 And I'm waiting for YouTube to catch up so far. It looks like I may be having the same problem as yesterday All right, hold on just a moment. Let me Let me send a quick quick message to come all then I'll get started All right, I'm going to go ahead and get started. Welcome everyone. Welcome to options with Doug streaming live daily on bookmap discord and Sometimes on the bookmap YouTube channel 1.30 p.m. Eastern Time before I go any further. Let me go through the disclosures all bookmap limited materials information and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations risk disclosure trading futures equities and options involves substantial risk of loss and is not suitable for all investors Past performance is not necessarily indicative of future results And let me check I've got a message from Kamal's Okay, he says I am live Okay, great. All right, so that appears to be working and let me just check Okay, Kamal's and indicates I'm live. I'm not seeing it, but I'll assume that is the case okay as a reminder My presentation and the options with Doug Chatroom in Discord is focused on 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 that is based on positional analysis And I look at how traders and market makers are positioned in the options market and how those positions Changed from day to day to help develop a thesis for the day regarding expected range and volatility as well as a directional bias and The second step in 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 to find and execute setups and on topic questions and comments are welcome and that That applies to during this presentation as well as any other time and the options with Doug chatroom. Please keep your questions and comments on These topics options order flow the impact of options markets on stocks and futures and the influence of market maker hedging flow on price action So again on topic questions and comments are very welcome Okay Got that out of the way and Let's take a look Take a look at the live market now while I go over my agenda So today what I want to talk about is first of all data And I mentioned this yesterday. I'll go over it today and there There is an important announcement Data coming out at 2 p.m. Eastern Time and that is today. That is the FOMC minutes so That is today and there was some data this morning the ISM PMI and Again, the FOMC minutes come out at 2 p.m. And that has been a big market mover Recently, so we'll watch the live market at that time and then tomorrow there's jobless claims and More PMI data out at 945 a.m. Eastern Time and then Friday is the next big Data drop and that is the employment situation at 8 30 a.m. Eastern Time and That is often a big market mover as well. And then the ISM PMI data out of 10 10 a.m. So That's the data again. We will we'll watch the live market at 10 a at 2 p.m. So Today, this is the ES the support and resistance levels that they're in play today are shown on the chart and What I'm showing on my chart is I have two columns for levels and the first is the SG. That's the spot gamma cloud nodes levels and those Show Levels that are for the SPX. So that is SPX 3850 converted to an equivalent ES price. So right now spot gamma is adding 25 points to SPX to come up with an equivalent ES level and also the Spot gamma notes also show combined levels combo levels that combine SPX and spy levels those numbers are converted to an equivalent SPX number and then equivalent converted to an equivalent ES number for the cloud notes here and The second column. This is my column and this is these are my cloud notes and I'm showing the Important spy levels and also The support and resistance levels that are noted in the spot gamma a.m. Founders note so the important thing to note here is First of all the test of the 380 Actually that is the 380 key gamma strike It was the put wall yesterday and today the put wall drop down to 370 I believe I Had some technical difficulties again today and This information was not available at the time I was trying to Record this data and update my spreadsheets. So 380 is the key gamma strike and that's still a significant level and I checked a spy chart and the low was exactly 380 so spy tested that level to the tick and moved higher and that was just after 10 a.m. And It looks like the next target up above for this trend is the ES 3900 level and also it looks like ES has spent quite a bit of time here at the volatility trigger level and that is the SPX 3840 Shown here is the equivalent ES is 3865 and it looks like there was a nice retest here of the L3 3850 level Again, that's an SPX level Okay, so those are the supported resistance levels that are in play today. Let's just zoom a little bit and see if there's anything above and Not really until the SPX 3900 level at ES 3925 But there's quite a bit of liquidity here at 3900 ES 3900 and 3910 in the way of that that target But if if price moves today With the FOMC minutes that SPX 3900 level Could certainly be in play Okay shifts in levels and There was let's go back I'm gonna look at equity hub today to see that there was some very strange information with With spy that just doesn't make sense, so I'm going to Ignore this for now and what I'm talking about is This data right here so if you recall spy actually closed lower yesterday and it makes absolutely no sense for the put wall call wall and Absolute gamma strike to increase like this When spy was down the previous day, so there must be some bad data somewhere, so I'm going to Going to ignore that so let's take a look now at equity hub Which is showing different data and this is a A good way to look at all the levels anyway So let's start with SPX The only shift in level so what I'm looking at This is the five-day history For the key daily levels So this is what I'm looking at Let me let me redraw that So that this is the key gamma strike The hedge wall or the volatility trigger. It's called the hedge wall in equity hub, but for the index products. It's actually the volatility trigger So that's the only change a slight drop down of the volatility trigger from 38 55 to 3840 and that is this number right here So that's it SPX still put dominated and that's shown by the blue line here the put gamma Being significantly lower than the orange line, which is called gamma So that's that's SPX minor shift in the volatility trigger and Here's spy and I'm assuming these are the correct numbers so again what I'm looking at here This is from yesterday To that to today and actually doesn't it's showing 102 I Think that may have to do with a holiday So the key gamma strike remains at 380 and I forgot to To make my cursor larger. Give me just a moment to do that Okay, so this should be easier to see so the Key gamma strike remains at 380 and the volatility trigger has dropped from 386 to 380 The call wall has dropped from 390 To 383 And then the put wall Has dropped also from 380 to 370 if this data is correct and I'm assuming that it is It looks more Looks more reasonable than the data that's shown in the founder's note. Okay, let me let me check for questions on YouTube Let's see if I can okay. I'm not seeing anything on YouTube, but apparently According to Kamal's it is working. So I'm sorry. I can't see any Any questions and comments in in YouTube chat. Let me just try and refresh that and Still nothing so sorry about that. I can only see chat in bookmap discord Okay, so You know also note that spy is still very put dominated put gamma is much Much larger than call gamma and finally let's take a look at qqq Also put dominated Key gamma strike remains the same There's a drop lower in the volatility trigger and a slight drop in the call wall All right, let's go take a look at the data again I'm again. I'm going to ignore the the data for spy So I'm just going to look at SPX here and this is gamma notional. This is something that I look at every day and I see hold on a second. I've got a message from Kamal's Okay, so he says it is working Again, sorry if you're if you're watching on YouTube I can't see the chat so I apologize Hopefully I'll get that worked out by tomorrow Okay, so gamma notional and this is showing market makers position On the gamma curve and this indicates that market makers position is negative And that means that traders are long puts Market makers are short puts and they have to sell futures to hedge their delta exposure as price drops and When price increases they can buy back those short features so in a negative gamma environment They're trading in the direction of price and that tends to increase volatility and that's a characteristic of Of a negative gamma environment and Regarding the spy gamma notional Yesterday it was minus 1292 and again I this number of positive six I don't understand that so it was my guess is it would have been more negative than yesterday given the Given the increase in VIX yesterday as well as the drop in spy and also given the You know the heavy put dominance that was showing an equity hub so The SPX gamma notional yesterday was minus 366 and it has shifted to minus 496 today So it has become more negative Okay, and Let's take a look at The Vanna charts now What actually let's take a look at the we'll take a look at the S&P 500 charts and the Vanna charts So first of all the S&P 500 again, I'm going to ignore spy. It just doesn't make any sense So these are the absolute gamma levels for for SPX and recall the Put wall is at 3700 and that is the strike and that is the strike with the largest net negative gamma position and It can often act as support, but it's pretty far down based on the current price and looking at today these levels the 3750 and the 3800 Would be expected to act as support before price gets down to 3700 That may be a longer term move and it could be initiated Today with the Fed minutes the FOMC minutes, so we'll we'll see in just a few minutes when that data comes out so You know key put gamma levels 3850 and that is a resistance level today It was noted as a resistance level and price is trading above that level now and there's 3900 and then 4,000 remains the key gamma strike and that is the strike with the highest absolute absolute gamma positive and negative and Also the it's also the call wall and that is the strike with the largest net positive gamma and Vanna charts and we'll stick with SPX here and this is showing How market makers delta notional or delta exposure? Changes with changes in price and implied volatility and that's shown by the green curve and the way to interpret this is Just draw a line through this green curve that's usually parallel to the black line and that Indicates again that market makers delta exposure increases as price drops and they have to sell futures To hedge their delta exposure as price drops and then the black line shows how their Vanna Delta Notional Delta exposure Changes with as time passes so the green line shows the Vanna effect and the black line shows the charm effect and Samerson asked what when that becomes more negative. Can we draw any conclusions with the information? with that information other than selling futures as price moves lower and As gamma notional becomes more negative. I would expect market makers to have to hedge Their delta exposure more aggressively So that would be that would be my expectation Okay, so that's the positional analysis and Let's let's take a look at some setups and first of all I'm going to go to So I'm going to go to a spot gamma hero and let's take a look at ES and We've got about five or six minutes before Before the FOMC minutes are released Back to total. So what I saw this morning was a great divergent setup I'm going to zoom in on this event and this is the divergent setup Showing hero rising and let's go back. Let's separate that out again Into puts and calls So traders were both buying calls and selling puts as price decreased and remember the the test to the tick of the 380 spy 380 key gamma strike and Then price reverse reverses higher and that is really just a classic Hero kickoff setup Hero rising price continues to fall and then reverses higher at a key strike a key gamma strike Round number or a level with a high liquidity or it could be all So let's go take a look at Book map again leave that like that So again, here's the reversal at the 380 that's showing that it's the put wall But it's actually the key gamma strike and notice how In this case well that part of the part of the kickoff strategy is some other players come on the field and Move price higher move the ball higher And this is showing that at this point. This is when Aggressive traders see all the green dots here and CVD rising That's the pink to dark blue line showing that aggressive traders are coming in and Then the yellow line shows by stop orders. So when price touches that level and options again remember that options traders were in the market buying calls and selling puts before this happened and then at the reversal the buy stops start firing and Thanks trader HE. Yeah, we're waiting on that will and we're going to be watching the The ES here With the minutes are released Okay, so a great hero kickoff setup and this was the best best setup of the day There were a lot of there was a lot of correlation between some of the stocks that I follow and Options trades and then a couple of divergent setups But again, this was the best setup it was Telegraphed well in advance Let me just I'm going to take a quick look at spy and show you that I am having the Same issue as yesterday. No No data in the Current order book Nothing in the heat map. So I'm pretty limited with stocks today in in book map So I'm still trying to get that resolved book map support is working on it and I'm trying to figure it out also Okay, so we've And again, this shows the reversal right at the 380 level and again that is the Key gamma strike not the football. All right, let's go back to ES and we'll wait on the data and Let's just open up. I'm going to close this Actually, I'm going to open it up again. We'll watch the hedging flow is as this comes out and Let's open up Open up financial juice here and we'll see if we can get any Any commentary or any report of what's in the in the minutes? Okay, I've got 2 p.m. And we'll watch this and Let me know if anybody has any questions or comments I'm going to zoom in a bit Take a closer look at this and remember with a sharp move higher both The ES 3900 level and the SPX 3900 level Are potentially in play and let's take a look at hero and see what options traders are doing and I'm going to go to a Shorter look back period. Let's shift that to 30 minutes. Actually, let's shift that to maybe 10 minutes, right so so far this is showing Bullish options trades shift that to five minutes That's as That's as small as I want to go Let's go back to book map Well, now we may need to look at the 3800 level Being potentially in play zoom down So that is a support level and then also recall the 380 key gamma strike was in play as well Let me just update that so it's not confusing. Okay. I changed my notes. So that is now Should be shown as the Key gamma strike rather than the put wall Okay, folks, let me know what you want to see I can go over some setups or we can continue to watch. Yes Let me know if there are any preferences All right, I'm gonna watch this for another Let's say five minutes up until about two ten and then we'll take a look at some some setups from this morning And let's go back and take a look at hero and see what options traders are doing and they continue to take bullish options trades Remember we're on a five minute look back period. So this is very fast look back period and Traders of both selling puts and buying calls and it looks like they were doing that just before price tested the Volatility trigger level and just below and for those on YouTube Apologies, I'm still not seeing the stream or chat So I can't respond to your questions and comments again, I apologize I'm having some difficult some technical difficulties So I'm a little bit here. So the light blue line that shows that Traders were large traders were buying with iceberg orders as price dropped by stop orders that show them by the yellow line are going off now and Go back to hero and options traders were selling puts and buying calls and it looks like the Looks like they continue to sell puts and buy calls Okay, I'm gonna Probably wait about another minute and then I'll go through some setups and let's go back to hero now book map So now it looks like price is making Made a lower high here and Maybe moving lower But the data came out less than 10 minutes ago. So you never know. All right, let's take a look at some setups so the first thing First stock that I want to take a look at is Amazon and again, I I'm having technical difficulties with DX feed so I have nothing in the current order book or the heat map and All I'm showing is best bid and offer So let's go look at hero now and I'm going to change this back to my default Which is total and a one-day look back period And we'll go and we'll get back to yes in a few minutes So Amazon and what I saw this morning was a divergent setup with hero rising and Then price followed a few minutes later It looks like almost You know 15 to 30 minutes depending on you how you're looking this so a nice divergence Set up bullish Divergent setup in Amazon and let's go back and look at book map and the reversal was around the 8350 level Again, I can't show much in order flow to Show an indication of reversal. So I'm sorry about that Right the next one we looked at ES already and that was the best I thought the best setup of the morning that you know the clear divergence that I showed Earlier and that would apply to spy as well. So You know, there are a number of ways to take that trade by futures by spy shares by spy calls sell puts by SPX calls sell SPX puts I Would have worked and the next is Metta and let's go take a look at hero and there's a strong correlation between options trades market maker hedging activity and Price action in meta and it looks like calls were driving. So as traders started buying calls That's when price started to increase and I'm looking at the orange line a rising orange line means that traders are buying calls Let's go back to book map and the reversal happened right at the 126 level so nice divergence or nice correlation confirmation Set up with meta the next one was Moderna. Let's go to hero Moderna and there was a strong confirmation for the move lower and I didn't see any clear advantage of Necessarily separate separating out calls and puts it looks like puts of might have might have been driving more So traders were selling calls and as they stopped As they stopped selling calls They continued to to buy puts Moving price lower until about 10 20 10 30 Let's go back and take a look at book map and This is the move lower that that was driven by options trading a market maker hedging activity and the next one was Microsoft Let's take a look at hero Microsoft and notice the weak signal here. This is the hero signal showing the strength of the hero signal in the last 30 days and that's shown by the The entire length of this slider here and it shaded light gray and Then the colored portion shows the strength of the signal in the last five days and notice the weakness for Metta Actually, that's Google meta Moderna and Microsoft All right, so let's take a look at Microsoft now and there's a strong correlation both up and down between options trades market maker hedging activity and price action. So this was a More of a confirmation set up with calls. So traders were selling calls Initially in the morning until about 10 15 to 10 30 and that was driving price lower And then they stopped and started buying calls and Price started to increase after that All right, let's go take a look at book map there's Microsoft and Again, the looks like the best setup was here in the morning with a price drop down until about 1015 to 1030 As traders were selling calls next one is Netflix Let's go take a look at hero and notice the strong signal with Netflix Hero signal is the strongest that it has been in the last 30 days and stronger than it has been in the last five days and as usual for Netflix, there's a strong correlation between options trades market maker hedging activity and options trades and price action and it looks like Call buyers are driving the move higher or we're driving the move move higher after After about 10 15 So I've mentioned this before as a stock trader. This is what you want to look for if you're looking for a long entry You want to look for call buyers and That the way that works is when traders buy calls Market makers are selling the calls and they have to buy stock to hedge their delta exposure and as price keeps increasing They have to continue to To buy stock to hedge their delta exposure and this can create a feedback loop That's that's great for great for traders So this if you're looking for a long entry, this is what you want to look for is traders buying calls and That was probably the best stock set up of the day and the next one is Nvidia It looks like in the morning traders were Selling calls and that was helping to dry price lower and then they started selling puts and The total line makes this more clear the strong correlation Between hedging activity and price action. Let's go take a look at book map There's Nvidia So again in vid Nvidia good short and long setups today following hero QQ take a look at hero strong correlation again between Options trades hedging activity and price action and especially with the reversal hire around 1015 call driven Traders started buying calls. So this is really kind of a small Divergent setup here traders started buying calls and price reversed higher at Looks like around just below 263 and then price moved higher Let's take a look at book map again and There's the reversal hire at 263 unfortunately, I can't see any order flow nothing in the heat map no liquidity No change in volume dots To Confirm that reversal hire look at spy and this is going to be the same as ES With just a lot more information and ES We'll take a look at Tesla and then we'll go back to to ES and see see what's happening there So Teflon Tesla is definitely bullish today and I saw a call divergent setup earlier So let's go take a look at at Tesla let's zoom in and This is what I saw and So initially first thing in the morning traders are buying calls and price increases and Then price drops, but at the same time traders Really don't they sell a few calls, but they continue to buy calls and then price reverses hire Just before 1010. So this was the This was the entry point for that divergent setup hire and To see this in Tesla is pretty rare usually there there's a very strong correlation between Options trades market maker hedging activity and and price action in Tesla So nice divergent setup there in Tesla Let's change that back to the total and go take a look at book map again and there's the there's the long setup and that looks like right at the Lower edge of the expected move, which is something that I track every Every week that is the weekly Lower edge the expected move and I get that information from thinkorswim and just market in my sea levels spreadsheet so interesting how price reversed and that's a One standard deviation move for the week based on the options market So that what that is what the options market was pricing in for this week Lower edge of the expected move just below just above 108 All right. Let's go take a look at the yes. We've got four or five minutes left and it looks like prices moving lower Let's go back and check hero now and let's just take a quick look at spy. Let's go Let's go to a shorter rolling window here. Let's stick with ten minutes So this shows that traders Starting at around 206 started taking bearish options trades So it took a little bit a little bit of time for this to play out and his price increased this would have been a Good setup. So it looks like price makes made a slightly higher high as hero made a Lower high and there would have been a good short setup and let's go take a look At book map again, we'll stick with the yes and note the time. That's about 14 18 14 20 So here is the Here's the short setup So price made a slightly Higher high as hero was trending down and it looks like larger traders was selling with iceberg orders at the same time and then the aggressive Sellers start coming in with the pink dots there with their market orders selling and then prices dropping down Now down to the ES 3850 level and potentially next stop down would be the 380 spy 380 key gamma strike Let's go take a look at a hero one more time Yeah, now now it looks like they're Maybe either taking profits or taking At any rate bullish bullish options trades zoom in just a bit So nice short set up here as hero was dropping and price made a slightly higher high Oops, I think I have my microphone down. So again nice setup here hero dropping With price making a slightly Higher high and there's your short short setup at around 14 20 as the Aggressive sellers start to come in shown with the green pink dots in bookmap So my time is up Let me know if you have any questions or comments and sorry about these technical issues. I Hope to get this resolved by tomorrow so again Let me know if you have any questions and comments and I'm gonna wrap it up at this point. Thanks for watching Thanks for your questions and comments and I will see you tomorrow. Thanks again. Bye