 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. Hello Hector, glad you're here. Before I get started, I need to go through the Disclosures. General disclosure, all Bookmap limited materials, information, and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations. Risk disclosure, trading futures, equities, and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. And apologies in advance, I have either a bad cold or really bad seasonal allergies today, and I may have to pause from time to time, and also my voice is not quite right. So again, apologies in advance. The focus of my presentation and the focus of the Options-Doug chat channel and 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. 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 a directional bias. And the second step of my process is execution. And I look at real-time order flow in Bookmap and real-time market maker hedging flow in SpotGamma Hero to confirm my thesis and for setups for entries and exits. And just to be clear, when I talk about setups, I will be talking about an underlying asset. And setups can be taken any number of ways with shares, futures, or options. And again, the basis of my analysis is the options market, and I will be talking about setups and underlines that can be taken any number of ways. And questions and comments are welcome, and I will be watching the options-dug chat channel and Discord and the chat and YouTube for your questions and comments. All right, let's get started. My agenda for the day, first of all, go over news items for today, as well as the rest of the week. Then I'll talk about my positional analysis, and then I'll go over some setups. And I'm going to try and go as quickly as possible here. There were some really interesting setups today. Today was in sharp contrast to the kind of the lackluster, very narrow trading range yesterday. It was all a day trader could hope for today. All right, so today let's start with news items. And of course, the prime event for the day was the CPI data that came out at 8.30 a.m. Eastern time. And initially, the market had a very bullish positive reaction to it. And most of the data was in line with forecast, and it looks like this year over year number, and this big block here was slightly less than forecast and previous. Anyway, the market traders liked what they saw and took the market higher. And then tomorrow, PPI data comes out at 8.30 a.m. Eastern time. And then finally on Friday, consumer sentiment at 10 a.m. Eastern time. All right, let's get started. Let's go through positional analysis now. And this is the S&P 500 in bookmap. And before I take a closer look at this chart, I'm going to take a look at a larger time frame. This is SPX. And this is showing a one-hour chart since the beginning of April, and showing that SPX has been trading in a fairly narrow range today, for the really since the beginning of April. All right, so let me point out some of the key levels that are in play. Again, this is SPX, one-hour chart, and thinkorswim. And first of all, to point out, I have the lower and upper edge of the expected move for the week that's shown by the dash purple line, and then the lower and upper edge of the expected move the day. And note that level did act as resistance today, and we'll see that more closely on a one-day one-minute chart. So there were some spot gamma levels that I want to point out. First of all, here's the put wall. This is the SPX put wall at 3,900. That's the strike with the largest net negative gamma, and that can be expected to act as support. Here's 4,000. That is the absolute gamma strike, the strike with the largest absolute gamma. And here's the volatility trigger at 4,110. And that is spot gamma's proprietary gamma flip level. Below that level, like SPX is trading now, market makers position on the gamma curve is negative. And in a negative gamma environment, they have to trade with price to hedge their delta exposure, and that tends to enhance or increase volatility. And in a positive gamma environment, on the other hand, above that level, market makers position on the gamma curve is positive, and they have to trade against price to hedge their delta exposure, and that tends to subdue volatility. And then finally, here's the call wall at 4,200. That's the strike with the largest net positive gamma, and that can be expected to act as resistance. All right, before I get to book map, let's take a look at another think or swim chart. This is a one-day one-minute chart showing the levels that are in play for today. So first of all, here's the resistance right at the open, at the upper edge, the expected move for the day, and also the 4,150 level. SPX 4,150 noted as resistance in the spot gamma AM founder's note, and then there's the volatility trigger at 4,110. And that was noted as support, as well as the 4,100 level. And that may be a level of support now. So we'll keep an eye on SPX to see how it reacts at that level. All right, let's take a look at book map now. And I've got the same levels on my chart. First of all, this is the spot gamma cloud notes. Spot gamma provides these levels to spot gamma subscribers for a variety of platforms. We just saw think or swim, and here they are. Same levels for book map in the form of cloud notes that are updated automatically. And spot gamma, these are SPX levels, and there's about a spot gamma using a 15 point difference between ES and SPX. And I calculated that difference at 14 points. So you really can't see it here. But there's that the 4,150 level is shown pretty much at the same level as the SPI 4,14 level. There's some other levels in place. So again, remember the SPX upper edge of the expected move for the day did act as resistance, also this 4,150 level. And then here's the SPI level. I'm not actually this is this is correct. So SPI 4,12. And that is also the SPX 4,130 resistance level. So those levels were noted as resistance in the spot gamma AM founders note. And here's the SPI absolute gamma strike. So now there's the volatility trigger for SPI. So the S&P 500 is trading both below the SPX volatility trigger and the SPI volatility trigger. And now testing the SPX 4,100 level shown here. So those are the primary levels that are in play for today. And we'll talk about setups in a few minutes. So that's the SPX the levels that are in play. Now let's take a look at the NASDAQ. So here's the NASDAQ futures in queue showing the the sharp move higher right after the CPI report and resistance primarily at the QQQ 325 call wall. It took a while it acted as resistance several times but finally price move lower. And this is also the upper edge of the expected move for the day for NQ. All right so now NQ is trading down toward the 13,200 large gamma 3 level. All right let's take a look at a QQQ chart. Back to thinkorswim. This is QQQ and note the kind of I guess head and shoulders top here right around the 325 call wall that did act as resistance today. And now NQ QQQ is trading down to the 322 large gamma 1 level. And that level 322 has been important it was in play yesterday. All right so those are the levels. And now let's talk about shifts in levels. And while I'm doing that I'm going to go take a look at the absolute gamma levels. So we'll see where these levels come from. So first of all this is for SPX. And for SPX what this is showing is positive gamma or call gamma shown with the orange bars and blue. The blue bars are showing negative gamma or put gamma. These are market makers positions at these strikes. Call gamma, positive gamma above with the orange bars and negative gamma or put gamma below with the blue bars. So there's the 4000. That is the absolute gamma strike. No change there. And then the put wall did shift lower. And that is it now at 3900 it shift lower from 4000 yesterday. And then the call wall the strike with the largest absolute positive gamma remains at 4200. And then the volatility trigger did move slightly higher for SPX. It is now at 4110. And we saw that in the bigger swim chart and the book map chart. Let's take a look at SPI. And pardon me just a moment. Okay so let's take a look at the gamma levels for SPI now. And for SPI there were some shifts in levels. I'm going to zoom in on this chart. So first of all the absolute gamma strike for SPI did drop from 412 yesterday to 410 today. So there's the absolute gamma strike. The strike with the largest absolute gamma. And the put wall remains at 400. The strike with the largest net negative gamma. And then the call wall actually moved higher from 416 yesterday to 420. So there's the ceiling and the floor for SPI. And then the volatility trigger did shift slightly lower from 412 yesterday to 411. Right I'm going to do a screen refresh here so we can take a look at NDX and QQQ. All right so let's go to NDX. And there's the 12975 strike. And that is the call wall and the absolute gamma strike. And there were no shifts in levels for NDX. Now let's take a look at QQQ. I'm going to zoom in on this. And one thing I want to point out is there is a difference in the call wall level shown in the spot gamma AM founders note. It's shown at 325 and an equity hub. It's shown at 330. And I checked the and I thought I thought spot gamma had resolved that issue. But I'm for NDX products and I'll show you the numbers I'm looking at in just a minute. I'm using the the numbers shown in the AM founders note. And also in the kind of the homepage of the dashboard. So what I'm talking about let's let's go through the levels for QQQ. So first of all QQQ 320 is the absolute gamma strike. No change there. And then the call wall is at 325 according to the according to the numbers that we'll look at in just a minute. And then equity hub is showing it at 330. So I did the calculation the basically the orange number minus the blue number. And this is actually the call wall the strike with the largest absolute pot get positive gamma at 325. And that level did shift lower from the numbers that I look at from 330 yesterday to 325 today. And then the put wall shifted higher from 310 yesterday to 315 today. That's the strike with largest net negative gamma. And then finally the volatility trigger moved lower today to 321 from 323 yesterday. All right, let's take a look at one other thing here. I'm going back to SPX. Looks like I'm going to need to do a refresh again. And what I want to look at is this Vana model. And this is really interesting today. What this chart is showing is market makers delta notional on the vertical axis and how that changes with changes in price shown on the horizontal axis. There are two curves on this chart. The first is this light gray curve. And that is showing how market makers delta notional changes with changes in price. And according to this graph, there's hardly any change in market makers delta notional with changes in price. And then on the other hand, this pink curve is showing how market makers delta notional changes with changes in price and changes in implied volatility. And that change in implied volatility is the Vana effect. The change in delta with a change in implied volatility. So again, the pink curve is showing how market makers delta notional changes with changes in price and implied volatility. And let's just check and see where SPX is trading now. So right now my watch list is showing SPX trading at around 4107. So right around where this arrow is pointing. And what this is showing is as price decreases, market makers delta notional will increase and they have to sell futures. And this is typical of a negative gamma environment. And also as price increases, their delta notional will decrease and they can buy back their short hedges. And that is up to a certain point right around 4200. And let's just take a look and see how this is, let's see how this has changed from day to day. So we're looking at today, oops this is not, well not working. Alright so Hector asked on the Vana model when the pink line identifies implied volatility is going sideways, what means, what this means, this is showing market makers delta notional, their delta exposure and price. And this pink curve, purple curve is showing how their delta notional will change with changes in price and implied volatility. So what this is showing right now from the 4105 level that I was just looking at as price decreases and implied volatility increases, market makers delta notional increase and that means they have to sell futures to hedge their delta exposure. They want to remain delta neutral. And then on the other hand from that level if price increases they can buy back their short futures since their delta notional is decreasing. So that's what this is showing. So implied volatility, changes in implied volatility and price are built into the equation for the purple curve. Alright let's take a look at some setups now and I'm going to start with, start with the S&P 500 here and for those of you who may not be familiar with this chart, oh well actually I wanted to take a look at one other thing, I mentioned some data. Let's just take a quick look at first of all the numbers that I'm using. The gamma levels, I'm using these numbers right here. Actually I'm looking at SPX, SPI, NDX, and QQQ. So when I pointed out earlier the SPOT Gamma Equity Hub is showing the QQQ call wallet 330 and here this number, the one I'm using and the one that appears to be correct is 325. And then I also want to point out on this page this SPOT Gamma, Gamma NDX and this is a proprietary measurement of total amount of market Gamma. And this is what I use as an indication of market makers position on the Gamma curve. And this number, all of these numbers did decrease from yesterday. So this is showing that for SPX at the beginning of the day market makers position on the Gamma curve was slightly positive and for SPI slightly negative. And I primarily pay attention to the SPX number. All right let's take a look at setups now. So first of all, this is the hero signal. This is from SPOT Gamma and this is showing, this chart is showing price with the white line and the hero signal, hedging impact of real-time options. So this is showing in real-time options trades for SPX, SPI, and ES futures and market maker hedging activity. So this is the total or combined signal for the S&P 500. And this is generally the signal that I look at if I'm looking at the S&P 500 or trading any form of the S&P 500, whether that is futures or shares or SPX options. All right we'll take a closer look now at some of the individual components and then we'll start with setups. So first of all this is combining SPX. So let's take a look at SPX and we'll note the notional value here. It looks like this is jump sharply and Grasshopper asked if you're talking about, would that be a big divergence? So if you're talking about this right here, this last starting about 130, yes that is a big divergence and we'll take a look at that in a minute. So first of all point out this notional value is right now at positive 1.6 billion and just a minute ago, 30 minutes ago it was a lot less than that. All right so let's take a look at the individual components. First of all there's SPX, so there's about half of it, positive 821 million, SPI there's about the other half, 655 million and then ES futures at positive 82 million. All right pardon me just a second. All right I'm back, I'm sorry about that. All right so let's take a look at the S&P 500 and I'm going to zoom in on this chart and first of all I'm going to look at morning setups. So looking at the hero signal, first of all zoom in a little bit more. So this is about the RTH open and this was a confirmation of a short and remember the SPX, upper edge of the expected move for the day was at 4154.5 and that's where this reversal happened confirmed by options traders, options traders I'm sure were aware of that level and taking advantage of that and shorting and then there was a confirmation long 945 and then a divergent short shown right here. So note hero dropping first, price chops then drops lower and that was probably the uh for the S&P 500 probably the best setup of the day. So we have a confirmation short at the open, confirmation long all around 940 maybe 950 something like that and then a divergent short just after 10. So let's go take a look at the S&P 500 in book map. I just want to go over this and then we'll zoom in on and then we'll take a look at what's going on now. So this is a review of the the morning session the setups and remember there's the the short divergence confirmation short and it's not shown on this chart but that SPX 4154 was the was just about the high of the day for SPX and you can see order flow shifting bearish here note all the pink volume dots aggressive sellers market sell orders coming in and price moves down just to the below the 41 412 spy at large gamma one level as well as the 41 30 SPX 41 30 level order flow shifts bullish and note large traders coming in with iceberg orders they use to hide their size and that's pretty good size 2600 uh executed in 14 different executions as well as the aggressive buyers coming in and price moves higher doesn't make it up to the 414 level and then there's the divergent short and note the shift in order flow again and also this light blue line is showing that now large traders were fading that move so they often will buy weakness and sell strength and that's what's shown here so now they're coming in with iceberg orders and selling and then order flow shifts back note the green volume dots moving up and then the pink volume dots as price moves down down toward the spy 410 absolute gamma strike as well as the SPX 41 10 volatility trigger and that was just a so price moved back up and then reverse lower again just around 1130 to 12 so let's go back and take a look at a hero at 1130 to 12 and then we'll take a look at what's take a look at what's going on now so there's another divergence short set up at around 1140 something like that hero shifts lower price follows so good signals today from hero as well as order flow and book map and now let's take a look at this this move that a grasshopper pointed out this divergence set up let's go back and take a look at es and there it is at the 4100 level we'll zoom in on this so there's the 4100 support level SPX 4100 and it took a while there were a couple of tests of that level as options traders were taking positive delta positions at that support level so price reversed lower just after the cash open at 4154 and traded up and down but finally made it down to the 4100 support level before options traders came in and started moving price higher all right so great setups in the sub 500 today let's take a look at nasdaq now and for nasdaq we'll zoom in on the morning let's go take a look at hero and for well first of all for nasdaq there were some great long setups this this morning mainly watching order flow here just above the 323 level qq q3 23 note the shift in order flow and also a second entry point just around the 13350 level so that comes after the first reversal at the 325 call wall and this was these two long setups were confirmed by order flow rising cumulative volume delta aggressive buyers market buy orders coming in shown by the green volume dots larger traders buying with icebergs shown by the rising light blue line as well as buy stop orders fueling the move higher shown by the rising yellow line buy stop orders shown with these small green dots all right let's talk about the reversal setup now that was a very obvious setup so let's go to the nasdaq signal now and this signal combines nasdaq and in q in dx and in q into one signal so here's the this divergence setup in the morning note hero starts falling and then it takes a while but price moves lower and that is the this is around this level around 1030 is the reversal at the qqq call wall and price moves lower all right let's go back and take a look at book map so here's that reversal lower at the at the qqq 325 call wall level so plenty to do today just in the uh just in the indices the sp 500 and nasdaq well let's go back and take a look at hero now we'll just see what what nasdaq is doing now so there's the reversal along with the sp 500 let's see if that was signal with hero zoom out and yes it was so there's the total signal also a divergence setup right so those are the index products let's just one other thing that i wanted to take a look at today is the for one thing that i do take a look at during the is market internals and this is the sp 100 showing stocks advancing and stocks declining and note that this rally today is driven all by and this may it may be a little bit easier to see so this is the sp 100 showing stocks that are rising versus stocks that are decreasing so note that this advancing number this may be hard to see is 24 24 rising and 77 decreasing declining so there are only a few stocks driving this rally and this is google and google microsoft nvidia amazon amt amd and there's apple it's probably easier to see with this you can see here so this is the sp 100 sp 500 and you can see the stocks that are driving this google apple nvidia microsoft and then a few others all right so now let's take a look at some stocks so let's go take a look at amd now so there's amd and the call wall at 100 was definitely in play today so that was a target for a confirmation long we'll just zoom in here note the rising orange line up to the up to the 100 call wall that was the target for for long in the morning up until about 10 30 and then notice hero starts falling and it took about 20 minutes but price follows as so as price was heading up toward the 100 call wall traders started taking negative delta positions price once it reached that level moved lower so that is just a perfect divergent setup once you see this hero starting to fall and price heading up to a level that you expect to act as resistance you just watch book map watch order flow for the potential reversal setup all right so let's go take a look at at book map now for for amd so here's the quick move up to the 100 100 call wall so this was this reversal at the call wall was somewhat of a theme today and notice this amd did not quite make it up to the call wall before reversing lower so at first it acted as a target and then as a resistance level and note all the high liquidity at that level that's shown by this dark red band in the heat map in in book map that is showing the the history of resting orders liquidity in the order book and those are all limit cell orders all right pardon me all right i'm back so that's amd first confirmation long up to the 100 call wall and then a divergent short at the at the call wall and a couple of entries here if you didn't get the first short there's a second chance and third chance for short all right so that's amd let's take a look at amazon now in amazon for amazon 110 is the call wall shown here all right let's go take a look at hero see what options traders we're doing for amazon so here for amazon there's the 110 call wall and note the divergent short here hero starts falling excuse me and price follows uh just a few minutes later and note for the day hero uh has now remains negative excuse me all right so that's amazon and let's take a look at google all right so the good the uh for google the call wall uh it was in play this morning there was a slight uh confirmation short or actually maybe more of a slight divergent short just below the call wall and i did post a and discord and also on twitter a setup yesterday in google a reversal lower at the 110 call wall so there's the call wall it looks like in this initial move higher google did not make it up to the call wall uh before shifting lower wrong tool as traders were taking negative delta positions so let's go take a look at book map and now it looks like google is trading trading much higher all right let's take a look at book map google and remember when we looked at um think or swim the the big heat map google was bright green indicating that it is very strong very positive today so here's the initial reversal here's the call wall 110 note the high liquidity at that level the initial reversal lower supported the 108 level another test of 110 and this time price is breaking higher let's go back and see what options traders are doing right now and they're a little bit late but they are joining the party let's just take a look at puts and calls so traders are buying buying calls that show by the positive orange number and they're also buying puts and right now the call buyers are winning at 57 58 million versus minus 45 million for puts right that's google let's take a look at meta right meta was a short today let's take a look at the morning and really more of a confirmation short just confirming the uh the move lower and so looking at hero falling and prices responding let's go take a look at book map and no gamma levels are in play for today let's take a look at meta but definitely a good short today a lot of range and this was a good entry right here with a test of vwap and then to move lower as options traders continue to take negative delta positions all right there's meta let's take a look at microsoft all right what i saw in microsoft and hero this morning was a man on this so first of all a divergent short looking at falling hero and this was uh you know as we've seen pretty common this morning price as heroes making lower highs price makes a higher high then starts to move lower and it didn't pay out long as you know as book map chart showed uh microsoft was pretty choppy today so there's the divergent short and then a confirmation long hero rises as price is rising so that's microsoft let's take a look at invidia and invidia has typically has a very strong correlation between options trades hedging flow and price action that's shown on this chart you know the strong correlation between the purple line and the white line let's go take a look at book map for invidia so invidia mainly short trades today were what was what was paying off let's go back and take a look at hero and note the the short said 10 30 just after 11 30 and just after 12 30 so here's the first short and that at the 290 key gamma strike that did act as resistance that's shown here and then the second short there and then the third short just below that level level just below the 290 level and let's separate outputs and calls so this is showing that traders are buying calls and buying puts as of right now and that so far today the put buyers have been winning all right that's invidia let's take a look at tesla so here's the call wall at 175 price did not make it up there before a reversing lower at this confirmation short just below the 175 call wall let's see what traders were doing so again they are buying puts and buying calls and the put buyers are winning by a pretty wide margin here minus 95 million versus positive 4.7 4.8 million let's go take a look at book map so invidia and tesla are two stocks that often have a very strong correlation between hedging options trades hedging flow and price action so here's a reversal let me just turn this off so we can see price a little bit better okay so note the bullish order flow the first for about the first hour really all the green green volume dots aggressive buyers up to the 174 level just below the 175 call wall and then price reverses lower as options traders again we're buying puts the price started to move lower then reverses below vwap and that order flow really shifts bearish note all the aggressive sellers coming in as price moves lower and traders continue to buy puts all right let's those are stocks again the theme of the day was reversals at the call wall levels for several stocks as well as the nasdaq qqq all right let's take a look at nasdaq and then we'll take a look at the sb 500 then call it a day so it looks like the reversal has continued from the ndx 13200 level up to the qqq 324 level and i'll be maybe stalling let's take a look and see take a look at hero for nasdaq see what options traders are doing and now there's a divergent short setting up so here's the divergence long heroes providing great leading signals today or what appears to be a leading signal for a potential move lower but it definitely led this move higher at the ndx 13200 level great signals today for hero leading signals for nasdaq now let's take a look at the s and b 500 so right now for the s and b 500 it looks like a hero is continuing to move higher options traders are still taking positive delta positions and we'll take a look at bookmap take a look at the s and b 500 then we'll call it a right so now it looks like spx has made it back up above the or es has made it an spx spy has made it up above the spx volatility trigger in the spy 410 absolute gamma strike after finding support at the spx 4100 support level and now trading above the spy 411 volatility trigger all right so grasshopper ask would you i assume would you say nq leads the way more since hero is quite different from spx versus nq so what i would say there is i pointed out the stocks that were leading today the big cap tech stocks so right now es is about flat for the day up two points 0.05 percent and nasdaq nq is up 92 points or about 0.7 percent so definitely nasdaq is leading today and again i showed the stocks that were leading and they're those stocks are big components of both the sp500 and the nasdaq but they are bigger components of the nasdaq okay so again great signals for hero for index index products as well as stocks great reads great levels coming into play for both the index products and certainly much better trading day today than yesterday so anyway that's all i have i want to thank you for watching thanks for your questions and comments and i will see you tomorrow thanks again bye