 Hello everyone, welcome to Options with Doug, streaming live daily on Bookmap Discord and the Bookmap YouTube channel at 1.30pm Eastern Time. Excuse me. 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, training 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. The focus of my presentation and the focus of the Options-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 and the first is planning and I use positional analysis. I look at how traders and market makers are positioned to 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. The second step in my process is execution and I look at real-time order flow and Bookmap and real-time market maker hedging flow and Spot Gamma Hero to confirm my thesis and for setups for entries and exits. When I talk about setups, I will be talking about setups in an underlying asset and those setups can be taken with options, stocks, or futures. And I will be talking about setups at a level that are good for all of those instruments, not necessarily scalping futures. Questions and comments are welcome and I will be watching both the Options-Doug chat channel and Discord as well as the chat and YouTube for your questions and comments. And hello Karma FX, I'm glad you're here, welcome. Alright, so what I want to talk about today, my agenda, first of all I want to go over economic data, events, and earnings coming up for today as well as the rest of the week. Then I'll go through my positional analysis. Then I want to review some setups from this morning and then I'll talk about the live market. So 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, so first of all, earnings, economic data, and events. For today, of course there are a couple of big earnings reports after the market closes and let's just take a look at that. This is something new that SpotGamma introduced, this earnings chart. So this is available as far as I know to SpotGamma subscribers. And what this is showing is the day, the instrument that is reporting earnings and whether it is before the market open or after the market closes. So the blue dots indicate before the market opens and the red or pinkish purple whatever color that is indicates after the market closes. Alright, so what we can do is hover over the instrument and this is also going to show the expected move. So this is showing for Google and Google about a 4.9, 4.92% move and then for Microsoft a 4.74% move. So this is this afternoon, just after the market closes for Google and Microsoft. And then tomorrow after the market closes meta reports and a little bit larger expected move there, 7.82% plus or minus. Alright, so that's earnings and then of course tomorrow the F1C meeting concludes at 2pm and the announcement, the rate announcement comes out at 2pm and then the press conference begins at 2.30 and this will be the announcement will come during my session. So wherever I am in my presentation I will stop and will watch the live market at 2pm. So that's tomorrow. And then on Thursday, Thursday morning at 8.30am GDP comes out and durable goods. So economic data, GDP and durable goods and then Friday the PCE comes out at 8.30am eastern time and consumer sentiment at 10am. Alright, let's start with the positional analysis now. I'm going to start with the S&P 500. This is the ES Futures in Bookmap and 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 30 day one hour chart. Excuse me. So this is SPX in a 30 day one hour chart. The reason this is so I guess scrunched up here is the smart gamma put wall moved down pretty substantially from 4300 yesterday to 4000 today. So I'll talk about that in a little bit more detail in just a moment. So first of all let me point out the expected moves for the week shown with the dash purple lines and then the lower and upper daily expected move shown by the dash blue lines. So it looks like SPX is approaching that upper daily expected move. So I talked about the SPOT gamma put wall. These SPOT gamma levels shown with the horizontal red dark red lines are proprietary to SPOT gamma. These are key gamma levels. So again the first is the put wall. That's the strike with the largest net negative gamma that can be expected to act of support and obviously that is not in play. And then the next level up is the volatility trigger and that is at 45 40. So that's right here in that a SPOT gammas 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 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. And then the next level up is the 4600 level that is the call wall. That's the strike with the largest net positive gamma and that is also the absolute gamma strike. That's a strike with the largest absolute gamma. And note that level did move up from yesterday 4500 yesterday and then again the absolute gamma strike moved up to 4600 today. So there's been a build of call gamma at higher levels primarily 4600 for for SPX and around the 4060 level the call wall for for spy. Alright so those are the the key gamma levels that's for SPX. Let's take a look at a another SPX chart. This is for today. So this is a one day one minute chart. Alright so this is showing the levels that are in play for today. So just a gradual uptrend all day SPX is now trading just below the upper daily expected move shown with the dash blue line and this combo L2 level is in play also and then here's the upper weekly expected move. Alright let's take a look now at book map. On this chart I have the SPX level shown and my cloud notes columns. So there's that 4573 combo to level that combines SPX and spy gamma into one level and there's the 464565 level that was noted as resistance in the spot gamma AM founders note and then I have key spy levels. There's the spy 455 level that did act as resistance earlier today and now SPX ES is up around the again the upper daily expected move for SPX. The spy 456 level and also the big round number for ES 4600. Alright so that's the ESP 500 we'll talk about set ups in a few minutes. Those are the levels in play. Also this morning the spy 454 volatility trigger did act as support and a launching point for a move higher and again we'll talk about set ups in a few minutes. So these are the levels that are in play so far really price ranging between the spy 454 volatility trigger and the upper daily expected move also the spy 456 level. Alright so I talked about shifts and levels for SPX. The put wall shifted substantially lower that is not really much of a concern at so far out of play and more significantly the absolute gamma strike did shift higher to 4600 and for spy the volatility trigger shifted higher from 452 yesterday to 454 today and that was the only shift higher for spy. Alright that's the ESP 500 the levels in play for today minor shifts in levels the absolute gamma strike for SPX and the volatility trigger for spy. Alright let's take a look at NASDAQ and I'm going to take a look at a chart for QQQ to take a look at the levels that are in play for today. Alright so these are the levels that are in play for today for QQQ and just a reminder the call wall is much higher at 390 not in play today and it looks like the 377 as well as this combo L1 level just right below 377 was the support and launching point for the QQQ to move higher and this is the volatility trigger at 379 and that acted somewhat as resistance and now price is trading above that. So those are the QQQ levels that are in play for today. Let's take a look now at NQ futures and again I have my own cloud notes. I'm showing the QQQ 380 level there that is the absolute gamma strike for QQQ. There's the 379 volatility trigger just below the NQ upper daily expected move. That level did act as resistance earlier today. Now price is trading above sorry about that. So here is the cluster of levels that did act as support this morning. That is the NDX 15-475 call wall level. There's a combo level just above that and then also the QQQ 375, 377 level. So those are the levels that are in play for the NASDAQ and again we'll talk about setups in a few minutes. So shifts in levels for the NASDAQ there were none. No shifts in levels for NDX or QQQ. So for QQQ the absolute gamma strike remains at 380, the call wall at 390 and the put wall at 375 and the volatility trigger at 379 and so far today the volatility trigger and absolute gamma strike are in play. Alright let's take a look at some other data. Take a look at gamma notional. This is market makers position on the gamma curve at the beginning of the day. So again market makers position on the gamma curve for SPX, SPY, NDX and QQQ. So this is showing for SPX market makers position on the gamma curve is positive and again in the positive gamma environment market makers have to trade against price to hedge their delta exposure and that tends to subdue volatility. So that's SPX and slightly negative for SPY and also negative for QQQ. But all these numbers did shift higher from yesterday so gamma notional for SPX became more positive and for SPY and QQQ less negative. And I mentioned the build and call gamma for the S&P 500 especially noted with the 4600 level for SPX. Let's just take a look at that. So here's SPX, the absolute gamma strike, absolute gamma chart. What this is showing is gamma, we'll just zoom in on this a bit. So the orange bars are showing call gamma or positive gamma and below the zero line the blue bars are showing put gamma or negative gamma. So that's the 4600 level right there and that is the strike with the largest absolute gamma. So gamma has been building at that level. All right let's take a look at some setups now. I'm going to start with the S&P 500. What this chart is showing, I'm going to zoom in. So I'm just showing mostly the regular trading hours. What this chart is showing is price with a white line for SPX and this is the hero signal and it's showing options, trades and market maker the resulting market maker hedging activity for a combined signal of SPX, SPY, XSP, and ES futures all into one combined signal. So if you're trading the S&P 500, this is what you want to take a look at. All right let's zoom in on this chart now. So I'm going to focus on the morning session and note the, go focus just a little bit more here. Also note the rising hero signal, kind of choppy but gentle uptrend just like price. Options traders taking positive delta positions. Market makers are taking the opposite side of those trades and they have to buy futures to hedge their delta exposure and that was a big contributor to price moving higher today. All right we'll take a closer look at calls and puts and zero DT in just a minute. So what I want to focus on really here is just the setup. So the thing to do for this morning was just to look for, with a rising hero line, just to look for pullbacks, places to get long. So there's around 1010, 1030, just before 11, pullbacks to get long, let's go take a look at book map, go back to the S&P 500. So we'll zoom in on the morning session. So if you didn't catch the move higher right at the open, there were several pullback opportunities mainly to VWAP that's shown by this blue line there that's VWAP. So pullbacks to VWAP, multiple pullbacks gives you long entries as traders were taking positive delta positions in the S&P 500 futures or in SBX by XSP and ES futures. All right let's see what traders were doing. So let's go back to hero and hero stands for hedging impact real-time options. So this is the morning session up till from about 9.30 cash open until just before noon. So let's separate out now puts and calls and this is pretty typical. Traders buying calls and buying puts and in this case call buyers more aggressive and it's pretty obvious from looking at that line that is what is driving price today. So the notional value there is positive 2.28 billion versus puts at about minus 994 million. So they're buying calls and buying puts, call buyers more aggressive and that is helping to drive price higher. So there's the morning setups in the S&P 500. Let's go back, take a look at the total signal. Now we can also take a look at the zero DTE options trades. Those are options trades that expire today that shown by this green line here and it looks like about two thirds of the notional value is zero DTE trades. Let's go back to book map. Note this move up finally broke above the 455 level consolidated consolidated for about an hour and then right around 1245 moved up to the this cluster of levels above. All right. So that's the S&P 500. One interesting thing to note here is the stop run that fueled this breakout move higher shown by the rising yellow line there. Also these numbers with a small green dot above price, those are all buy stop orders. And note that large traders were buying this move with iceberg orders. That's what they used to hide their size that's shown by this rising light blue line up until about 1245 and the light blue line starts to fall. Let's go back and take a look at hero zoom out to the full day. So we know that larger traders started selling with iceberg orders just after 1230. Let's see what options traders were doing at the same time. So here options traders started taking negative delta positions came in and started buying again and now they are taking negative delta positions for sure. All right. This is what I resumed all the way showing the entire day. So it looks like they have stopped buying calls and continue to buy puts and note now the total numbers for the green line, the all zero DTE matches up pretty closely with the total all expressions. All right. So morning set up kind of a slow grind up but pullbacks to VWAP. All right. Let's take a look at NASDAQ. I'm going to zoom in on the morning session. So NASDAQ the options traders as opposed to the NASDAQ options traders as opposed to the S&B 500 were taking negative delta positions from the open as price was increasing. Set up a short just right around 10 a.m. and then notice as price drops options traders started taking positive delta positions just around 1030 and then price reverses higher. Looks like about 25 minutes later. So there was a divergent short and a divergence long in NASDAQ. Let's go take a look at a book map. All right. So Captain Crush asked is this chart chart on TOS? I'm not sure which chart you're referring to. This chart is not. This is book map global plus. So the I did show at the beginning of my presentation I did show thinkorswim charts TOS thinkorswim but the charts that I'm looking at now are book map global plus and spot gamma hero which is on the web. All right. So this is NASDAQ. Let's zoom in on the on the morning. So here is the here's that divergent short remember in in hero options traders were taking negative delta positions from the open price increased up to the just below the QQQ 379 volatility trigger level and reverse lower and then as price was moving lower traders started taking positive delta positions and price reversed higher. Remember between VWAP and the NQ 15600 level and Captain Crush asked is are there any videos showing how to set up book map like mine and and no I'm sorry I don't have any specific videos you can contact me in discord. My name at discord is Doug P. and I do provide mentoring I can provide you with an individualized session to help you set up your book map chart. So just contact contact me and discord and in a cat ask can you put a view on bank nifty. I'm not sure what that is. All right. So there was a divergent short set up this morning and a divergence long in NASDAQ. All right. Let's go take a look at at hero again. So right now it looks like just about 130 145 traders started taking negative delta positions in NASDAQ. And we'll talk more about the life market in a few minutes up until then the options traders were supporting along in NASDAQ. Well let's take a look at some stocks. So first of all let's take a look at stocks that are reporting earnings today and as Google and Microsoft. So we'll start with those. So here here's Google and it looks like options traders set up along just around 11 a.m. a little bit difficult to read. I have I have Google here because of its large influence on the on the NASDAQ but don't trade it that much. So let's take a look at book map. It looks like it really caught a caught a bid around 1230. We'll see what options traders were doing. So right around 1230 options traders started buying calls that show them by the rising orange line there and price responded higher. So let's go to book map. Take a look at Google. So Anaket says bank nifty is contract traded in Indian markets. Sorry I don't look at Indian markets. Book map discord does have a channel for Indian the India markets and that there may be some other you know they may be they may know how to look at the Indian stock market. I don't know I just mainly trade S&P 500 NASDAQ and large cap tech stocks and that's what I focus on. So an hero which is what I use that I don't think there's any any that I know for sure there are no Indian stocks no Indian indexes in in hero. So here's Google really choppy morning caught a bid right around 1230 let's take a look at Microsoft. Let's go take a look at hero for Microsoft. So for Google net the signal for today is is pretty flat just slightly negative. So slightly negative notional value. Let's go take a look at Microsoft now and it's another story and Microsoft notional value positive 117 million traders taking positive delta positions ahead of earnings. Let's see what they're doing. So they're mainly buying calls. There was a large block order mostly maybe multiple block orders put sellers and then call buyers. So the both numbers are positive here. So net traders are selling puts and buying calls ahead of earnings of Microsoft. Right. Let's look for setups. So the first was a confirmation long just right around 935 traders were taking positive delta positions price jumped up and then price started to consolidate and move down as traders stopped and then started to move up again just before 11am as traders started taking positive delta positions again. So let's go take a look at book map. So here is the if you cut the move at the open long entry right around 346 that Microsoft came back down to retest of the 346 level and moved higher and note this these bright red dots these numbers that showing a sell sweep down to that level and you can see the the pink volume dots aggressive sellers down to that level a sell sweep and then aggressive buyers start to come in. You can see the shift from pink dots market sell orders and shifting to market buy orders. So pink dots to green dots and options traders supporting the move higher from 346 up to 350. Let's go back and take a look at hero. So no gamma levels and play for Microsoft but bullish hedging flow bullish order flow. All right. So captain crushed ask what server are you on a discord. So my channel the options dash Doug channel is in the book map book map discord but you can find beyond on discord. Just again my name is Doug P and you can just contact me by direct message. All right and karma FX thank you for thank you for the helpful information. All right. So karma FX wants to look at Apple Metta and Nvidia and Nvidia and Metta are on my list. So let's take a look at Metta and this was a nice divergence long. So who knows the rising hero signal from the open hero continues to rise. Price moves down. This takes about 30 minutes to play out and then price reverses higher. Let's go take a look at book map. All right. Captain crush. Great. All right. So here is Metta kind of a choppy reversal here. Good entry at the retest of the two ninety three level as options traders were taking positive delta positions. We'll take a quick look at Apple. I didn't didn't see much earlier today. Pretty narrow range in Apple. Not much going on. Let's take a look at a hero for Apple. So not much here on the other hand Nvidia. So a couple of great setups here in Nvidia today. The first was right at the open. Let's zoom in on this and note the strong correlation between options trades hedging flow and price action. That's pretty typical for Nvidia. Note here the 450 key gamma strike and that was the launching point for a sharp move higher. Traders were buying calls and selling puts at the open. And right now up well this is up until about just after 12 o'clock. Pretty equal numbers. Both positive traders selling puts and buying calls and Nvidia looks like calls are have a little bit closer correlation to price action. So when traders buy calls market makers sell the calls they have to buy stock to hedge their delta exposure and that can drive a stock price much higher. All right let's take a look at book map. So the entries were just at the open pullbacks and then a deeper pullback about 1050 as traders they stop buying calls but continue to sell puts. And there's the total signal. Let's go to book map. So in contrast to Apple and video was a big mover today. So I thought for Nvidia the hedging flow and order flow were really much easier to read than the S&P 500 or the NASDAQ which both chopped around quite a bit in the morning. So here was the initial move higher as traders were aggressively buying calls at the open. First pullback second pullback and then this deeper pullback to 456 and you can see the shift in order flow here. Aggressive sellers pink dots on the way down and the shift to green dots aggressive buyers as well as call buyers and put sellers help to move price up to the 460 level and 460 was the what's the target for the first move higher this morning. Note all the liquidity in that level that comes in at the cash open and this liquidity can act as a magnet for price. All right. So that was Nvidia nice long setups and Nvidia today. Well let's take a look at NASDAQ Tesla I'm sorry and notice the very bearish order flow all the all the pink dots all the aggressive sellers. Let's take a look at hero and see what options traders were doing. So now let's go to go to Tesla. So this is a very interesting divergence I thought this is not typical for for Tesla seeing price move lower while hero is moving higher. This is like an index type divergence that takes this long to play out. So while aggressive sellers were selling Tesla options traders were taking positive delta positions. Let's see what they were doing. So they're mainly selling puts that show them by the rising blue line. Maybe if they were aggressively buying calls that would have had a stronger influence on price but eventually eventually price reverse higher as options traders continued to to sell puts. So there's Tesla reversal at the 266 level. Let's just check on gamma levels. So 270 is the put wall the key gamma strike and the hedge wall. So key 270 is a very important gamma level for for Tesla. All right. I think I covered all the stocks that I wanted to as well as all the stocks that karma FX mentioned again if anybody has any other stocks that want me to take a look at please let me know otherwise we'll go but we'll take a look at the S&P 500 and NASDAQ. Oh one thing there was a question in and just discord this moon this morning from Leo about my VWAP setting. All right. So I'll take a look at that in just a moment and serendipity wants to take a look at Rivian. So I don't have Rivian in book map but I can take a look at it here in hero. We'll see what options traders are doing. All right. So in the morning traders were taking positive delta positions in Rivian. So I think Rivian has been in play. It's not a stock that I typically follow but there it is. So traders were buying calls this morning shown by the rising orange line. And as they stopped buying calls price started to move lower. So so far for today it looks like Rivian is trading back around the the opening for today. And options traders have not done what much with puts and then they started selling calls. There was a large block order for selling calls. All right. So that's Rivian. Let's take a look at the S&P 500 and you're welcome serendipity. All right. So this is the S&P 500 traders continue to take positive delta traders continue to take positive delta positions. Price continues to grind higher. Let's go back to book map. So starting around 1230 1245 larger traders started to fade this move with iceberg orders shown by the falling blue line. That number is also negative for the day. And the move is higher as being fueled by buy stop orders as well as aggressive buyers both stops and CVD are positive for the day. These are cumulative numbers. So CVCVD starts at CVD starts at the open from yesterday afternoon. That's the data that I have. And then the market buy order data for stops and icebergs start when I open book map around 7 a.m. Eastern time. So stop orders and aggressive buyers feeling the move higher. Larger traders are fading this move. And so far net on the day options traders are supporting the move higher. All right. Let me check for questions and protocol forex ask tips for market structure. Synthetic indices derivative synthetic indices in terms to consider when considering to consider when analyzing with market structure. So I'm not sure I understand your questions. If you're looking for market structure Bruce the director of education at book map he has a live webinar on Monday Tuesday and Friday at 10 a.m. And that's his specialty market structure micro structure. That's something that he looks at in detail. So if that's what you're looking for I suggest you take a look at Bruce's webinars. He's live again Monday Tuesday and Friday at 10 a.m. Eastern time. And then the recordings of his sessions are available on the book map YouTube channel. All right. So that is the S&P 500 continues to grind higher toward the upper daily expected move. Let's check on NASDAQ and NASDAQ continues to grind higher. Pretty similar scenario to S&P 500. Larger traders have been selling this all day with iceberg orders and the move higher up above the upper daily expected move fueled by aggressive buyers and stop orders. My stop orders both positive iceberg orders negative. Let's see what options traders are doing. So there was a dip in hero right around 130 to 2 and then options traders started taking positive delta positions again. Notice that price dipped a bit leveled off and then started to move higher as options traders started taking positive delta positions again. So my stop orders aggressive buyers as well as options traders all supporting the move higher. And this move higher really began for NASDAQ just right around 1050. As traders started taking positive delta positions more aggressively and karma FX as I shorted my long because I surpassed my daily profit target. Nothing wrong with that. And now I wish I would have stayed in longer. So you know that that happens sometimes. But again nothing wrong with taking profits when you hit your target. Let's take a look at the S&P 500 again. And pretty similar scenario here for the S&P 500. As heroes started to move lower price moves slightly lower and then started to move higher as traders started taking positive delta positions again just right around 2 p.m. Let's go take a look at book map and karma FX. I'm glad you're learning so much. I'm glad this helps. And now the ES heading up toward the upper daily expected move at 4607. All right. Nice steady uptrend in the S&P 500 multiple pullback entries all long setups. All right. My time is up. I want to thank everyone for watching. Thanks for your questions and comments. And remember tomorrow first of all today Microsoft and Google report earnings after the close today that could have a strong influence especially on the NASDAQ. And then tomorrow the F1C announcement at 2 p.m. That will be during my session. So I'll go through the positional analysis and setup review up until just a minute or two before 2 p.m. And then we'll stop and take a look at the live market. And then we'll check the Fed watch tool to see what traders are expecting for tomorrow. So thanks again. Thank you very much for your questions and comments. Thank you for watching and I will see you tomorrow. Bye.