 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, all Bookmap limited materials, information, and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations. Risk Disclosure, trading futures, equities, and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. 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 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 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 to confirm my thesis and for setups for entries and exits. And finally, on topic questions and comments are welcome and I will be watching both the options-doug chat channel in Discord and the chat in YouTube. So again, please post your questions and comments and I'll try to answer them. All right, let's get started. What I want to cover today, first I'll go over news, economic data and events for the week. Then I'll go over my positional analysis, talk about my plan, and then go over some setups. So first of all today there were a couple of data items. The factory orders came out at 10 a.m. and I was listening to CNBC. They were talking about jolts as well. Let's just see if that was listed. So here is the, here on a data feed, here is the factory orders came in a little bit less than expected. And then there was, oh here's the jolts number, a little bit lower than forecast as well. All right, so the numbers that came out this morning had a little bit of an effect on the market. Initially bullish and we'll take a look at that in just a few minutes. So for the rest of the week, tomorrow there's PMI data out at 10 a.m. and then Friday the employment situation report comes out at 8.30 a.m. Eastern time and that is a stock market holiday. I believe the futures will be open probably until midday but the, but Friday is a stock market holiday and the employment report comes out anyway. All right, let's talk about my positional analysis now. And this is the S&P 500 futures, ES futures and book map. And before I dig into this chart, I'm going to take a look at a higher time frame. This is the SPX in a 20-day one-hour chart on thinkorswim and showing just price and key levels. And these are spot gamma levels provided to spot gamma subscribers. And let me just point out a couple of primary levels. First, here's the put wall. That's the strike with the largest net negative gamma that can be expected to act as support. And here is the, both the 4000 level, that's the absolute gamma strike or key gamma strike. The strike with the largest absolute gamma that can be expected to act as support, resistance or a magnet for price. And then just above that at 4005, that is the volatility trigger. And that's spot gamma's proprietary gamma flip level. And below that level, that indicates that market makers are position on the gamma curve is negative. And that means they have to trade with price to hedge their delta exposure. And that tends to increase volatility below that level. And then above that level, the current situation, market makers position on the gamma curve is positive. And they have to sell futures as price increases to hedge their delta exposure. So they're trading against price in a positive gamma environment to hedge their delta exposure. And then up above is the call wall at 4150. And that's the strike with the largest net positive gamma. And that can be expected to act as resistance. So those are the primary levels that are in in range for the next few days at least. All right, so that is a 20 day one hour chart. Let's take a look at a another chart from thinkorswim. And this is just for today. Showing this is a SPX again, just showing these levels in a one day one minute chart. And the levels that are in play for today. Here's the 4100 SPX 4100. That's an excuse me, an L three level, large gamma three, three being in the middle of the range of one, the highest five, the lowest. And that was expected to act as support today. And it did for a while until it broke around 12 o'clock. Now price is recovered and it's trading above that level. And then here is the 4125 level. And that was also noted as support in the spot gamma AM founders note. And then here's the call wall up above again at the 4150 strike. So those are the levels that are in play for today. And I have the same levels on my book map chart. And I have two columns of notes. And the first is the spot gamma cloud notes. These are provided again to spot gamma subscribers. They're provided in a variety of platforms. And I use thinkorswim and book map. And this is showing this combo level 4125 that was expected to act as support as well as the 4100 level. And this combo level is a combination of spy and SPX gamma converted to an equivalent SPX number and then converted to an equivalent ES number. Right now, spot gamma is using a 30 point difference between ES and SPX. And I calculated a 29 point difference. So I'm showing my levels just one point lower. And I'm showing my levels here in this C levels column. These are my cloud notes. And here's the 4100 level. I'm also showing primary spy levels. There's the spy volatility trigger at 409. And then the spy 410 key gamma strike. So those are the levels that are in play for today. And I'll talk more about the S&P 500 in a few minutes toward the end of my presentation when I go over setups. All right. The next thing I want to talk about is shifts in levels. Excuse me just a second. All right. Shifts in levels. For the SPX, the only shift was the volatility trigger moving lower from 4045 down to 4005. And I showed that on that thinkorswim chart. And for spy, there were significant shifts higher in levels. And first of all, the volatility trigger shifted higher from 406 to 409. The call wall shifted higher from 410 to 420. And the key gamma strike shifted higher from 410 to 400. So I'm talking about spy here. And I want to show, let's go to the spy gamma equity hub. And let's take a look at spy. I'm going to zoom in on this. And this is showing the key gamma levels, key daily levels for spy for the last 10 days. And I don't think I've ever seen anything like this for spy. First of all, there's the increase in the key gamma strike. Let's look over the last 10 days. The increase in the key gamma strike from 390 up to 410. And then the for the last four days, five days, the shift higher. This is noted as the hedge wall here. It's the same for spy. It's actually a volatility trigger gamma flip level. And that has increased. So so far, this is all bullish. And then also for the last five days, this increase in the call wall, this is all bullish. I've never seen five days in a row of an increasing call wall in spy from 402 to 405, 407, 410, finally up to 420. And then also the increase in the put wall from 390 to 400. So all very bullish for spy. But that pace of increase and all these levels just can't can't continue. I don't think maybe so, but at some point it will come to an end. So anyway, this is something that I have not seen before, especially in spy, you might expect something like that in a very high volatile high beta momentum stock, but not in the S&P 500. So anyway, that's the the shifts level shifts higher in levels. The only level again that shifted higher for the SPX was the volatility trigger. And then for spy, we just saw the all these increasing levels. All right. And for QQQ, there were no, no shifts higher, no changes in levels. So here's QQQ key gamma strike remains at 320. Hedgewall or volatility trigger remains at 319, call wall at 330 and put wall at 285. All right, let's take a look at the the gamma charts now and some other charts and we'll see where these levels come from. All right. So first of all, for SPX, this is the 4000 key gamma strike or absolute gamma strike. And that's pretty obvious. The 3,800 put wall is down here, the strike with the largest net negative gamma that can be expected to act as support. And then here is the call wall, the strike with the largest net positive gamma. And that can be expected to act as resistance. And the interesting thing to note here is the build in call gamma above the 4000 level. That's shown by the, this is the zero line here. Orange bars are positive gamma or a call gamma above the zero line. And below the zero line, the blue bars are negative gamma or put gamma. So this is showing the build in call gamma above the 4000 level. And RJ, I'll answer your question when we get to the, get to spy. All right, so that is the SPX. And now we'll get to spy. And the same thing, this is the absolute gamma levels for spy. Positive gamma or call gamma shown above with the orange bars and negative gamma or put gamma shown below with the blue bars below the zero line. So 410 is now the key gamma strike, the strike with the largest absolute gamma. That's pretty obvious. 400 is the put wall, the strike with the largest net negative gamma. And then here's the 420 strike. That is the call wall, the strike with the largest net positive gamma. And that's also pretty obvious. All right, so RJ asked, if the 409 volatility trigger holds in spy on a retest, would we expect to be now in a negative gamma environment and look for gamma expansion? So let me take a, let's go take a look at the spy chart. And I assume you're mean, meaning a retest from below and a move lower. So let's just go to bookbap. We'll take a look at spy. So in that case, what we would look for is, yes, spy would potentially be in a negative gamma environment. And that means that traders are long puts in this portion of the gamma curve. Market makers are short puts, and they have to sell futures as price decreases to hedge their delta exposure. And I would not expect that to happen instantly just on a break of the 409 level. We have to look at SPX also. And I would look for a, I think spot gamma may be looking for a break below SPX 4000 before market makers position on the gamma curve for the S&P 500 in general is negative, leading to volatility expansion. All right, let's get back to the gamma levels now. So this is something to watch though, that this so far it looks like the volatility trigger is acting as resistance. And we'll look at setups in a few minutes and see what options traders are doing. They have not provided, they have not been in sync with price today so far. All right, so those are the gamma levels for SPX, spy. Let's take a look at the NASDAQ now. And for NASDAQ, we look at QQQ. Let's try this again. Okay, so there's QQQ, the gamma levels. And recall for QQQ, there were no shifts in levels today. So here's the 320 key gamma strike. Strike with the largest absolute gamma. And the put wall remains at 285. The strike will largest net negative gamma. And then the call wall up at 330. All right, let's go back to SPX and let's take a look at, while we're on this page, let's take a look at Vana charts. So we'll start with SPX. And this chart has changed somewhat. And Brent, the founder of Spot Gamma, did a presentation yesterday for subscribers, as well as posted a video on YouTube about the Vana model. So there are two curves here, the kind of the dark or the gray, whitish gray colored line, this one right here. And this is showing the delta only. So this chart is showing market makers delta notional or delta exposure as price changes. Delta notional shown in the vertical axis and strike price shown in the horizontal axis. And what this is showing is how market makers delta notional changes with price. So not considering anything else, this is showing as price increases from around the, oh, let's say this looks like the bottom of the curve around 4068, as price increases, market makers delta notional will increase. And they have to sell futures to hedge their delta exposure. And that is typical of a positive gamma environment. So again, they're trading against price to hedge their delta exposure. In the second curve on this chart, this pink purple line is showing how market makers delta notional changes with changes in price and implied volatility. And the change in delta with a change in implied volatility is the Vana effect. So this is showing that again, let's take a look at the positive gamma environment. And this is showing that in this case of a positive gamma environment, the change in implied volatility is not going to have much of a change in just pure delta. So that there's no additional Vana tailwind from price increases in this positive gamma environment. And then on the other hand, as price decreases and implied volatility increases, market makers will have to sell futures to hedge their delta exposure. So this is adding in the implied volatility change component to this, showing market makers delta notional will increase at a certain point as price drops and implied volatility increases. And they will have to sell futures as price drops. And that is typical of a negative gamma environment. Right, I hope that makes sense. So let's take a look at the Vana model now for spy. And just shifted slightly from SPX, again showing as price moves higher. This is showing the 414, 415 level. As price moves higher, market makers will need to sell futures to hedge their delta exposure, again in a positive gamma environment. And just the opposite as price decreases and implied volatility increases, market makers will need to sell futures to hedge their delta exposure. All right, then finally, let's look at QQQ. All right, so there's the QQQ Vana model. All right, again, I hope that makes sense. Now let's take a look at some data and we'll take a look at the gamma notional. This is market makers position on the gamma curve. And this is showing, I look at SPX, spy, and QQQ. So we're looking at this number for SPX, positive 3.75 billion for spy, positive 7.8 billion, and for QQQ, 3 billion. So note, these numbers are all positive, indicating market makers position on the gamma curve for these three indices is all positive. So again, this indicates for an index that market makers position on the gamma curve is positive. And this means that traders are short calls, market makers are long calls, hence the positive gamma, and they have to trade against price to hedge their delta exposure. And these numbers, and this is this is pretty new for this year. Most of the year, most of these these indices have been a negative gamma environment. So these numbers did, numbers did shift more positive today. Yesterday, SPX, gamma notional was 3.5. Today, it's positive 3.7. Spy shifted from 7.1 billion to 7.8 billion. And then QQQ shifted higher from 2.9 to 3 billion. Okay, that is that's most of my planning for the and positional analysis for the indices. And then for stocks, my starting point is this key gamma strike list. These are all the stocks on my watch list. And I'm showing the key gamma strike for the previous day that shown in the far right column, the E column, and then the D column, I'm showing the current key gamma strike. That's for today. And then I'm color coding these green if the number increase their spy increase from the previous day. And then I color code the number red if it decrease from the previous day. All right, so the only significant change here, the only change really was spy. And I've talked about that before showing all the levels that increased in spy. And also apple. All right, now there are other levels, you know, as we saw in equity hub, other key daily levels, the volatility trigger, the hedge wall, the call wall and the put wall as well. And there were some shifts higher and lower, mostly, mostly lower actually, and call walls and some other levels in stocks. But these are the levels that I track in this spreadsheet, just the key gamma strike. So my thesis or plan for the day was generally looking for consolidation. And especially in a couple of stocks, Microsoft, and for Microsoft, the hedge wall drop lower, the call wall drop lower, and the put wall actually moved higher. And for Nvidia, the put wall move lower. And then for Tesla, both the hedge wall and call wall move lower, and the put wall moved higher. So let's look at those stocks, those were the primary stocks that I was watching today. So we'll start with setups now in those stocks. And we'll talk about the S&P 500 at the end. I thought they were better, easier to read stocks if stock setups, if you're using hedging flow as an indication. Certainly order flow and the S&P 500 has been been bearish, but hedging flow has been bullish. Traders fading the move. So anyway, let's start with Microsoft. And what I was looking at is this 290 key gamma strike call wall acting as, first of all, a price target in the morning, and then as resistance. So let's go take a look at Hero. I'm going to go to Microsoft and note the fairly weak hero signal here. This slider is showing how the hero signal for Microsoft compares with the last 30 days that's shown by the entire length of the slider, as well as the last five days, and that's shown by the colored portion within the slider. So it's not as weak as it has been, but it's close. So that is a one signal that confirms a short. All right, so let's I'm going to zoom in a little bit. So first of all, in the morning, the rising hero line definitely confirms along up until about 10 o'clock. So that is the a long set up up to that 290 call wall key gamma strike level. And then hedging flow turns bearish as price hits the target at the call wall 290 call wall key gamma strike setting up a short. And let's just see what traders were doing. So as price reached the 290 level, traders stopped buying calls, finally started selling calls, and they were started buying puts as price moved up toward that level. So the call buyer set up a long up into that level. And then they stopped again, stopped buying calls, traders continued to buy puts, and price moved lower. And let's go back and take a look at book map. I'm going to zoom in on the first 90 minutes. So here's the the long set up actually trend line higher, break above, VWAP price goes right up to the 290 call wall key gamma strike. And again, remember options traders were stopped buying calls and were continue to buy puts. And there were a couple of actually about three tests of this 290 level three or four tests of the 290 level. And now it looks like prices continuing lower is finally broken below the 288 level. All right, so that's Microsoft a hero helping to confirm at a bullish set up in the morning, and then a bearish set up in the afternoon. So the next one on my list again remember, in pre market planning, I noted that for Microsoft, both the hedgewall and call wall move lower, and the put wall moved higher. And overall, I actually interpret that as certainly not bullish and slightly bearish. All right, let's take a look at Nvidia and note Nvidia, the absorption right, right at the open at the 280 call wall key gamma strike. Price immediately dropped. Move back up and retest the 278 level several times. After hitting this 275 liquidity target in the morning, it made it down there again. And now it looks like prices trying to recover. Let's go take a look at hero. So there are three good short setups here in Nvidia. First thing at the open, if you were fast, then on this first test of the 278 level, and then there were a couple more tests of the 278 level with the price target at again 275. Let's go take a look at hero. Go to see what. So for Microsoft, just for reference, the hedging flow continues to be bearish. Let's take a look at Nvidia. And this is what I was looking at in the in the morning Let's take a look at we'll take a look at the full session here. So first of all, very bearish hedging flow from the open, recover higher price recovers. And then I'm going to zoom in just a little bit. It makes this more clear, this divergent setup. So here's the multiple test of the 278 level. See if I can draw that multiple test of the 278 level while hero is moving lower, setting up multiple, multiple shorts, finally hitting the 275 liquidity target. So this was a really nice divergent setup. Let's go back to book map. And I just a reminder, I say this almost every day, but I I'm only presenting on one screen. So I have to jump back and forth between book map and hero. But when I'm trading, I'm looking at both on on two screens at the same time. So I don't have to jump back and forth. I can see hero and book map at the same time. So again, traders were taking negative delta positions. And every test of the 278 level after this first drop was a good short entry with the 275 price target. All right, then the next setup was Tesla. And I hope I think everyone probably saw this. Just another bearish day in Tesla, a quick move up and then drop lower. Test of VWAP, trend break. And note the, let me zoom in on this. We'll zoom into about from 930 to 1130. And the shifts in order flow are pretty easy to read in Tesla. Note the my sweeps up to the around the 19850 level. And then order flow shifts bearish. Note the shift in green dots to pink dots. These are volume dots in book map. And they're showing buy minus sell. And a pink dot indicates there are more aggressive sellers, market sell orders than buy orders. And the shift in order flow is pretty easy to see in Tesla. This is pretty typical of Tesla. So the shift in order flow break below VWAP, these small red dots are showing a sell sweep. Those are aggressive sellers. Price consolidates a little bit of the 194 level. Note the green dots coming in. Price moves back up to VWAP. Then the aggressive sellers start to come in again. The trend break and price continues lower to the first primary target at the 193 hedge wall level. Price consolidates around that, makes a couple lower highs and then heads toward the next primary target, the 190 put wall. And note the high liquidity at that level. I'm looking at the, this is the heat map and in the heat map and book map showing limit buy orders that level. And those limit orders above and below typically act as magnets for price. All right, there's a question in YouTube. Edward asked, does Spot Gamma provide a key gamma strike for stocks in the cloud notes for book map? And unfortunately no. And I have asked that, requested that feature. That would save me a lot of time. So right now what I'm doing, excuse me, I'm updating this manually in a spreadsheet. So for every stock that I have here in book map, I have this cloud notes column. And I have to fill out a spreadsheet. I do this every morning and change these key levels and all these stocks. So it takes a few minutes. I would certainly, it would be great if Spot Gamma did that. Maybe they will someday. But right now they do not. All right, so those were all good setups. Tesla obviously the by far the best setup, the highest range. Let's take a look at hero for Tesla and see what options traders were doing. So here's Tesla. Overall hedging flow is bearish with some significant moves up. And this is the move up and the retest of the test of VWAP right around 1015. And let's see if we can get more detail, more information from puts and calls. So we can see more detail one options traders were doing. So initially call buyers drove this quick move up and traders started buying puts. They stopped buying calls, price moved lower. So not quite the nice divergent setup that I showed in video, but still overall negative, negative hedging flow. All right, so that's Tesla. And let's take a look at the S&P 500 now. Actually, let's let's take a look at the NASDAQ first. I thought this was a great setup in QQQ. Another divergent short. Here, note the purple hero line makes a lower high, then a significant drop down. And it takes price a while to respond, but price finally starts to move lower as options traders were taking negative delta positions. So let's go take a look at book map now. And let's just see what traders were doing. And this is pretty typical of an index. Traders will most likely see this in the S&P 500 as well. Traders buying calls and buying puts and the put buyers up until around 12, 20, 12, 30 were definitely in charge. So I'm looking at a couple things here. First of all, the blue line, falling blue line showing traders are buying puts. This rising orange line shows that traders are buying calls and they pretty much stop buying calls. This orange line levels off while traders continue to buy puts. And note the vertical line here, large block order, large institutional participant buying a large number of puts. And one other thing that I note here is the number. This is a notional value. So up until this point in the day that we're looking at put buyers are winning. This is my minus 586 million versus positive 291 million. All right, let's go take a look at book map for QQQ. And remember there is that divergent setup, the sharp drop lower in hero setting up this reversal short, trend break, and the order flow definitely shifts bearish. Note the pink dots there, bisweep up into that level. A lot of these are small bright green dots, the bisweep, and then the volume dots, market buy orders, and order flow definitely shifts bearish. You can see all the pink dots coming in. And then a move below VWAP down to the 319 volatility trigger and this combo three level that is a QQQ index, NDX combo level. So nice short divergent setup there in QQQ. All right, now let's look at the S&P 500 and we'll start with the futures. And here's the reaction right around the 10 a.m. data and the price reverses lower. So this 4125 level that was expected to act as support actually acted as resistance right here and price move lower. And this is confirmed by order flow and book map. You can see the more pink dots coming in, a reversal lower below this 4125 level and also VWAP. So price moves below VWAP and is trading below VWAP. And there are some additional clues in order flow. First of all, I'm looking at the yellow line here. These are sell stop orders helping to fuel the move lower. And then also this falling light blue line, these are iceberg orders that large traders use to hide their size. And this is somewhat unusual. Typically, larger traders with iceberg orders will sell weakness and buy strength, but in this case, they're selling with iceberg orders helping to move price lower. So that's the setup and book map for the ES futures. And let's take a look at the SPI. So bearish order flow and SPI as well. There's the trend break, the break below VWAP. Test of this 4125 level, I have both the SPI levels as well as SPX levels marked on this chart. So for example, here's the SPX 4100 level. Now let's go take a look at hero today for the S&P 500. So I'm going to go to the this is the signal for the S&P 500. Looking at it, this is a combined signal of SPX, SPI and XSP. And XSP is not significant compared to SPX and SPI. So this is essentially just SPX and SPI options trades. And this is the signal that I typically look at for if I'm trading any form of the S&P 500, whether I'm trading futures, SPI shares, SPI options or SPX options. And I thought this was somewhat confusing today that traders were initially right after the open here is the right around here is the cash open right around here. And initially options traders confirmed the move lower and then they started fading the move. They were taking positive delta positions as price continued lower. And then that sets up a little bit of a divergence long. And now it looks like they are options traders are more in sync with price or price is in sync with options traders price moves up. And now options traders are starting to to fade this move. So they're selling strength taking negative delta positions. Let's just go let's take a look at at SPI. So it looks like what RJ was asking talking about is this 409 volatility trigger for SPI. It looks like that did act as resistance and price is moving lower now. Trend break, some bearish order flow comes in, retest of the 409 volatility trigger and then price moves lower. So so far now this afternoon that 409 level is acting as resistance. And as RJ asked this level could indicate a start of a volatility expansion and helping to move price lower. Let's go back and take a look at the at the Banta model. Take a look at go to SPI. So this is showing a shift in this volatility ingested pink purple curve. This is showing that now in this case that market makers will have to sell futures to hedge their delta exposure as price decreases. So RJ that was a good catch, good question. And let's just take a look at let's take a look at VIX and see what the VIX is doing. So here's VIX for today. Higher on the day it looks like it is about 0.8, 0.8 of a point higher, a little over four and a quarter percent higher and now volatility is starting to rise again. All right this is interesting. Let's just take a actually that that's really all I had today. There was some let's take a look at meta. There was a pretty good setup in meta as well. Short setup, good for a couple of points. And let's go take a look at hero. Go back to hero, go to meta, separate outputs and calls. And this is showing that for meta traders were buying puts. Note this large block order. Initially traders were buying calls, driving price up. This large block order comes in. Traders stop buying calls and continue a bit. Buying puts. Overall hedging flow is bearish, helping to drive price lower. All right, my time is about up. That's all I had. So those were the best setups that I saw today, especially Microsoft, NVIDIA and Tesla for stocks. And then the S&P 500 I thought if you're looking at hero as a confirmation was a little bit confusing. So again the best setups, Tesla of course, NVIDIA and Microsoft. All right, so that's all I have. My time is up. And I want to thank you for watching. Thanks for your questions and comments. And I will see you tomorrow. Thanks again. Bye.