 Hello everyone welcome to options with Doug Streaming live on Monday Wednesday and Friday at 1 30 p.m. Eastern time. So for those of you who may not have attended My webinar earlier this week my schedule has changed. So beginning this week I Am streaming three days a week Monday Wednesday and Friday and before I go any further I need to go through the disclosures General disclosure all book map 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 involve substantial risk of loss and it's not suitable for 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 in book map discord. There's a Notch and Stash Doug chat channel That's a great place to post questions comments and content related to the topics of my channel and The topics of my presentation that I'll just that I'll go over in just a moment. Let me check for questions All right say so it looks like you found the Stroud found the stream in Discord so good Right. I'm also on X formerly known as Twitter. My name there is that Doug plus yesterday. I did post a set up or meta that I talked about or I posted Excuse me a post of the preliminary and the post in discord as well as X So if you're active on X, please take a look give me a like and a follow if you if you find it helpful All right here are the key tenants to my approach for trading This is the basis of my approach for trading I believe that options trades and market maker hedging activity are key drivers of price and many stocks and futures and Especially the stocks that I follow large cap tech stocks the mag 7 stocks as well as equity futures the SP 500 and NASDAQ 100 and for the SP 500 SP X is the underlying index Spy is the ETF version of that index and ES the futures are a derivative of SP X and when traders buy and sell puts and calls an SP X a spy Market makers take the opposite side of those trades and That will hedge their delta exposure with ES futures and for the NASDAQ 100 and DX is the underlying index QQ Q is the ETF version of that index and The futures in Q is a derivative of Ndx and when traders buy and sell puts and calls in Ndx and Q Q Q Market makers take the opposite side of those trades and they hedge their delta exposure within Q futures And nanny asked what is my X link? Here it is right here at Doug plus So there you go nanny at Doug plus All right the focus of my presentation today and the focus of the options dash jug chat channel Is options order flow? The impact of options markets on stocks and futures Which I believe is significant and the influence of market maker hedging flow on price action 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 And the second step in my process is execution I look at real-time order flow and book map and real-time market maker hedging flow and spot gamma hero To confirm my thesis and for setups for injuries and exits and when I talk about setups today I will be focusing on an underlying asset for example for the sb 500 setups can be taken with the s futures spy shares spy options spx options or even es options So your choice Based on how you like to trade your account Again the setups I talk about are suitable for all of those instruments questions and comments are welcome And I will be watching both the Both the options dash jug chat and discord as well as the chat and youtube for your questions and comments Please feel free to post. I'll do my best to answer your questions And hello floyd's garage. Welcome glad you're here. Hello game now, elizabeth Welcome glad you're here say nanny also welcome glad you're here And say let me just make sure you Well, I'll have to do that later All right, so see again my x link is at dug plus All right, here's my agenda for today friday april 5th. First of all, I want to go over news items for today There was a big one the jobs report And then I'll go through my positional analysis for today Then I'll review some setups from earlier today Then I'll take a look at the live market If anyone has any stocks they want me to take a look at when I get to the live market Please let me know and I'll be glad to do that All right, let's get started with news items today again a very big event economic data report 8 30 a.m. Eastern time Jobs report came out And it was Greater than expected non-farm pain rolls Greater than expected also greater than the previous number Let's take a look at the reaction to that. It was Compared to the move afterward fairly muted So there's the 8 30 a.m. Eastern time data release a little bit of down up down And now the sp500 is Has rallied up all the way to around spy 520 spx 52 20 More about that in just a minute. All right, so that's the reaction to the data Yesterday, we'll talk more about the reaction yesterday and in just a minute All right, so very bullish day in the sp500 All right, so let's move on to positional analysis. So again, I'm going to start with the sp500 This is the s futures and book map And before I take a closer look at this chart I do want to take a look at a higher time frame I'm going to go to the underlying index spx So this is spx current rally began last year october 30th the green line marking the Low point to the high point so far And note them. This is the move yesterday. That's a pretty big red bar So that was the move down yesterday Hello, steven. Welcome. Glad you're here And continue welcome. I did post I'll talk about this in In a bit about the scripts that I use to calculate the index relationships. All right, so that's the spx one day chart and thinkorswim Now let's take a look at a one hour chart This is the top of that green trend line high point right around 52 65 for spx This is the move yesterday new sources attributed that to comments by I think one or more fed members That there may not be any rate cuts this year So that that led to a a pretty sharp move lower all the way down to right around 51 50 That was the put wall yesterday Note the put wall did move lower, but that was the put wall yesterday All right. Let's take a look at the levels on this chart first of all the dashed Purple lines are showing the lower and upper weekly expected move. That's based on the options market I update those levels once a week. Normally that that's based on the closing price on friday Last friday was holiday. So this is based on the closing price for spx last thursday Those lines remain in place for the entire week The dashed blue lines are showing the lower and upper daily expected move Also based on the options market based on the closing price of the previous day And I update those levels every day in discord So note this very wide range For today based on the jobs report so the For the day before The expected move for spx was plus or minus right around 23 and a half points Yesterday it was plus or minus 55 points and that was due to the non-farm payrolls So now spx trading within the upper and lower day weekly expected move range It did trade Well below that Yesterday and now has moved back up above the lower week the expected move and now Is above the upper daily expected move? Looks like it is moving down that may not last All right. So the other lines on this chart are spot gamma levels These are proprietary spot gamma levels that provided to subscribers They're available on a variety of trading platforms. This is thinkorswim again a one hour chart 30 day one hour chart I'm going to point out the key day levels First of all the 5000 level That is the put wall that's the strike with the largest net negative gamma That can be expected to access support remember yesterday the put wall was at 51 50 So that level did move lower from yesterday That's also the absolute gamma strike. That's the strike with the largest absolute positive and negative gamma And above that is the volatility trigger. That's at 51 90 That is spot gamma's proprietary volatility 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 stage their delta exposure That tends to enhance or increase volatility. We'll take a look at this in just a minute But market maker gamma notional at the beginning that he was quite negative And now spx is trading above that level Above that level market makers position on the gamma curve is positive In a positive gamma environment market makers have to trade against price to hitch their delta exposure That tends to subdue or decrease volatility And then finally the call wall Is at 5300 that's the strike where the largest net positive gamma that they may expected to act as Resistance So shifts in levels again the put wall shifted lower Volatility trigger also shifted lower just slightly From 52 20 yesterday down to 51 90 so a slight move lower in the volatility trigger from From yesterday Otherwise the absolute gamma strike and call wall remain in place All right, let's wrap up our view of spx with a quick look at a one-minute chart So let's go to a one-minute chart So we can get a closer look at the levels and play for today. So this is the big movie yesterday Again new sources attributing this to Fed member comments This 51 47 level This is new for today. This is a combo one level it was Not in place yesterday. So it looks like this is yesterday the dark shaded portion on the left that was yesterday It looks like looked like spx moved down to that level, but that was not not in place yesterday So really the the level in place yesterday was the 51 50 again. That was the put wall yesterday spx slight gap up today Has been in a steady uptrend since the open Now finding some consolidation. Maybe some resistance. We'll take a look at that in just a minute still above the Upper daily expected move getting pretty close also bug above the volatility trigger And also the lower weekly expected move Are this going to book map now? In book map I have my own cloud notes So I can show the spx levels There's the volatility trigger 51 90 And here's the level that may be acting as resistance This 52 20 level that is spx 52 20 And just below that is the spy 5 20 large gamma 3 level And both those levels together Look like looks like they're acting as resistance And that 52 20 level was noted as resistance in the spot game. I am founder's note So I have my own cloud notes again, so I can show spx levels and spy levels on this chart The spot gamma levels are shown with white lines white labels red text And they're just the round number levels are shown with yellow there. So that is spy 5 14 not a spot gamma level But acting as support I also have key levels for ES There's the upper daily expected move for ES and the lower weekly expected move I do calculate those separately than the expected moves for spx All right, let me check for questions. Hello, billy j welcome glad you're here All right billy j ask if possible, could you please post a link? And copy a paste to your discord Uh billy j I may not be able to do that steven if you're around maybe you could Give billy j a hand In youtube all you want is a link to book map discord And once you join and you'll just find that link on the book map.com website So it should be pretty easy to find maybe a steven if you're if you're listening maybe you can help Billy j and youtube So billy j just go to book map.com. I think it goes go to the moor And community you should find a link to book map discord And uh, you can join there and then find my channel All right, so that's the sp 500 shifts and levels I talked about for the spx again volatility trigger put wall shifted lower and for spy The volatility trigger and absolute gamma strike both shifted lower so slightly bearish shifts lower For the sp 500 All right game now ask can you ask can you explain what combo levels are sure so combo levels combine Thank you, steven All right, so combo levels combine spx and spy gamma weighted open interest into one combined level And here they're shown in terms of An spx price so let's see I don't see a combo level So anyway, they're combining Spx and spy gamma weighted open interest into one level And could be in terms of a spy price or an spx price And on this chart they would be Either And they're converted. I convert them to an equivalent es price. So speaking of that conversion There is an offset between es and spx And today that's around 49 points. So es minus spx equal 49 So I'm showing spx 5200 at es 5249 And note again I do post those index relationships that I'm using in discord every day And I'll talk more about that in a few minutes maybe toward the end of my webinar There have been some questions about that recently All right, let's move on to nasdaq now All right anorag. Uh, hello, welcome I'll talk more about the conversion in uh, in just a minute Or maybe actually toward the end of my webinar. So stick around I'll I'll talk about this. All right. So this is the nq futures in book, ma'am And I do want to take a look at the underlying index charts I'm going to go to qqq first So this is a one-minute chart for qqq Dark shaded areas the price action for the regular The regular trading hours today 436 just a round number in qqq acting as support Also 438 acting as support 439 Note that 440 Is a large gamma 4 level So there's 440 435 down below is the put wall So qqq trading above its put wall 442 is the volatility trigger Earlier today 441 acted as Resistance then later today 443 acted as resistance Most of these are just round numbers round number levels in qqq So to me these numbers look very important and then up until just recently qqq And nasdaq has been oscillating up and down around the 442 volatility trigger now moving lower All right, so that's qqq and a lot of qqq numbers in play for today round number levels Let's take a look at indiex This is also a one-minute chart showing price action for yesterday afternoon as well as today Here's the big drop yesterday Right down close to the volatility trigger at 890 Right there that was the volatility trigger yesterday So acting as support yesterday afternoon at the close Rally up today So indiex above its volatility trigger also above its call wall in absolute gamma strike at 17,900 and then the This 18,200 Acting as resistance And that is a spot gamma level So let's go see what that is So that 18,200 level is a large gamma three level So that's indiex 18,200 large gamma three level acting as resistance All right, so again, I have my own cloud notes Here so I can show qqq levels. There's the 436 acting as support Then this cluster of levels right around 438 acting as support later So that was 438 the 18,000 level for indiex And then Nq 18,200 So again, I have my own cloud notes so I can show qqq levels and indiex levels As well as key numbers for Nq a daily expected move also the big round numbers the the zeros in the fifties All right shifts and levels for nasdaq. There were no shifts and levels And the indiex and for qqq the put wall and absolute gamma strike both shifted lower All right, we'll talk about setups in a few minutes. All right, let's wrap up position analysis by taking a look at Gamma notional in the van a model So let's go on to gamma notional. This is market makers position on the gamma curve at the beginning of the day For the sp500 And nasdaq with the big drop yesterday, you can expect that those numbers dropped Pretty substantially lower and they're quite negative now especially for spy and qqq So for spy that is minus 1.839 billion negative gamma notional So at a negative gamma environment this means that traders along puts market makers are short puts Hence the negative gamma they have to trade with price-dash their delta exposure So these numbers are quite negative At the beginning of the day and when I see that I always want to take a look at the van a model so let's Take a quick look at this chart To see how market makers might react To changes in price and applied volatility. So this chart is showing Market makers delta notional on the vertical axis spot price for spx on the horizontal axis There are two lines on this chart The light gray curve is showing how market makers delta notional may change with changes of price only And the purple curve that's the one we want to take a look at shows how market makers delta notional May change with changes of price and applied volatility And that change in delta notional with a change in applied volatility is The van effect van is a second order greek All right, let's take a look. So lower the day for spx was right around 51 57 So let's see if we can find that on this chart All right, so somewhere around here So what this is showing is As price increases as has been doing today and applied volatility drops Market makers delta notional Will decrease And they can buy back their short futures So yesterday as price was falling traders were buying puts You know, there was a pretty large increase in vixx yesterday traders are buying puts Market makers were selling the puts they had to sell future to Sell futures to hedge their delta exposure now as price is increasing implied volatility dropping Market makers can buy back their short futures. That is put van a fuel that helps to fuel a powerful rally So when gamma notional gets that negative again, I always want to take a look at the van a model And let's just take a quick look at qqq So qqq And this type of curve without a what others without a shift up to the right is very typical Uh, a very steep skew to the left very typical of a negative gamma environment. Let's just take a look. So qqq lower the day Well, let's check that out. I did not write that down meant to oh, it was 436 So let's go 436 oops Wrong way. So right about here so again price increasing applied volatility dropping Market makers Delta notional decreases They can buy back their short futures. So in the case of qqq that would be in q futures All right, so that wraps up my Analysis so thesis for the day based on the shifts lower in levels For the spx spy and qqq that would lead to a That would lead to a bearish thesis slight slight bearish thesis Although you have other hand considering this put van a rally a put van a potential fuel You always have to look for a strong rally if price starts to increase And applied volatility drops That will again could lead to a powerful put van a fuel Put van a fueled rally and so that is what what has happened earlier today All right, let's move on to Move on to some setups now All right, so i'm going to start and take a look at what options traders are doing today So this is the everything that we've looked at so far other than book map is based on static data That's updated once a day spot gamma takes open interest data that comes from occ updated once a day sometime overnight spot gamma applies their algorithms to that data to come up with the levels That I show on my charts Now let's move on to execution And look at real-time Water flow and hedging flow. So this is spot gamma hero. It shows real-time hedging flow. So hero stands for hedging impact real-time options This is a combined chart Showing options trades and market maker hedging activity for a combined signal of spx spy xsp and es futures All into one combined signal The white line is price for spx And the purple line is the hero signal and a rising Purple line indicates traders are taking positive delta positions They are buying calls and or selling puts. So that's positive delta options positions Again, they are buying calls and or selling puts then a falling purple line indicates they are taking negative delta positions They are buying puts and or selling calls So let's zoom in on this chart and I will tell you this was not not necessarily an easy read today All right, so if you do use the hero signal as a A confirmation of your trade then really the First clean signal for the smd 500 I think came in right around 1030 So let's take a look at that. So first of all The hero signal had been up and down Then just before 1030 this flow alert comes in Signaling significant options activity often these flow alerts, especially in the sp500 signal Can act as mean reverting signals. This is indicating a shift from negative to positive or positive to negative So I interpreted this as a mean reverting signal And that's exactly what it did. So note the shift in hero from Negative delta to positive delta right after that signal comes in All right, so let's go take a look at book map Go back to es So we know at 1030 the hero Shifted to from negative delta to positive delta So let's zoom in on this And we'll take a look at the clues and book map Read the order flow and book map All right. So first of all, there's a level This spy 515 level large gamma 4 level Acting as potential potential for support Also vwap just below that Let's see what else we know I'm going to zoom just a little bit All right, so next clue Note the rising light blue line That's showing iceberg orders And a rising light blue line indicates large traders are using iceberg orders To hide their size. Those are by iceberg orders rising light blue line by iceberg orders Here's the on-chart indicator So as price is chopping around Large traders are buying with iceberg orders again. They used to hide their size price moves down The volume dots are showing Market buy minus sell magenta dots indicate more sellers than buyers green volume dots Show more buyers than sellers Aggressive sellers on the way down to the 515 level Aggressive buyers start to come in volume alert sounds the hero alert sounds And price starts to move higher All right game now I'm not talking about my trades today I'm talking about I'm going to talk about more than I was able to trade today. Okay, so I did I did trade today, but this is Not what I traded. I've been trading more stocks Recently, but I wish I had taken this trade All right, so very clear signal shift from bearish To bullish Again the hero signal rising Price moves up nice pullback Right around 1115 And then price Makes another shot up to the 52 20 5 20 level So if you got in here got out here that was about five spy points Or Right around 50 es points All right, let's take a look at Nasdaq now All right, so this is the nq futures of book map All right, tony Hello, welcome. Ask. Can you use hero to trade futures like oil and gold? The actual commodities, no, but if you trade Energy related stocks or even the etf like xl a yeah, you can use hero for those stocks You can also use hero for gld But not for the oil and gold futures All right, so this is nasdaq nq futures the book map. Let's go take a look at hero again And for the nasdaq the hero signal was a lot more clear So for nasdaq I use this mag 7 signal Let me just zoom out show you what that is All right, so this is a combined signal Oops, let me zoom out So I can show you This is a combined signal For options trades and market maker hedging activity For the stocks known as the magnificent seven apple amazon google Meta microsoft and vidia tesla And these stocks make up a very significant portion of the nasdaq 100 And also the sp500 their key drivers of price So this is what I look at when I'm trading nasdaq All right, so let's zoom back in on this chart All right, so this was much more clear than the sp500 signal Note the sharp reversal higher in the hero signal right around 940 And it really has continued to move higher So a much more clear signal I think for the mag 7 hero signal here for For the nasdaq All right, so let's go take a look Go take a look at nasdaq and q futures and book map zoom in All right, so this is the This 940 reversal Right at the qqq 436 level we saw that on the for uh the qqq chart that I showed earlier vegetative volume dots aggressive sellers on the way down Green volume dots aggressive buyers on the way up Pull back in a little bit of consolidation at this cluster of levels that I talked about before 438 Then multiple pullbacks Again shift from magenta to green volume dots at every pullback On up to this 18,200 level And the qqq 422 volatility trader In note after price started to move higher large traders joined in with iceberg orders shown by the rising light blue line Also bystop orders helped to fuel the move higher that shown by the rising yellow line All right, so game now. I hope I didn't uh hope that's not too disappointing. I just can't I'm trying to show uh Some a variety of trades and futures and stocks So I hope that helps All right, anorag asked do we have 24 hours in q futures Hero signal All right, um, I don't think so I know that for the sp500 spx and es options do trade before the cash open But it's uh typically not significant Compared to the regular trading hours All right, so an spx starts to trade spx options. I'm not quite sure what time sometime during the night All right, so there's the nasdaq trade Let's go back to hero All right, so hero mag seven signal some consolidation Starting around noon price consolidating So options traders taking the foot off the gas And price consolidates moves a little bit lower. Let's just see what traders are doing. I'm going to separate outputs and calls So they are buying calls that show them by the rising orange line. They're also selling puts Show them by the rising light blue the blue line orange line calls blue line puts Direction indicates delta Rising lines indicate positive delta. So again buying calls selling puts All right, let's move on to amazon so in amazon traders are buying calls today that show them by the rising orange line There were a couple of flow alerts. It looks like one came in just right after the cash open and then another as this call line jumps That's a large block order of someone buying calls large institution owner buying calls in amazon pretty quickly moves up to the 185 call wall and when amazon reaches that price call buyers Took their foot off the gas All right, so by the way, this is a large part of my process now watching for these flow alerts in the first 15 to 30 minutes They usually come in pretty quickly right after the cash open and i'm looking for something like this aggressive call buyers for a long entry And typically will be alerted with these flow alerts So once I see the flow alert the rising orange line. I'm just looking for an entry point for a long All right, so let's go take a look at the book, ma'am Let me zoom in a little bit remember 185 the call wall So that large block order of calls Actually came in somewhere around here So and there was again remember a large there was a flow alert right after the cash open So if you were looking at amazon you can see all the green volume dots here a lot of aggressive buyers at the open Rising cumulative volume delta again a lot of green dots pullbacks to vwap And then the flow alert comes in And price jumps up to the 185 call wall Note the high liquidity at that level. This is very typical for stocks Those are limit sell orders above price They typically come in for stocks at the cash open and remain until they're filled So in this case Those orders were consumed At the 185 call wall again. That's where the options traders took their foot off the gas All right, the next stock meta This has been a very good stock to trade recently Let me zoom in A little bit of chop to begin So let's go take out. Let's take a look at the clues here in In book map A little bit of chop double bottom around 515 And after this second test slightly higher low at 515 Note the shift in the volume dots Magenta on the way down aggressive buyers start to come in And then there's Nice entry pullback to vwap Just after 945 Let's see what options traders are doing All right, so let's go to hero now Go to meta So these flow alerts Let me we'll we'll leave it like this Here are a couple flow alerts very early Very typical of meta the last few days these flow alerts have come in Uh Less than a minute after the cash open and from the open traders were selling puts that shown by the Rising blue line It took a few minutes, but they started buying calls another flow alert And meta moves higher Then finally begins to consolidate Right around 1215 Or actually before 11 o'clock A little bit of a pullback is the blue line orange line move lower Comes back up makes a slightly new high As the blue line orange line rise And now Looks like that's the high of the day right around 530 And that was the right around the high that was actually the high of the day yesterday Yesterday that's when traders started selling calls right at 530. I did post that in discord and on x Oops, not sure what happened there Sorry about that a little bit of an issue with my pen tool That must have uh taken it into whiteboard mode. All right, so let's take a quick look At why 530 all right, so what this is this is the put call impact chart For meta In spot gamma equity hub expand this chart These curves are showing the rate of change of gamma orange for calls Blue for puts Note the call wall did move up from yesterday There's the call wall at 520 that did move up from yesterday All right, so we know that 530 was the stopping point yesterday and today. So let's take a look at why Why that might be the case All right, so there's 530 Right right where I'm holding my cursor that vertical line That's also this This bar right here 530. So what we notice At that point that's when these lines The steepness of the lines the rate of change of gamma Starts to slow down It was a little bit more pronounced yesterday So that's an indication that at that point Market makers are near fully hedged. So they don't need to Continue to buy stock like they were doing before their rate of change of gamma is slowing down They're near fully hedged They don't have to continue to buy stock like they were And also traders were selling calls at that level. So there are really two reasons why 530 acted as resistance For a stopping point again They stopped selling puts Stop buying calls start selling calls also market makers Rate of change of gamma is slowing down at 530. They no longer need to hedges aggressively All right, so let's go take a look at book map Here's meta Looks like meta did not quite make it up to 530 and the post That I put in discord and next yesterday It made it up all the way to All the way to 530 actually i'm not showing the entire chart Oops Let me scroll over to the right a little bit So there was another higher Higher high so it did make it up to 530 and those orders at 530 were consumed right around 1215 Note the high band of liquidity at 530 All those limit sell orders were consumed All right, so meta has been a very good one to trade the last few days So it took a little bit of patience in the morning To wait for that entry that I pointed out Right here pull back to vwap After that chop for the first 15 minutes All right, the next Is in video Let's just take a quick look at this and then I do want to talk about the index relationships that i'm using and how I use those All right, so in video. Let's go see what options traders are doing And note for in video. There were a couple of very deep pullbacks in the morning Here and here All right, let's go take a look at hero for in video Again traders buying calls and or and selling puts Rising orange and blue line with both lines moving in the same direction That's a very powerful directional indicator In this case bullish a couple flow alerts come in At right around that first very deep pullback Secondary pullback then another pullback So they continue to sell puts Looks like right now the Call buyers have taken their foot off the gas All right, so there have been Several questions about the index relationships that I use and how I use them So let I want to go over that for just a couple of minutes All right, so tonic a that's what i'm going to talk about right now. So let's go back to yes futures All right, so first of all again, I want to show the correct spx and spy levels on my chart There are four index relationships that I use two for the sp500 and two for nasdaq So let's go over The sp500 all right, so I use thinkorswim And to get the es to spx difference. It's very simple looks like it's close to 50 now today It was 50 40 right around 49. So it does change from the day. So during the day Also from day to day it typically gets a lot smaller. So hope you can see this This is a watch list in thinkorswim. I have slash es minus spx And it calculates that in real time So it looks like it's somewhere between 49 and 50 today. I'm using 49 All right, so now let's take a look at The es to spy relationship and let me see if I can Find that right. I don't have that on this chart Let me find a spy chart All right, here's a spy chart So I have the scripts and I did post the text for these scripts In discord So there's the es to spy. Let me redo that This is just a badge on my chart And you can add that to any chart and thinkorswim All right, so I'm looking at this To calculate the es to spy relationship All right, the two relationships that I just showed The es to spy Both es and spy start trading before the cash opened So this number is available before the cash open The es minus spx That number is not available before the cash open spx doesn't start trading that Of course the options trade before trade start trading before the cash open But the spx number does not change until after the cash open So when I post the preliminary index relationships for the spb500 and nasdaq I'm using the previous days numbers for es minus spx And nq minus ndx I have to use the previous days numbers and then after the cash open I do post the final numbers and that takes into account the the new prices for spx and ndx All right, so again the es to spy number That's available before the cash open es minus spx. That is not available All right, so I update the final numbers sometime after the After the cash open all right, let me show you what I do with those numbers now And it's the The calculations are the same for nasdaq. So I'm just going to focus on the sp500 here. All right, so the next step I have an add-on In book map called price lines. This is not price levels. This is price lines. It's available in the book map marketplace It's a a paid add-on. It's Created by fintech visuals Very good add-on And what it does it displays the levels Here in my cloud notes column and it also draws the lines All right, so this is pointing to A csv file That's where all the information comes from and now as far as details of using this add-on if you're interested in it you can Purchase it and the instructions are very clear All right, so let's take a look at the spreadsheet now Now this is my own spreadsheet if you are interested in this you will need to Need to create your own spreadsheet So first of all let's go to the top of this This is the This is what is Showing here in this spreadsheet The symbol price level the note that shown in the column on the right Foreground color background color text alignment line style and whether or not or draw it or yes or no All right the first very simple I'm showing the big round numbers the zeros and the fifties for yes And I have my own Style that I want to show those levels. All right the next these are spy levels this changes every day both the levels and The es to spy relationship. So this is where This is where I use that es to spy relationship And I do calculate these by hand because I want to show it to the nearest tick I'm not there may be a weight around this to every point two five. I don't know it So I just calculate these by hand. It just takes a couple minutes So, you know, this is entirely optional if you If this information looks like it's important to you you may want to try this out. This is how I do it. So I'm Filling out this spreadsheet every day. I get these numbers from spot gamma So again, these levels change every day And they're on the home page the index levels All right, so those are the spy levels Let me scroll down These are the spx levels These are also from spot gamma. They change every day So that's where that es to spx Offset comes in So for example, I'm showing the 5000. That's not no, of course not in play today Showing the 5000 absolute gamma strike put wall at es 50 49 so there's the 51 90 volatility trigger at es 52 39 So again, I'm doing that by hand. It takes a few minutes and then finally Here's the lower and upper daily and weekly expected move So all this feeds into This price line is add on That displays the labels And the lines in my cloud notes All right, so folks, I hope that helps That's how I use that to Show these lines. I think they're important. It's worth the time to me To do this so the nasdaq is The same steps only nasdaq one thing that I do to Speed up the process for nasdaq. I'm not concerned about getting the qqq levels at at the Tick levels. I want to just show our round number So here I'm just showing this This is the relationship I just calculate that and I actually put the round number Over here in this i column In that I round off this number To the nearest round number level So it's a lot quicker for the nasdaq But otherwise the process is the same All right, I hope that helps everyone who had questions Tony say About how I use this Use this information the index relationships how I draw those levels on the chart And how I get them as accurate as possible All right, everyone my time is up. I want to thank you for watching. Thank you for your questions and comments Oh, let me do a last check for questions Anirag ask, what do you think of the strategy? First of all, I can't comment on specific Specific strategies as soon as the bullish call lurk comes in Sell a put put credit spread um Well, I would make uh, I would not just look at the alert, but I would look at other information as well But that's certainly viable for For trading Any hero signal alerts and other hero signals So, uh, you know certainly viable risk defined All price has to do is Stay above in the case of a a bullish credit spread Stay above your Upper price level you're short you're short And you're good to go. So yeah, that's certainly a viable Way to trade All right, everyone. Thank you very much for watching Thank you for your questions and comments. Have a great weekend and I will see you on monday. Thanks again. Bye