 Hello, everyone. Welcome to Options with Doug, streaming live daily on Bookmap Discord and the Bookmap YouTube channel at 1.30 p.m. Eastern Time. Before I get started, I need to go through the Disclosures. General Disclosure. I'll bookmap them in materials, information, and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations. 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. Here's my contact information. The best way to get in touch with me is through Discord. My name on Discord is Doug P. Also on Bookmap Discord, there's an options-doug-chat channel that's a great place to post questions, comments, excuse me, questions, comments, and content related to the topics of my presentation and the topics of the channel, which I'll go over in just a moment. The focus of my presentation today and the focus of the options-doug-chat channel is options order flow, the impact of options markets on stocks and futures, and the influence of market maker hedging flow on price action. I have a two-step process for trading and the first is planning, and I use positional analysis. I look at how traders and market makers are positioned in the options market and how those positions change from day to day to develop a thesis regarding the expected trading range and volatility for the day as well as the directional bias. In the second step of my process is execution. I look at real-time order flow in Bookmap and real-time market maker hedging flow in SpotGammaHero to confirm my thesis and for setups for entries and exits. And when I talk about setups today, I will be talking about setups in an underlying asset, and those setups can be taken any number of ways. For example, the SP500 setups can be taken with futures, shares of SPI, SPI options, SPX options, or even ES options. Questions and comments are welcome, and I will be watching both the options-doug-chat channel in Discord as well as the chat in YouTube for your questions and comments. Please feel free to post. I'll do my best to answer your questions. And Sparky asked, do we need the hero indicator to tell positive or negative gamma, or can we tell based on the cloud notes, or is it something entirely different? Alright, so Sparky, I will cover that in just a moment. I'll also type in an answer later. Essentially, for just knowing gamma notional, all you need is the SpotGamma AM Founders note, and I'll show you where you find that information in just a moment. Alright, so my agenda for today, I'm going to cover news items, economic data, and events, and earnings for the week. Then I'll go through my positional analysis, then I'll review some setups from earlier today, then I'll take a look at the live market. And when I get to the live market, if anyone has any stocks they want me to take a look at, please let me know, and I'll be glad to do that. Alright, let's start with news items for the week. So it's a pretty light week, as far as economic data goes. In fact, very light week. But there are a slew of Fed speakers out all week, and featuring, of course, Jerome Powell. First of all, Wednesday, the 8th, at 9.15 a.m. And then on Thursday, Jerome Powell speaks again at 2 p.m. Eastern time. Alright, so again, a number of Fed speakers all week, featuring Jerome Powell on Wednesday and Thursday, and then the only high impact economic data coming out this week that I saw was consumer sentiment on Friday at 10 a.m. Alright, let's get started with positional analysis now. I'm going to start with the SB 500. So this is the SB 500 futures in book map. And before I take a closer look at this chart, I want to take a look at a larger time frame. I'm going to go to the SPX chart. This is a 30 day one hour chart. Let me point out the turning points on this chart, or the key turning points. First of all, this is the October jobs report. Gamma squeeze after that. And price ran into resistance right around the 4380 level. Looks like the high there was 4390 4393. There's a lot of resistance in that level. Know the upper daily expected move. I'll show that in just a moment is just right around that level as well. And there were also issues with Treasury yields war in the Middle East and price rolled over. This is the October 20th options expiration very negative gamma put dominated. The expectation was for a put Vanna rally that did not take place or that did not more than a couple of days price rolled over. Then on last Monday. Remember traders loaded up on puts on Friday. Thinking about weekend risk. And as it turns out, there were no new events that really would have an impact on the market at least according to what the would traders and investors were thinking. Vix dropped huge put Vanna rally last week and also fueled by what the market interpreted as dovish comments by drone pile at the FOMC meeting last week in the press conference. And the rally continued until Friday. And it looks like it has found some resistance right around the previous level. Right. So that is the bigger picture. The key turning points key events. Let's take a look at levels on this turn. So first of all, the dash purple lines are showing the lower and upper weekly expected move. That's based on the options market and then the dash blue lines. And that changes once a week. I update that on the weekend and it remains the weekly move expected move remains at those levels all week. And then the upper and lower daily expected move that changes every day. That's again based on the options market. SPX is trading within that range. Again, that's shown by the dash blue lines. Alright, let's take a look at the spot gamma levels. Now these are levels based on gamma weighted open interest available to spot gamma subscribers. They're shown with a dark red horizontal lines. I'm going to point out the key daily levels. First is the put wall. That's the strike where the largest net negative gamma that can be expected to act as support. Not really in play now. The next level up is the volatility trigger. That's at 4335. That is spot gammas proprietary volatility trigger or really a volatility flip level. And it's right near the zero gamma level as well. So below the volatility trigger 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, above that level, like SPX is trading now, 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 or decrease volatility, leading to smaller trading ranges and again, lower volatility. And SPX is trading above that level now in a positive gamma environment at the beginning of the day. Alright, the next level up is 4400. That is the absolute gamma strike. That's the strike with largest absolute gamma absolute positive and negative gamma. And that is also the call wall. That's a strike with large net positive gamma. And that can be expected to act as resistance. So those are the key daily levels and note the volatility trigger the call wall and the absolute gamma strike all shifted higher. So I had trick for SPX very bullish. Alright, so those are the SPX levels. Let's just take a look at a one day chart so we can get a closer look at the levels and play for today. So here's SPX in a one day chart. And really the only spot gamma level and play for today is the 4350. That is a large gamma three level. One being the most important five being the least important. And that was also noted as support and the spot gamma am founder's note. And it has so far today done its job. Let's go to book map now. So in book map, I have my own cloud notes. So I can show SPX levels. There's the SPX 4350 large gamma three level support level that I just mentioned. I'm also showing spy levels on this chart. There's the spy 435 volatility trigger. Right now, there is a difference in price between ES and SPX. And I typically post that in discord sometime between 945 and 10am, along with some other ratios or index relationships. I post that in the options dash Doug chat channel every morning. Alright, so there is a difference again between price and ES and SPX right now. Today, it's about 17 points. So the SPX 4350 is actually shown at ES 4367. Alright, so those are levels on play for today. The spy 436 level acting as resistance this morning. And then right now the SPX 4350 and the spy 430 40 gamma level acting as support. And we'll take a look at setups in in just a few minutes. And note again, I mentioned the gamma notional for SPX today was is positive at the beginning of the day. And that leads to lower volatility, smaller trading ranges, which which is pretty clear to see here, especially compared to the the moves last week. Alright, let's take a look at NASDAQ now. And Sherega not sure I'm pronouncing that correctly. You're welcome. Alright, so NASDAQ also trading in a pretty narrow range for for the NQ about 100 point range so far. And let's before I take a closer look at this chart, I want to take a closer look first of all at QQQ to see the levels and play for today. Here's the QQQ volatility trigger at 368 that did act as support. Now may be acting as resistance. And by the way, I forgot to mention for spy, the volatility trigger put wall and call wall also shifted higher as well. So bullish shifts higher. Another hat trick for spy. Alright, so the levels and play for today, the 368 volatility trigger and the 367 level acting as support so far today. That's for QQQ. No QQQ is trading now below its volatility trigger. All right, let's take a look at NDX. In NDX, there really no spot gamma levels and play for today. There's some levels down below and a very interesting situation in NDX. Now it's not very liquid. So the levels can stack up a little bit more strangely in NDX. But anyway, the put wall is higher than the call wall today, which is pretty unusual. Alright, so for QQQ, the volatility trigger and absolute gamma strike shifted higher. And for NDX, the volatility trigger and put wall shifted higher. And note, here's the put wall, 14,800. That's for NDX. And the call wall remains at 14,600. Alright, so again, we're back to NQ futures. And I also, I have my own cloud notes here. And here I'm showing the round number levels in NQ. There's the 15,250 level that acted as resistance today. And then there's the 368 QQQ, 368 volatility trigger, and then the 367 level. And those two levels have been in play for today. And again, we'll take a look at setups in a few minutes. So I mentioned shifts in levels, all bullish for SPX by NDX, QQQ. I'm not showing the Russell here, but the levels, there were several shifts higher in levels for the Russell as well, Russell 2000. Alright, let's take a look at gamma notional now to see how market makers were positioned on the gamma curve at the beginning of the day. So what I'm looking at is gamma notional here for SPX by NDX, QQQ, RUT, and IWM. And note, now the gamma notional for SPX is positive. In a positive gamma environment, smart gamma assumes that traders are short calls, market makers are long calls, and they have to trade against price to hedge their delta exposure. And that tends to subdue volatility in a positive gamma environment leads to more mean reversion. And last week, gamma notional was gradually shifting from negative, really for the last, probably the last couple of weeks, but the last week for sure with that large rally, gradually shifting from negative to positive. So gamma notional became positive for SPX on Friday, and then became more positive today. And just the opposite for spy, spy actually shifted to slightly more negative gamma. And otherwise, all of these others, NDX, QQQ, RUT, IWM all shifted higher, less negative. Alright, let's see what that means. Now we'll take a look at a graphical representation and get a better idea of what that means. This is the Vana model. I'm going to start with SPX. What this chart is showing is market makers delta notional. Oops, wrong tool. Market makers delta notional on the vertical axis and how that changes with changes in price, showing on the horizontal axis. There are two curves on this chart. The first, the light gray curve shows how market makers delta notional changes with changes in price only. The purple curve adds implied volatility to the equation. That shows how market makers delta notional changes with changes in price and implied volatility. And that change in delta with a change in implied volatility is the Vana effect. Vana is the second order Greek. So we'll focus on the purple curve. Let's see where SPX is trading right now. And Jay Medina asked about NQ. We'll take a look at NQ in a few minutes. I've just covered my positional analysis for NQ and in a few minutes I'll take a look at setup in NQ. Alright, so right now SPX trading right around 43.52. So let's take a look at that on this chart. Alright, so that's near the bottom of this curve. So there might be just a very minor, minor tailwind for price. If price moves higher, that indicates market makers delta notional will decrease slightly and they can buy back short futures. And that really, I would not, I would not even count on that. That I would discount that. So anywhere in the bottom of this trough here, this indicates a price moves higher. Market makers delta notional will start to increase and they'll have to sell futures. And on the other hand, if price starts to decrease, they will have to sell futures as well. Alright, so that is SPX gamma notional. This is typical of a positive gamma environment. Let's just shift back a couple of days. Let me just check. So gamma notional was negative on November 2nd. That's what I'm looking at now. Went back a couple of days. So this curve with a very steep skew to the left, typical of a negative gamma environment. On November 3rd, Friday, gamma notional shifts positive for SPX and this shifts more positive today. So either way, price moves here. There's a headwind for price as market makers have to sell futures to hedge their delta exposure. And this environment is, I think, better for range bound trades like iron condors and that kind of thing, rather than looking for large directional moves. Alright, let's take a look at SPI. So SPI is still negative gamma. SPI right now trading right around 434, right around that zero gamma level. Somewhere around here, very slight tailwind. The bottom of the trough right at 438. Again, I'm looking at the purple curve. Let's take a look at gamma notional for QQQ. Also still slightly negative for the day. QQQ now trading negative for the day, right around 367.5, right right here. So note, if price starts to decrease, market makers will have to sell futures to hedge their delta exposure and that tends, that will tend to enhance or increase volatility. Alright, so my thesis for the day was looking for lower volatility, more of a range day. And really, first of all, a primary thesis based on the shifts higher in levels would be looking for a bullish day based on the shifts higher in all the levels. On the other hand, there was quite a move yesterday and certainly a little bit of mean reversion would be would be in order or at least consolidation for both a lot of stocks. And I'll show a couple of I'll show an example of that. Alright, so let's take a look at some setups now. I'm going to start with the hero signal here to see what options traders have been doing today. So this is the hero signal hedging impact real time options. And this is showing options trades and market maker hedging activity for a combined signal SPX spy XSP and ES futures all under one combined signal that is shown with the purple line. And then the white line is showing price for SPX. So that's the hero signal that's available to spot gamma subscribers, assume it on this chart. And so far for today, this hero signal has really been trending down and started to accelerate lower right around noon. Traders are taking negative delta positions. We'll see what they're doing. They're buying puts that's been going on all day that's shown by the following blue line the negative notional value there. That's what's driving price today pretty clear from the signal there. Traders buying puts when traders by puts market makers sell the puts and they have to sell futures to hedge their delta exposure. All right, let's go take a look at book, ma'am. Go back to ES. So really the trade was was that the open, you know, if you were looking for some sort of main reversion, looking for that at the open, let's just zoom in on this a little bit. Sorry about that. All right, there we go. So this is about the first hour of trade. Right at the open, there was this kind of a low volume Wooshire note the gaps and then immediately met by aggressive sellers. These are volume dots. They show market buy minus sell and green dots are showing more buyers than sellers. Magenta dots showing more sellers than buyers. And it's very obvious there the shift in order flow. A lot of aggressive sellers come in as traders were taking negative delta positions that they were buying puts more aggressive sellers. Yes, making a series of lower highs. All right, let me check for questions. All right, Alexandra says the CBD is usually negative in ES minus 28 K. Normally when it is below minus 10 K, it is followed by a drop. How do you interpret these huge numbers? I look at CBD as just one one signal. I don't have any stats. So I'll just take your word for it at minus 10 K. I don't have any stats on the the size of CBD. But I look at everything. So I'm looking at hero. I'm looking at what options traders are doing. I'd look at icebergs, stops and CBD. But that's that's certainly good to know. Thank you. Thank you for noting that. All right, so short set up in the morning, assume back out. All right, so here's the short set up in the morning, long period of consolidation, and then the options traders shift to more negative, negative delta, right around 12 o'clock, and then price moves lower down to this support level. Note Alexandra noted the high number of cumulative volume delta has been moving down all day. On the other hand, take a look at the stop of the icebergs. Large traders are fading this move. They're buying the move down. That's pretty typical of large traders. So we have to take a look at everything. Stop order is not really a factor today, just 617 contracts. Aggressive sellers moving price lower. Large traders with iceberg orders buying. And we saw that options traders were buying puts so that all goes together. You know, you can build a narrative based on a thesis and then what is happening today? All right, so that's the SME 500. Let's take a look at NASDAQ. NASDAQ, very similar pattern. Let's take a look at options traders first to see what options traders are doing in NASDAQ. I'm going to take a look at NASDAQ first. This is a combined signal for NDX and QQQ. And just like the SME 500, traders are buying puts today. That's shown by the following blue line, the negative notional value much larger than the notional value for calls. And they're also selling calls. That is also negative. So they're selling calls and buying puts. And when both of those numbers are when both of those lines are moving in the same direction, that's very that's a strong directional indicator. Sorry about that. It's an issue with hero. Alright, so short multiple short entries, just a few minutes after the open again around 1040, 1045. Alright, let's go take a look at book map. NASDAQ making a series of lower highs, pullbacks, all good short entries, aggressive sellers, aggressive buyers on the way up, aggressive sellers, more aggressive sellers, initial price target at the 368 volatility trigger price dropped sharply right around one o'clock down to 367. Now maybe finding support. Let's go back to hero. Another excellent signal to take a look at it here in hero is this magnificent seven. This is the a combined signal. This is a new indicator in hero here. Great signal, combining signals, hero signals for Apple, Amazon, Google, Meta, Microsoft, Nvidia, Tesla stocks known as the magnificent seven. And that is also negative trending down today. Let's see what traders are doing. So they're buying puts and selling calls both lines moving in the same direction. Very bearish signal for the magnificent seven and one other very clear signal here. And as opposed to last week, notice all the red there. These are all the stocks in my watch list. It's the magnificent seven plus plus the indices all negative much needed consolidation day. And Alexander remember the iceberg orders in in the SMB 500 they were they were buying into weakness. That's pretty typical of larger traders. So we have to look at the we can't look at CBD and just a vacuum. We have to look at everything. So overall, though, it is looking more bearish today. options traders taking negative delta positions. As you mentioned, CBD very negative. Alright, let's take a look at some stocks now. First one I want to take a look at is AMD note the 110 key gamma strike up and down today for AMD and hero really doesn't resolve to the downside until about 1230. So before there were both bearish and bullish signals for AMD this you could this one you could interpret as bullish. That flow alert often a good signal of mean reversion. Alright, let's take a look at book map. Good AMD. So so far bearish for today as traders take negative delta positions. Market makers take the opposite side of those so they have to sell stock to hedge their delta exposure headed down to the 110 key gamma strike stick look at Amazon 140 as the call wall. Let's take a look at hero and Amazon. So mostly the hero signal today has been bearish. Note the flow alerts as price approaches the 140 call wall key gamma strike. Traders start taking negative delta positions. And now price is moving lower. Let's go to book map. So often in a positive gamma environment, I will look more towards single stocks for more movement. And there were some great setups today. So there's Amazon again the 140 key gamma strike call wall. Not a lot of range today and Amazon. Right the next Netflix bearish day in Netflix. Let's take a look at hero see what options traders are doing. Let's go to Netflix. So options traders taking negative delta positions. Pretty much from the open note the floor alert there. Targeted the 430 key gamma strike. And as options traders have taken their foot off the gas, they've stopped taking negative delta positions. Price has leveled off and is consolidating. Let's see what traders are doing. So they're both buying puts and selling calls. All right, the next is let me check for questions. All right, Sherega, sorry for the mispronunciation. What spot gamma subscription do you have? I have alpha. Alpha is the subscription that includes hero. All right, Harina, sorry for the pronunciation. Are you doing analysis every day at the opening market to know I my live stream webinar is at 1 30 p.m. Eastern time. No, of course, I'm doing my own analysis and trading in the morning. But I don't I don't broadcast in the morning don't live stream in the morning. I'm trying to start thinking about posting more setups. I just have a lot of positions to manage right now. Hopefully I'll be able to start doing that soon or you know, I'll try to do that more often. So that would be in discord. So there again in the options dash dug chat channel on book map discord. All right, so there's Netflix 430 key gamma strike. Let's go back to book map. There's the 430 key gamma strike. Note all the liquidity at that level. The heat map and book map here showing a history of the orders in the order book. And this is pretty typical for stock. These large orders come in at the cash open shown with the arrow there. That's the 930 cash open. And they usually stay in the order book until they're filled. So it looks like they came in again and then pulled their orders just a few minutes ago. On the stick a look at Tesla. Another bearish day in Tesla. Let's see what options traders are doing. So let me scroll out a little bit and note that 225 is the call wall and note the sharp reversal at that level 225 the call wall sharp reversal that level. So that's a great setup. If you're looking for a short maybe set an alert or something. So you you're notified when the stock gets to that call wall and you can take a short at that time. However you want by a put sell stock sell a call spread by a put spread. Alright let's go take a look at Hero. Go to Tesla. So here's the reversal at the 225 call wall. Note that very timely flow alert. Another signal for a short. Looks like there was some consolidation at the 220 key gamma strike. And then the next target down below was the 215 hedge wall. Alright. Arena you're welcome. Sherega you're welcome. Jay Medina asked do I have Instagram. I'm not active on Instagram and I all of my trading related posts are on X. So if you want to look for me in social media discord and X. Alright so very bearish day in Tesla. Signaled by the falling hero signal reversal of call wall and a very timely flow alert at at that level. Targets the 220 key gamma strike and the 215 hedge wall. Let's go to book map 225 220 and 215 all key gamma levels. Call wall key gamma strike and hedge wall. All those levels definitely in play for today. Some consolidation around the 220 level before moving lower right around noon. To the 215 hedge wall. Alright let's take a look at one other stock. And there were plenty of examples like this. Let's take a look at. Let's take a look at just a moment at Roku for example. Huge move last week along with every every other stock as well as earnings. And this was well above the upper weekly expected move. So my idea was to look for short. So let's go to Roku now. Just to look for some read mean reversion. So here's Roku note 85 the call wall reversal at the 85 call wall. So ways to play that short the stock by a put by a put spread sell a call spread. Alright so there's Roku plenty of examples of huge moves last week. Alright does anybody have any stocks they want me to take a look at? Otherwise we'll go back to the SB 500. Looks like the SB 500 finding some consolidation. Some support right around the 4350 level. And the spy 430 40 gamma level. Alright Alexander ask about AMD around 107. Nothing really here in book map. Not a not much liquidity. Resting orders at 110 109 50 109 and 108. Not much at all at 107. Let's go take a look at hero. Go back to AMD zoom in. Separate outputs and calls. Alright Alexander I'm not sure you say there is a big point order. Where are you seeing that? And AMD today traders are actually sorry about that. Traders are actually selling puts. That's shown by the rising blue line the positive notion of value here. And Alexander asking about the market on close that's not really something that I look at. I'm I'm showing and talking about everything that I look at. Alright so in AMD AMD what heroes showing here is net for the day. Traders are selling puts. They're also selling calls selling puts. Selling implied volatility. SB 500. And Jay Medina ask what is the link for discord. Let's see if we can find that. Just go to bookmap.com. And I'm not going to post it in chat over there but you can you should be able to find this pretty easily. Just go to bookmap.com. Click more. Click chat room. And there you go. Alright so I already have discord open but if you don't have discord. There you go. Let me go back. And Alexandra asked do I have my own discord. No I don't. Not at this time. I may in the future but I don't now. Check NASDAQ. Looks like some consolidation now. And Jay Medina you're welcome. Please join us in discord. Free and open to everyone whether you have a bookmap subscription or not. My channel is there. There's a lot of other great content about a wide range of topics and in a wide range of languages. Let's go back to bookmap. Let's take a look at one other thing. Let's go back to this is this is equity hub Alexandra. And we can take a look at get some more information on AMD. Now this is going to show this information is all static. And the static information is based on gamma gamma weighted open interest. It's updated once daily. So this is not going to show information for today but it will update overnight. So what we can see look at this put and call impact chart. I'm going to zoom in on this. This is showing calls and puts calls with the orange line puts with the blue lines. So this is showing the key gamma strike at 110 yet you can clearly see the largest absolute gamma there positive call gamma put gamma. So that may change tomorrow. And Alexandra the yes the hero and gamma information is amazing. Stephen asked what is my or Stefan asked what's my favorite setup. My favorite setup is a hero divergence. So looking at for example if price is increasing options traders are taking negative delta positions. Price is moving up to a potential resistance level. Let's say the call wall for example. And traders are options traders are fading that as price moves up to that level. I'm looking for a short. So that's a hero divergent setup. And that is my favorite setup. Let's go back to book map still support at the 4350 434 level. There are some more buyers coming in shown by the green volume dots. So there you go Alexandra CVD has still very negative for the day but it looks like it's flattened out a bit. So a lot of consolidation now options traders hero signal is up and down. All the lines in the sub chart have leveled off. Let's take a look at NASDAQ pretty similar situation consolidation at a support level. All the lines in the sub chart have leveled off. Go back to hero. Looking at NASDAQ now leveled off. Let's check alert see if we see anything here. There's an alert in Google. All right so this could be a potential setup in Google. I have Google not Google not Google in book map. So this Stefan this would be a potential setup. Let's just say for an example price was at the at some resistance level. Call wall a you know an absolute gamma strike and hero is trending lower. So I would look for price to follow at some time. Stefan asked so trend is it your friend. No I really didn't say that. So Alexander here is here's a potential divergence. Let's just take a look. We'll scan through pretty quickly here. Let's go to SB 500. Not really a divergence setup here. Maybe other than not the greatest example but hero is no hero is just flat here. As price was increasing it reverses lower. Not really the best example. Keep looking on Netflix. That was one that I talked about this morning. See then on Netflix. All right so Alexandra here's a divergence setup for you. From the open hero turning lower. Traders taking negative delta positions. Price pops up. Now that's not a no potential resistance level. At least no spot gamma level there. But price moves up as heroes moving lower and then price responds lower. So that's the kind of setup that I like. And Stefan if you miss that initial entry there were multiple additional entries. Multiple pourbacks for a short. And Alexandra you're welcome. All right my time is up. I want to thank everyone for watching. Thank you very much for your questions and comments. I love these interactive sessions. All you guys on YouTube thank you very much. Again I love your questions and and keep it up. All right tomorrow as far as I know no economic data we'll watch the levels tomorrow and the gamma notional. All right everyone thanks for watching. Thanks for your questions or comments. And we will see you tomorrow. Thanks again. Bye.