 Hello everyone, welcome to Options with Doug, streaming live daily on Bookmap Discord and the Bookmap YouTube channel at 1.30pm 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, trading futures, equities, and options involve substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. The best way to contact me is through Discord. My name on Discord is Doug P. And in Bookmap Discord, there's an option stash Doug chat channel that is for content related to this channel, not necessarily just the webinar, but any content, questions, comments related to options, order flow, hedging flow, that's a great place for it. Again, as well as questions during the webinar. So that's Bookmap Discord, the options stash Doug chat channel. And then finally, I'm on X, formerly known as Twitter. My name there is at Doug Plus. And if you have questions, especially for those of you watching on YouTube, if you have questions after the webinar, Discord is the best place for those questions. The focus of my presentation and the focus of the options stash Doug chat channel in Discord is options, order flow, the impact of options markets on stocks and futures, and the influence of market maker hedging flow on price action. I have a two step process for trading in 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 changed 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 in my process is execution. And I look at real time order flow in Bookmap and real time market maker hedging flow in Spot Gamma Hero Excuse me. Real time market maker hedging flow in Spot Gamma Hero to confirm my thesis and for setups. And when I talk about setups today, setups can be taken any number of ways. For example, in the SAP 500, trades can be taken with ES futures, spy shares, spy options, either naked options or spreads, or SPX options, also naked options or spreads. So again, my analysis based on the options market setups will be focused on an underlying asset. Setups can be taken any number of ways. Questions and comments are welcome and I will be watching both the options-dug chat channel and Discord as well as the chat and YouTube for your questions and comments. So please feel free to post your questions and comments. And again, if you, especially for those of you in YouTube, if you have questions after the webinar, the options-dug chat channel is a great place for those questions as well as messages to be Doug P in Discord. What I want to talk about today, my agenda for today, I want to go over news items, economic data from this morning. Then I'll go through my positional analysis. Then I'll review some setups from this morning. There were some great setups. And then we'll get to the live market. I'll look at the SAP 500 NASDAQ and the live market. And if anyone has any stocks they want me to take a look at, please let me know. All right, let's get started with news items for today. So first of all, the big monthly jobs report was out this morning at 8.30 a.m. Eastern time. And the headline number did come out greater than expected. But I think what was more important to the market, what was driving the market was the unemployment rate was greater than expected. And that led to an initial bullish reaction that reversed just after the cash open. And then there was also some manufacturing PMI data out at 9.45 and 10.00 a.m. Both were greater than expected but still less than 50. So still showing contraction. All right, so that was the data for the week, wrapping up the week. Now let's get to my positional analysis. This is the SAP 500 futures in book map. I'm going to focus on the levels right now as part of my positional analysis. And then we'll talk about set ups in a few minutes. Excuse me. All right, so let's, before I take a closer look at this chart, I want to take a look at a larger time frame. This is SPX in a one day, 30 day one hour chart. So showing just price action for SPX, the key levels all based on the options market. So first of all, here's the reversal hire. Excuse me. Pardon my voice. The reversal hire after the August 18th options expiration. Remember that was a very negative gamma concentrated expiration. Somewhat evenly distributed between calls and puts, but a little bit more puts anyway. With that large negative gamma position, market maker traders were long puts, market makers were short puts. And as that price started rally implied volatility drops, those puts loss value and market makers could buy back their short futures. And then that shift from negative gamma to positive gamma has increased, has increased, continue up until yesterday. Gamma notional for SPX was positive 393, still positive today, but a little bit less negative, less positive. So anyway, the shift from negative gamma to positive gamma has continued. That's for SPX. All right, let me point out levels on this chart. So first of all, the dash purple lines are showing the lower and upper weekly expected move. Notice SPX is trading well above the upper weekly expected move. Then the dash blue lines are showing the lower and upper daily expected move. And so far, SPX is trading right in the middle of that range. There are also some key spot gamma levels on this chart. These are proprietary levels from spot gamma. I'll go over the key daily levels. First of all, there's the 4300 put wall. That's the strike with the largest net negative gamma that can be expected to act as support. And then the next level up is the 4495 volatility trigger that is spot gamma's proprietary gamma 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 hedge their delta exposure. And that tends to enhance or increase volatility. On the other hand, like SPX is trading now 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 hedge their delta exposure. And that tends to subdue volatility leading to lower trading ranges and more range days rather than large trending days. And also just above that, the 4500 level is the absolute gamma strike. That's the strike with the largest absolute negative and positive gamma. And that is the level with the highest concentration of gamma. And then above that is the 4600 call wall. That's the strike with the largest net positive gamma that can be expected to act as resistance. And note that level did increase from 4550 yesterday to 4600 today. So for the last three days, the call wall for SPX has shifted higher from 4500 to 4550 and now to 4600. And that is bullish. Moving that potential ceiling for price higher and higher. That's a somewhat of a hallmark of a rising market, positive gamma grind up higher with the increasing call walls from day to day. All right, so those are the expected moves. Weekly daily as well as these spot gamma key daily levels. Let's take a look at one other SPX chart, just a one day chart to get a sense for the levels that are in play for today. So SPX gapped up above its upper daily expected move and very quickly moved lower. And I'll talk about that more with setups, then made a push back for the upper daily expected move did not make it up there. And now SPX traded down almost to the 4500 level. And it looks like it is stalled right around the 4510 level, which was noted as support and the spot gamma AM founders note today. Let's take a look at that on book map. So in book map, I have my own cloud notes. And I use my own cloud notes so I can show a variety of levels here. So for ES, here's the upper daily expected move. It's a little bit different than the SPX upper daily expected move. I do calculate those levels separately acted as resistance today, just like SPX. Then I do have the SPX levels. There's the SPX 4500 level. Notice there is a price difference between ES and SPX. It's just a little over six today. So I'm just using the closest round number, which is six. So I'm showing this SPX 4500 level, the absolute gamma strike at ES 4506. And I'm also showing SPI levels. There's the SPI 450 absolute gamma strike. Here's that 4510 level that I was just talking about. And then here is the SPI 451 volatility trigger that's been an important level today. And after 11 AM, pretty much acting as resistance. So those are the levels. I have SPI levels, SPX levels, as well as key ES levels. I'll show them one column in my cloud notes. So those are the levels in play for today. So I talked about SPX, the shifts in levels. Volatility trigger shifted higher as well as the call wall. That's bullish. And for SPI, the volatility trigger also shifted higher. And the call wall also shifted higher. So that is bullish for the SPI 500. All right, let's take a look at NASDAQ now. Before I take a closer look at this chart, this is the NQ futures. I do want to take a look at a QQQ chart so we can isolate out the QQQ levels. Here's the 380 level. And there's a combo L3 level just below that. And that was the, I guess you wouldn't really call it resistance, but price broke below that level. The 380 level, that is at large Gamma 1 level. Very important level, large concentration of Gamma. Here's the volatility trigger at 378. That level did move higher from 376 yesterday. And now QQQ trading below that level in a negative Gamma position. If it remains below that level. All right, so those are the QQQ levels. Take a quick look at NDX. And we'll focus on the 15,500 level. That is the absolute Gamma strike. And for NDX, that level did shift higher from 15,000 yesterday to 15,500. And also for NDX, the volatility trigger also shifted higher. So NDX still trading above the 15,250 volatility trigger. All right, let's go back to book map. We have the lay of the land with the levels. Again, have my own cloud notes. Looks like the QQQ 381. This is just right at the open 381 as well as the NQ650 level acted as resistance. And then price broke below the 380 level. Right, so you can see on this chart the QQQ levels, the NDX levels, and also the round number levels for NQ. And we'll talk about setups in a few minutes. And I've talked about shifts in levels. So volatility trigger shifted higher across the board. SBX by NDX QQQ. Call wall shifted higher for SBX and SPY. And then for NDX, the absolute gamma strike also shifted higher. So again, we'll talk about setups in a few minutes. All right, let's take a look at gamma notional now. So we can understand how market makers were positioned on the gamma curve at the beginning of the day and how that might react to changes in price and applied volatility. So I'm going to look at gamma notional for SBX, SPY, NDX and QQQ. And note for SPX, the number is still positive but less so than yesterday. Yesterday gamma notional was 393 and today it is 180. So shifted a little bit lower. And for SPY, gamma notional was still negative yesterday at minus 131 and shifted much more negative today to minus 596. We'll take a look at the Vano model for SPY in just a minute and see what that means. And then for QQQ, gamma notional is 62, slightly lower than yesterday. Really more of a neutral position for QQQ. All right, let's take a look at the Vano model so we can take a graphical representation of what this means. So remember in a negative gamma environment, traders are long puts, market makers are short puts, and they have to trade with price to hedge their delta exposure in a positive gamma environment. Traders are for an index, traders are short calls, market makers are long calls, and they have to trade against price to hedge their delta exposure. All right, let's take a look at the Vano model and we'll take a look at SPY. What this chart is showing is market makers delta notional and showing how it changes with changes in price that is shown by the light gray curve and then the purple curve is showing how market makers delta notional changes with changes in price and implied volatility. And that change in delta with the change in implied volatility is the Vano effect. That's a second order Greek. So what this chart is showing is assuming a delta neutral position at the beginning of the day if price decreases, market makers will have to sell futures to hedge their delta exposure. They want to remain delta neutral. Their delta notional is increasing as implied volatility increases and price drops and they have to sell futures. So let's go back, go back to book map. So the S&P 500 reverse lower around the 453 level traded down to 450. Let's go take a look at the Vano model. So here's 453 still in a pretty neutral position. And then if we move down to 450, it looks like market makers were, this is not steep like further down the curve, but market makers in this move, their delta notional was increasing and they had to sell futures to hedge their delta exposure. So remember this works both ways on this negative gamma portion of the curve. Remember gamma notional for spy was minus 596 at the beginning of the day. So I just like to keep that in mind as I'm watching price changes in price and applied volatility during the day. All right, so for today my thesis, I was really looking for lower volatility, not as low as yesterday. Gamma notional did become moved down or less positive for SPX, more negative for spy, and based on the shifts higher in the levels, looking for more of a grind up. And like I say in the beginning, I look at order flow and hedging flow to confirm my thesis. With a bullish thesis, the order flow and hedging flow did not confirm that thesis. So let's get to some setups now and we'll see why. All right, so this is the S&P 500 hero signal. This is from Spot Gamma, provided to Spot Gamma subscribers. This chart is showing, and this is showing hedging flow. This chart is showing price for SPX and then options trades and market maker hedging activity for a combined signal for SPX, spy, XSP, and ES futures. So if you look at any form of the S&P 500, this is typically what you want to take a look at, but there are some recent advantages to looking at spy, and we'll take a look at that in a minute as well. All right, so that is the hero signal. Hedging impact, real time options. All right, let's zoom in on this chart. I'm going to zoom in on the morning just a little bit. I don't know what this, some problem with the data, I'm not sure what that is, but anyway, that's the cash open, the 930 cash open. And hello, VHU, glad you're here, welcome. All right, so this is the hero signal. And just after a few minutes, options traders started taking negative delta positions. That set up that initial short. We'll take a look at spy in just a minute and see there was another clue as well. And then a very clear divergence in the hero signal and price right around 1015, setting up a great divergent short. It took a few minutes for that to play out. Hello, trade and sale, welcome, glad you're here. All right, so two great short setups with more of a hero confirmation here, just at the cash open and then also at 1015 with a nice divergent setup, very clear divergent setup. The reason I look at this is I believe that options trades and market maker hedging activity are key driver of price in the NES futures, NQ futures as well as many stocks that we'll see. So this is a very important part of my process to look at this. Let's take a look at spy. I'm going to zoom in on this chart. This is something new, it's still in beta and it may be hard to see but there are flow alerts and this is indicating I guess a high amount of hero flow. So there's the first alert at 934 Let's just zoom in on that so we can see what was happening at 934. So just looking at this at the open, this flow alert comes in and Brent at Spot Gamma has talked about this a little bit looking for potential reversion to the mean. So that flow alert comes in and price moves lower. Let's zoom back out. So that was 934 and we'll take a look at the clues in order flow as well. And then this is the second alert at 1024 right here and that was a clear divergence setup just like the total signal for the SB500 with this additional confirmation of the alert there. Let's go take a look at the book map and I have the two alerts spy alerts marked and you can see from the book map chart these were great alerts for a short. Let's zoom in on this and we'll take a look at the clues in order flow. So first of all I'm going to concentrate on the volume dots and you can see the shift from aggressive buyers there shown with the green volume dots that's market buy minus market sell. JJ asked the flow alert is only in spy hero know it's available it looks like it's for all stocks. Now I have not seen it on the combined signal for SB500 or NASDAQ but I've seen it on a variety of stocks. So there's the first alert signal signaling the reverse at the upper daily expected move we're watching the shift in order flow green dots aggressive buyers there market buy minus sell and then the aggressive sellers come in pretty quickly and price drops sharply you can see the shift in cumulative volume delta that's shown by the dark flow line that shifts to pink as the number turns negative. Joel I don't know if it works for NDX it does work for QQQ. Alright let me check for questions and in YouTube VHU asked when I start analysis on stocks please take a look at please review hero and bookmap data for Tesla and Nvidia those are both on my both on my list of stocks to take a look at. Alright Truman asked when hero is rising at 1115 would you stay in the trade for SPX wouldn't wouldn't want to get out then I'll take a look at that so let's take a look at 1115 so we know we have two great short entries I have them marked the first one with the spy alert here's the second you can also see the confirmation with the order flow aggressive buyers on the way up right to the 453 level and then aggressive sellers start to come in and price moves lower and there is some consolidation around 11 to 1130 so I yeah I mean that would be a good place to take profits alright trading sale asked how do I get this new feature so it is in beta right now I'm part of the beta group I think if you're interested in becoming part of the beta group just send an email to info at spotgamma.com so again if you're interested if you're a spot gamma user, if you're an alpha subscriber if you have access to hero you want access to the flow alerts again they're still in beta just send an email to info at spotgamma.com alright so two short setups alright so Truman if you got in right around right around 453 down to 451 we'll take a look at hero in just a minute that certainly would have been you know close to 20 points in ES it would definitely make my day and then you know watching this you could enter again for another 10 points down to 450 and toward the 450 level alright so that's more trade management that's really up to you I'm just kind of showing the entry points how clear they were alright so let's go back to hero now right now we have hero for spy so hero does turn up for spy around 1055 price consolidates this flow alert comes in and then just a few minutes later price moves lower again let's go take a look at just the S&B 500 signal now or the combined signal now so this combined signal is pretty choppy today so Truman I'm not sure hero rising at this looks like the same as spy hero rising around 1055 and then around 1130 starts to drop again and price moves lower alright let's take a look at Nasdaq I'm going to take a look at a combined signal here zoom in zoom in right to the open so assume you're looking at this just just at the open and hero definitely bearish traders taking negative delta positions price responds lower so that's the first setup just like SPX or the S&B 500 and then this is more of a confirmation short as options traders stop taking positive delta positions and start taking negative delta positions let's go take a look at Nasdaq in book mount so pretty similar setups and so trend break here a lot of aggressive sellers come in whoops wrong tool aggressive sellers so let's see I have these marked and let's see if there were flow alerts for QQQ so for Nasdaq or the S&B 500 signal the combined signals I have not seen alright so I don't see any I have not seen flow alerts for the combined signals and I have seen them for spy QQQ I don't see any today for QQQ let's go back to book map now pretty similar price pattern for Nasdaq as the S&B 500 let me check for questions and Truman asks so the turn from taking positive delta positions to negative delta is important yeah that's one thing that I look for I'm looking at order flow and hedging flow and spot gamma here I'm looking for some confluence confirmation of a shorter long so again when traders let's say when traders are buying calls market makers that's positive delta market makers sell calls and they have to buy futures to hedge their delta exposure and just the opposite if they're buying puts that's negative delta when traders buy puts market makers sell the puts and they have to sell futures to hedge their delta exposure so it takes some experience to look at this and put it all together so that's what I'm trying to do now in this webinar and it's not not always clear I mean there's sometimes options traders are not in charge not controlling price other times they are at JJ ask how do I differentiate between the real flow using hero and the short blips I often get thrown away with the short blips with real trends when there are sharp movements that can happen I typically look at the look at the trend look at the trend of hero especially for for NASDAQ and SMB500 and I like to look sometimes that trends will give you a clear divergence setup let's go back to the SMB500 so I'm looking at hero making a series of lower highs and then looking for a potential reversal for the SMB500 sometimes it takes so today that took 45 minutes to play out so you just have to anticipate remember that was the reversal lower at the spy 453 level let's go to spy do a refresh it looks like it's lost the alerts back to my watch list alright so this is where the these alerts come in handy I think so we already know that we'll just zoom in on this so here's the spy 453 level any round number for spy or QQQ could potentially act as supportive resistance so a potential resistance level we know that hero is making lower highs you know this point right here just around 1015 hero is dropping pretty nicely so that's one confluence I know price is heading to a round number level that could potentially act as act as resistance then I'm watching order flow and book map so I in my presentation I'm shifting between hero and I can only present on one screen I'm shifting between hero and book map when I'm really trading I have three screens and I have hero on one screen, book map on another screen and execution platform on another screen and I use different platforms for futures, options and shares alright so let's go back to book map now let's go back to ES zoom in on this so there's the spy 453 level and I can see the shift in order flow here on my chart so I know that traders are taking negative delta positions market makers have to sell futures to hedge that and I can see the shift in order flow it's pretty clear aggressive buyers up to that level and then aggressive sellers start to come in with these you can see the shift to the pink volume dots it takes a while to play out that's pretty typical of the SMB500 not sharp reversals like some stocks alright so there is the reversal again it takes time not clear one easy way to to trade this is just to buy a spy put buy an SPX put buy a spy put spread or buy an SPX put spread anticipating the reversal you don't have to be precise with your entry and just wait for it to play out and I'm leaning more and more towards towards that approach to trading especially with stocks like Nvidia that move around so much it's pretty easy to get stopped out and an easier way to play play stocks anything that moves a lot takes a while to you know this rounded reversal like the SMB500 just trade options defined risk either long option or long spread and let it play out alright so JJ says by looking at the slope of hero oh nice so once you see such a divergence you anticipate and prepare for the trade yes exactly so that is exactly what I do so I'm again watching hero on one screen and book map on another screen I see that clear divergence and just waiting for a reversal so there it is again it takes time for the SMB500 alright so John asks I still do not understand market makers have to sell futures why is that true let's look at an example of SPX so market makers want to remain delta neutral first of all so when traders buy or sell so let's say that traders are buying SPX puts market makers want to remain delta neutral their selling puts that is a positive delta position market makers are taking the other side they want to remain delta neutral so the only way they have to hedge and SPX options trades trade is with futures ES futures now with spy they could share with hedge with spy shares but it's much more efficient to hedge with ES futures one ES contract is equal to 500 spy shares so John I hope that answers your question market makers always want to remain delta neutral that's their job they're just making markets and want to remain delta neutral alright let's get to some stocks now so today I want to focus on a list of stocks this is my watch list this is equity hub and what I'm going to focus on is this next expiry gamma percent and this is a weekly expiration not a monthly expiration but for certain stocks it's worth taking a look at this every week so this is for NVIDIA we noticed that 42.65% of gamma is expiring today 901 what traders typically do in stocks like NVIDIA at the beginning of the week they will start buying calls and these stocks that drives price higher and then these calls expire on Friday so as expiration approaches they start to lose value that is charm the change so as expiration approaches they start to lose value delta decreases when traders buy calls market makers are short calls and they have to buy stock to hedge their delta exposure when their delta exposure drops due to this approaching expiration the charm effect the change in delta with a change as time passes those calls start to lose value market makers can sell their stock edges and note that this chart is showing call domination for NVIDIA above 498 so in this green level green area calls dominating as price drops these calls are quickly losing value due to charm market makers can sell their long stock edges alright so let's take a look at NVIDIA now we'll go to HERO so this is called a call gamma unwind this is a very reliable setup so let's go to NVIDIA I'm going to zoom in so notice from the open maybe five minutes after the open traders start taking negative delta positions let's see what they're doing so they are selling calls that's shown by the following orange line here so today with all these calls expiring if traders are not aggressively buying calls NVIDIA really has no choice but to drop so traders selling calls NVIDIA drops pretty sharply and notice here this flow alert that came in for a secondary entry if you miss the open let's go take a look at book map alright so nice drop all the way down to 482 here's where that alert came in actually let me zoom in so here's that alert that was shown in HERO great entry point and then the next entry point at 490 short at 490 so this is a great example of a call gamma unwind trade and you can anticipate this again by going to this list in equity hub just ranking so I've ranked my watch list by this next expiry gamma percent the next is netflix so let's go take a look at HERO and we'll take a look at netflix and we'll see why the call gamma unwind did not work for netflix traders are buying calls let's zoom in on this SKG Gango how do I activate alerts so the alerts are still in beta if you have access to spot gamma HERO if you're an alpha subscriber just send an email to info at spotgamma.com and ask about accessing the beta alerts let's just see what traders are doing today so it looks like this I'm showing next expiry netflix would be today you're welcome so they are buying calls that expire today that's shown by the green line and they're also buying calls further out in expiration that's shown by the orange line so it's possible that they are rolling out some of their calls alright so call gamma unwind working for nvidia not so much for netflix at least early in the morning the first morning session and then notice as this HERO levels off price drops so aggressive call buying in the morning driving price higher and then price stalls as they take their foot off the gas alright let's go to let's go to tesla tesla is a little bit further down on the list but still 29% the threshold that spot gamma usually looks at is 30% but 29% close enough notice the call domination above the 260 strike which is the key gamma strike also the call wall let's go take a look at HERO now and see what options traders are doing so here's the 260 level looks like from this chart the price did not quite reach that options traders were selling calls they started buying calls around 11 o'clock but in the morning definitely selling calls let's go take a look at book map tesla alright the downtrend continues in tesla and notice the initial move in the morning driven by call sellers options traders and also notice the aggressive selling here in in tesla we can take a look at cumulative volume delta just this whole chart of magenta volume dots these are aggressive sellers cumulative volume delta negative from the open continuing straight down so aggressive sellers definitely in control today for spot gamma for tesla alright let's go back to HERO actually go to the total signal so initially options traders helping to drive price lower they start buying right around the 240-250 hedge wall but aggressive sellers keep pushing tesla lower so notice it looks like price did level off somewhat and then as options traders start to join the party again tesla moves lower that's around 120 so let's go back and take a look at the book map so we can see that as the case here the slope of the downtrend stops a little bit it's less steep and then as options traders start to join the party again tesla moves lower alright so skg angle how do you make your daily watch list for day trading from the info given by spot gamma so I have a watch list that I don't change I use all the time let's go to and you can see the stocks the instruments that I trade on book map here ES, NQ for futures and then these are the large cap tech stocks the magnificent 7 plus AMD and then also I have spine QQQ on there so I pretty much stick to these instruments for trading large cap tech and then the SB500 and NASDAQ so here's my watch list and I have this in spot gamma and you can see the entire watch list here so in this watch list I've added some instruments that I don't have in book map I just want to see what they're doing for example IWM the Russell and then also the combined signals SB500 NASDAQ as well as the NDCs NDX then the SB500 futures here's SBX somewhere so the stocks that I trade plus some additional information here in my watch list so this really doesn't change that much or has not changed for some time let's take a last look at the SB500 so the overall trend now has shifted back lower for hero so today traders are buying calls assume by the rising orange line the positive notional value there they're also buying puts put buyers much more aggressive 3 billion, negative 3 billion that's notional value versus 1.5 billion positive so this is another way of looking at hero that clarifies what is happening today provides a pretty clear signal that put buyers are definitely driving price and again when traders buy puts market makers sell the puts in SBX, SPI, ES and they hedge their delta exposure by selling futures alright so that's the SB500 let's go take a look at book map now price ES may be finding support at the SPI 450 level wrong tool alright so the good trades were we're in this morning and you're welcome let's take a look at NASDAQ notice the order flow remains remains bearish Kimble to volume delta still sloping down the yellow line showing stop orders also sloping down let's see what option traders are doing for NASDAQ and the signal is is more clear that options traders you can you can just see the overall slope of the hero line here for NASDAQ is definitely definitely bearish traders again buying puts and buying calls put buyers more aggressive definitely driving price action today alright so Frank says it seems hero does not work well for Tesla is it because people sell stocks yes so one thing you want to try and do is determine what is driving price action let's go to Tesla so I talked about options traders helping to drive price lower then as options traders started taking positive delta positions price leveled off somewhat and then started to slope lower again started to move lower as options traders started taking negative delta positions so you have to understand what's going on here how to interpret this and at the same time let's go back to book mat go to Tesla and this is definitely bearish it's as bad as bearish as it gets just looking at this falling cumulative pink volume delta you know I would certainly even with rising hero I would still most likely be looking for for a short or you know with all this all these pink volume dots anyway the good setup was in the morning with the clear confirmation from hero here's that consolidation as traders taking positive delta positions so you're just putting a narrative together so you see hero rising price not rising you see the very bearish water flow falling cumulative volume delta it gives you a sense that options traders are during this time period here not really in control of price all price is able to do here is consolidate not move higher traders are taking positive delta positions all right let me take a look at a couple final questions in youtube here so SKG Gango asked to get the best estimation of the direction of the market in order which one is better ES futures SPX spy or you should one look at all three so I don't know if you're talking about book map or hero I look at the combined signal but I have started looking at spy because of the hero alerts all right so let's go back to spy again remember the hero alerts so I'm I'm watching the alerts here for spy but in book map for any if I'm trading any form of the SB 500 definitely looking at ES futures there's way more information here I have stops and icebergs just way more information then on the spy chart so if I trade any form of the SB 500 in book map I'm looking at the looking at ES all right so John asked so because ES spy SPX prices were up this morning not very long market makers had to sell ES futures to lower to remain neutral so market makers are responding to what options traders are doing right now let's go back to hero just looking at spy here overall traders wrong tool traders taking negative delta positions so this means that traders were buying spy puts market makers were selling the puts and they had to sell futures to hedge their delta exposure that's not because of price that was that price changes in price and volatility I talked about that with the Vanna model but overall traders were buying puts market makers are selling the puts that's a positive delta position and they have to sell futures to hedge their delta exposure so John also asked if the idea was up too much this week market makers had to sell Nvidia to remain neutral so when traders were buying Nvidia calls during the week market makers were selling the calls remember they're always taking the other side of the position and they have to buy stock to hedge their delta exposure traders buy calls market makers sell the calls and they have to buy stock to hedge their delta exposure since selling calls is a negative delta position and then as Friday approaches those calls that traders along especially the out of the money calls are quickly losing value due to charm that change in delta as time passes and market makers no longer need their long stock edges and if traders are not aggressively buying calls today if they're actually selling calls market makers can buy back their short hedges so John I hope that answers your question my time is up I want to thank everyone for watching thank you very much for your questions and comments and remember Monday is the labor day holiday in the US futures market is open in the morning but the stock market is closed all day I will not be screaming chat during the day on Monday but not screaming so I will see everyone on Tuesday have a great weekend have a great holiday weekend and I will see you on Tuesday thanks again bye