iceberg ESH for CME by 384 above price those are limit sell orders Typically for stock they come in at the cash open stay in the market Any order book until they're filled All right next stock and video Quick drop at the open About 20 points. Let's see what options traders were doing Let's zoom in on this Just like AMD traders were aggressively Selling calls Then they started buying puts also So starting just around 940 Little bit before blue line orange line moving the same direction very bearish signal Price drops quick drop Traders stop selling calls Start selling puts just like AMD Price moves higher note that 800 is the call wall the key gamma strike There's the 800 level So this happened pretty quickly this morning. That's right Getting to grab that tool So this move lower happened pretty quickly But if you were fast caught this quickly short entry at 805 Seconded second entry secondary entry at the 800 call wall key gamma strike Good for 15 points down to 785 All right the next stock. I want to take a look at is Tesla So we looked at two bearish setups Tesla just the opposite today Very bullish note all the green volume dots a lot of aggressive buyers coming in Again the volume dot showing market buy minus sell Let's see what options traders are doing. Let's go to Tesla and they were buying calls No, two 200 is the call wall key gamma strike When traders buy calls market maker sell the calls and they have to buy stock to hedge their delta exposure 200 level Acting as resistance call buyers Note there was a flow alert right at the open. I'll zoom in on just a minute so we can see that call buyers Start to take the foot off the gas about 1145 at the 200 call wall and Price consolidates Note how flat the blue line is they have been selling puts but that number is Very small compared iceberg ESH for CME cell 315 Sorry about that. So the notional value for puts 37 million versus calls 432 million So in order of magnitude difference. All right, let's go take a look at book ma'am. Here's the 200 call wall Note the liquidity at that level Limit sell orders options traders take the foot off the gas Price consolidating now moving lower a little bit lower hero Right so again, this is very this is a very typical pattern Except they took it a little bit longer Up until around noon up to the 200 call wall key gamma strike took their foot off the gas So that fuel that was driving Tesla higher has been shut off All right, let's go back the SB 500. Does anyone have any stocks? They want me to take a look at All right, Faro says I'm seeing huge differential between calls and put prices Do you look it up? for are you for what? What instrument are you talking about Tesla? Yeah, so we can take a look at that We can take a look at this volatility skew. Let's go to Tesla Let's see if they're if that's right All right, so what this chart is showing is implied volatility on the Vertical axis Strike price on the horizontal axis Typically, we'll take a look at the SB 500 in just a minute and there will be some differences in this chart This rising line here so When there's a demand for calls Price just like everything else Price increases implied volatility increases and this is an indication of that. This is for Tesla showing that Calls out of the money calls are expensive Implied volatility is increasing. This is a sign of demand for calls Alright, let's take a look at See if we can find SPX Alright, so this is SPX. This is very typical for the SP 500 This is showing puts queue. This is very typical Invest and institutional traders use SPX to hedge their delta exposures All right, so Faro here is SPX showing just Really a very different skew put skew for SPX very typical high demand for puts And again that large traders institutional traders used to hedge their delta exposure We can take a look at Nvidia showing again Some call skew not as pronounced as Tesla. Let's see what they're doing in the mag 7 stocks So right now both calls and puts are Moving slightly lower Take a look at SP 500 Now it looks like the put number is starting to dominate. Let's change to the total signal here There's that bug Go back All right, does anyone have any stocks they want me to take a look at please let me know I'll be glad to do that and so far the day for the day. Yes Basically making a series of lower highs and then testing the volatility trigger levels Let's just watch this See if there's a reaction at the spy 507 level see if that level acts as resistance now See they're just looking at your question again Just to note that spot gamma focus is on the volatility trigger level not the zero gamma level Although the zero gamma level can act as support and resistance I think according to spot gamma the volatility trigger is more important All right, so we're watching for any reaction at the 507 level. Let's see what options traders are doing and it just to note when When I'm trading I have multiple screens, so I don't have to jump back and forth between one screen So now it looks like options traders are Taking positive Delta positions heroes making a series of higher lows Clean up this line a little bit Extended out to the right so far mostly green volume dots Also some by-stop orders fueling this move was not large Let's check options traders again flow alert could indicate a potential reversal often these Flow alerts are mean reverting signals Now some aggressive sellers are starting to come in. Let's do a quick check of Nasdaq So in queue back up at the QQQ 438 level Let's go check hero again Right now hero leveling off for the SB 500 check bag 7 SB 500 all right flow alert Signal levels off You know aggressive sellers start to come in and hello and a rag welcome glad you're here Says thank you for sharing your analysis Analysis with us. You're a great trader. Have a wonderful rest of the day. Same to you Let's check Nasdaq. See how it's doing at that NQ is doing a 438 level back and check hero And now hero moving up again for the SB 500 as well as the mag 7 All right, Faro asks. What's the darker liquidity on ES? above on ES Do you mean 5108? All right, sorry. I don't see any so anyway. I Liquidity on the order book that show me the heat map in and book map This indicates above price limit sell orders and This darker shading indicates there are more limit sell orders at that level These are limit buy orders down just below the SB X 50 70 level. All right, so it looks like this is going to move higher above the 507 level breaking above that level as well as the other trend line Maybe up to VWAP All right rainy days. You're welcome Says this is very helpful. I've been using spot gamma for a few months But I've recently started you looking at book map great so you've got the got the right tools that's that's what I use book map and Spot gamma. All right, let's go back to All right, Faro, I don't see anything at 50108 Are you talking about 50 SPX 50108? So there's nothing up here. I'm not showing that am I? Keep map here 50108. I don't see anything right so So far it looks like ES is broken out above that 507 level above the trend line as the hero signal shifted higher traders Taking positive delta positioned All right, my time is up. I want to wrap it up. I'm gonna wrap it up. All right 5099 Is what Piero is asking about? Let's just limit sell orders. You can see the The larger numbers here in the order book and this just shows a history of the limit orders So these limit orders Came in just after one They were pulled just after 130 Came in again Just before two and they're still on the order book. All right, everyone. Thank you very much for watching Thanks for your questions to comments. Remember tomorrow durable goods orders at 8 30 a.m. Eastern time consumer confidence at 10 and We'll talk about it tomorrow. All right, thanks everyone. Thanks for your questions to comments and I will see you tomorrow. Bye