 Hello everyone, welcome to Options with Doug, streaming live daily on Bookmap Discord and the Bookmap YouTube channel at 1.30 PM 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 and 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 training range and volatility for the day as well as the directional bias. And 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. And just to be clear, I will be talking about setups today in an underlying asset. And those setups can be taken any number of ways in the site, specifically, state otherwise, like I'll show with Nvidia today. So again, my analysis and planning is based on the options market. And then setups can be taken with shares, futures, or options. And questions and comments are welcome. And I will be watching the options-dug chat channel and Discord and the chat in YouTube for your questions and comments. And my agenda for today, first of all, I'm going to talk about news items, economic data events, and earnings. Then I'll go through my positional analysis. And then I'll review a couple of key setups from the morning. And then we'll take a look at the live market and see if we see any setups, see what options traders are doing, and what is happening with order flow. All right, let's get started. We'll start with news. All right, so first of all, as probably everyone is aware, Nvidia reported earnings after the close yesterday and was up sharply. And the last time I looked, it was up over 25%. So here's Nvidia in bookmap. And just for perspective, so this is today. And sorry about all the lines here. This is my price lines add-on draws lines at every dollar increment. And when price really moves, it makes somewhat of a cluttered chart. But anyway, this is Nvidia for today. And just for some perspective, let's zoom out and look at yesterday. Oops, I thought I had that data. All right, here it is. Sorry that took so long. So this is yesterday. The gap up after the close yesterday and then trading up during the pre-market today. And then Nvidia dropped down pretty sharply just after the RTH opened, giving traders who weren't already long the opportunity to get long. And just to give you an idea of how this could have been created, let's take a look at thinkorswim. I'm going to go to Nvidia here and give me just a moment. And just for perspective, again, this is a call. I just looked at the this is actually I looked at this morning before the open. So options prices had not changed. And this was a far out of the money call, a $347.5.50. I was just looking for a call that was trading around a dollar. So this call was, again, far out of the money lottery ticket that was trading for $0.95 or $95. And currently is trading at almost $4,000, $3935. So that's just some perspective of the move in Nvidia today. And you wouldn't have to do very many of these during the year to have a great year. So $95 call is now trading for what's trading around $3,900. And let's just take a look at something else while we're on the topic of Nvidia here. And I want to take a look at Spot Gamma Equity Hub. Let's go. So this is the Spot Gamma Equity Hub, put call impact chart for Nvidia. And what this is showing is Gamma Notional. And this is called Gamma Notional with the orange bars above the zero line. And put Gamma and the blue bars below the zero line. And actually, I zoomed in too far. Let's go back. So right now Nvidia is trading up, let's say around $390. And what this is showing, this is the sloping lines here. And we'll just look at the call line. That is showing the rate of change of Gamma Notional. And note that this line is at the current price, the slope has really decreased. So very steep slope up until about, let's say, 360 or so. And then this line levels off, indicating that market makers need to hedge is very reduced at this high level. So they're hedging requirements. All these calls are way in the money. And their hedging requirements have dropped off sharply up at this level. So again, all of these calls are now deep in the money. All right, so that is Nvidia. And then really the key to watch today was hero, to see what traders were doing with calls. So let's zoom in on this. So notice the sharp drop this morning. And most likely, traders taking profits on calls. And then as Nvidia dropped down, traders took the opportunity to start taking positive delta positions. All right, let's take a look at puts and calls. And this is clearly showing that call traders, sellers, and buyers have been driving price action today. So JEC comments that Ivy was very high due to the upcoming earnings announcement. Yes, that is always the case, especially in a stock as volatile as Nvidia. That pre-earnings implied volatility is going to be significantly higher. And this is why I called that call that I just showed a couple of minutes ago a lottery ticket. That it was way far out of the money. And if you were wrong, if Nvidia did not move up significantly, you lost $95. For the chance to make a whole lot more as we saw. All right, so then this certainly makes sense. This drop right at the open traders made a fortune on their calls and were selling. And then other traders took this opportunity to start buying calls. So that's Nvidia, a very, very interesting day today watching the options trading dynamics in Nvidia. All right, so let's get on to there was actually some other news, some other things going on as well. So first of all, there was some data that came out this morning. Jobless claims, a little bit less than expected. And then the GDP estimate was a little bit higher than forecast. And then there was also preliminary PCE data that was a little bit higher than forecast. So that was the data at 8.30 AM Eastern Time. And then tomorrow PCE comes out and durable goods at 8.30 AM Eastern Time and consumer sentiment at 10 AM. All right, let's take a look at the end disease and start with the positional analysis now. So that's Nvidia. Call buyers again made a fortune. All right, so here's the S&P 500 in Bookmap, ES Futures. And before I take a closer look at this chart, I'm going to start with a 30-day one-hour chart for SPX to give us a larger time frame perspective. So again, this is SPX, larger time frame. Let me point out some levels on this chart. First, this is the lower and upper edge the expected move for the day. And now it looks like SPX is trading just above that level. And note also that SPX, for quite a while, traded in a very narrow range, 4100 to 4150, moved back to that level yesterday and now appears to be trying to break out again above that level. Other levels to note is the dash purple line showing the lower and upper edge of the expected move for the week. And note yesterday, SPX was trading below that level and now has moved back above the lower edge of the expected move for the week. And then there are also some spot gamma levels here on this chart. I'll point out the key daily levels. Here's the put wall at 3,900. That's the strike with a large net negative gamma that can be expected to act as support. And that's pretty far out of play now. Then the next level is the 4,000 level. That is the absolute gamma strike, the strike with the largest absolute gamma. And then next is the volatility trigger at 4135. And that is spot gamma's proprietary gamma flip level. Below that level, market makers position on the gamma curve is negative. In a negative gamma environment, they have to trade against price to hedge their delta exposure. And then in a negative gamma environment, they have to trade with price to hedge their delta exposure. So that's below that level. It's hard to read, read chat and think and talk at the same time. So again, this is spot gamma's proprietary gamma flip level. Below that level, market makers position on the gamma curve is negative. In negative gamma environment, market makers have to trade with price to hedge their delta exposure. And that tends to enhance volatility. And then on the other hand, like SBX is trading now above that level, market makers position on the gamma curve is positive. In a positive gamma environment, they have to trade against price to hedge their delta exposure. And note that gamma notional at the beginning of the day today was negative for SBX, SPI, and QQQQ. And then finally, the call wall is up at 4,300. That's the strike with the largest net, positive gamma. And that can be expected to act as resistance. So the put wall and call wall pretty far out of play today. All right, let's take a look at a shorter time frame and we'll take a look at the levels that are in play today. So this is another thinkorswim chart. This is the one day one minute chart showing the same levels and the levels that are in play for today. First of all, the volatility trigger at 4,135. Now, SPX is trading above that level. And here's the light blue upper edge of the expected move, that light blue dash line. So now that acted along with 4,150 acted as resistance several times today. And now, SPX is breaking out above that level. And then the 4,150 was noted as resistance in the Spot Gamma AM Founders Note, these two levels here. All right, so those are the levels that are in play for today. And let's take a look at book map now. And the same levels are shown on this chart. I have two columns of notes here. This is the Spot Gamma Cloud notes, same levels provided to Spot Gamma subscribers for a variety of platforms. And then I have my own cloud notes here. And I added in some additional levels. And also note that the difference between ES and SPX, what Spot Gamma was using is 11 points. And the last time I looked, it was a little bit over 8 points. So that's why I'm showing my 4,150 level a little bit lower. And there you can see that as closer to what was actually happening is that level did act as resistance a couple of times today before price now has finally broken above that level. And note, this is the lower edge of the weekly expected move shown with the dash purple line. And that's for ES, not SPX. So that level is a little bit different. And that did act to support. Also, I'm showing key SPI levels. So for there, for example, I have the SPI 413 Volatility Trigger, which is almost at the exact same level as the SPX 4135 Volatility Trigger. And then this level, price is now approaching this SPI 415 level, which was also noted as a resistance level today. And that is a large Gamma 1 level. And it did act as resistance just after 9 AM Eastern time. All right, so those are the levels that are in play for today. And we'll take a look at setups in a few minutes. All right, give me just a moment. There's a conversation going on in Discord chat here. All right, I'll take a closer look at that later. All right, so let's take a look at NASDAQ now. So for NASDAQ, before I take a closer look at this chart, I am going to take a look at a QQQ chart, see the Gamma levels that are in play for today. And this is a little bit, let's zoom a little bit, kind of the opposite of yesterday. Yesterday, there was a big void below of Gamma levels. And now there's a void above. So let's take a look. So Gamma levels below today and avoid no Gamma levels above. And note for today, this combo level, L1, was a big attractor for price, price traded up and down around that level. And that's a combo, NDX and QQQ, large Gamma 1 level. And now note the primary level in play is the 340 call wall level. And price is bumping up against that level. That is expected to act as a resistance. And we'll see. All right, so there's the call wall. All right, let's go take a look at NQ. So here is the QQQ 340 call wall. All right, so the 337 level for QQQ acted as support this morning. And now price is trading up just around the QQQ 340 call wall. All right, and again, we'll take a look at setups in a few minutes, although the options volume or the options notional value for NDX in particular was very low today. So there was not the last time I looked at hero for the NASDAQ. There was not a lot to go on. All right, let's talk about shifts in levels now. And while I'm doing that, I'm going to go to the spot gamma levels. And again, remember, I'm still in my positional analysis. Long chart. All right, so there were very few shifts in levels, really other than the volatility trigger, which shifted higher for SPX and NDX and QQQ. So volatility triggers shifted lower for all instruments. Again, volatility triggers shifted lower. Otherwise, for spy, the absolute gamma strike dropped from 415 to 412. And for QQQ, the put wall dropped lower from 330 to 325. All right, let's take a look at the absolute gamma levels. This is SPX. 4,000 remains the absolute gamma strike. That's pretty obvious. This chart is showing call gamma or positive gamma in the orange bars above the zero line. And negative gamma or put gamma with blue bars below the zero line. And this, again, is the 4,000 absolute gamma strike. The put wall, the strike with the largest net negative gamma remains at 3,900. And the call wall remains at 4,300. That's the strike with the largest net positive gamma. All right, so that's SPX. And again, the volatility trigger shifted lower to 4,135. Take a look at spy. Zoom in. So for spy, again, the volatility trigger did shift lower from 415 to 413. Also, the absolute gamma strike shifted lower from 415 to 412. So there's the absolute gamma strike. And the put wall remains at 400. And the call wall remains at 420. So there for spy, the ceiling, the floor, and the absolute gamma strike. All right, before I look at NDX, I'm going to have to do a refresh here. Take a look at NDX. So for NDX, this is pretty simple. This is the 13,850 strike. And the center of the options universe for NDX. That is the absolute gamma strike, as well as the call wall. And the volatility trigger is below at 13,175. And that did shift lower. And then the put wall is way lower at 11,000. Let's take a look at QQQ. We'll zoom in on this for QQQ. The volatility trigger did shift lower, as well, from 334 to 332. Also, the put wall dropped lower from 330 to 325. So there's the put wall, the strike with the largest net negative gamma. And then the absolute gamma strike remains at 330 and the call wall at 340. And as we just saw in the QQQ and NQ charts, that QQQ was creating up against that level. And that is expected to act as resistance. All right, let's take a look at one other thing while we're on this page. And this is the Vana model. And just so you're aware, at the beginning of the day, market makers' position on the gamma curve for SPX, SPI, and QQQ was all negative. So indicating that market makers needed to trade with price to hedge their delta exposure. So let's take a look at where. Take a look at my watch list and see where SPX is trading now. Give me just a moment. So right now, SPX is at $4154. And we'll remember that. So there's $4154 just around there. All right, so let's go into some background on this chart first. So what this is showing is market makers' delta exposure on the vertical axis and how that changes with price shown on the horizontal axis. All right, there are two curves on this chart. The first, the gray curve, is showing how market makers' delta notional changes with changes in price only. And then the purple curve adds implied volatility to the equation. And this is showing how market makers' delta notional changes with changes in price and implied volatility. And that's the van effect, the change in delta with a change in implied volatility. And what this is showing is if price increases from here, market makers will have to sell futures to hedge their delta exposure. And what the purple curve is showing is that as price increases, market makers will have less delta to hedge than shown by the delta-only curve as price increases. And then on the other hand, as price decreases, they'll have more delta to hedge. And that's in a negative gamma environment. They'll have to sell futures as price decreases to hedge their delta exposure. And then on the other hand, if price is on this portion of the gamma curve and price increases, they can buy back their short futures. Let's just take a look at, I want to go take a look at ES. Again, let's see where. So this morning, SPX traded down to maybe 40, 4130. And let's take a look at, so right around 4130, yeah. So let's go back to the gamma chart now. So at 4130, what this is showing is around this level, market makers are trading with price to hedge their delta exposure. So if price continued to drop, market makers would need to sell futures. Then on the other hand, if price increases, they can buy back their short hedges. And that appears to be what's happening now, say, up around this level. And then that market makers hedging will start to decrease, and a certain point of price continues to increase. They'll have to start selling futures as their gamma shifts from negative to positive. And again, remember, we'll take a look at the data now. All right, so the data, again, remember, I was noting that market makers gamma notional was negative. And gamma for SPX, SPI, and QQQ, and just slightly positive for NDX. And these numbers did shift lower from yesterday for SPX, minus 138 yesterday to minus 391 today. Shifted slightly higher for SPI from minus 1576 to minus 1466 today. And then for QQQ, did shift lower as well from minus 224 yesterday to minus 357. All right, let's take a look at some setups now. So based on this information, I was looking for a higher volatility trading day-to-day and really did not have much of a directional bias. They were maybe slightly bearish based on the shifts lower and the volatility triggers for all instruments in the absolute gamma strike for SPI and put wall for QQQ. And then up until a few minutes ago, it looked like price was trading in a range today and appears that it has broken out. All right, so let's take a look at some setups. I'm going to go to Spot Gamma Hero here. And let's go to the S&P 500. And this is a combined signal for the entire S&P 500 combined instruments. First of all, this chart, for those of you who may not be familiar, this is showing price for SPX and hedging flow, hedging impact for SPX, SPI, XSP, and ES futures all into one combined signal. And note this number is negative for the day, negative notional value. All right, let's take a look at the individual components of this. And then we'll take a closer look at this chart. So first of all, for SPX, that's actually positive. So for SPX, traders are taking positive delta positions, positive delta notional. For SPI, it's negative. It's been a steady downtrend all day. SPI options traders taking negative delta positions. And then for ES futures, slightly positive. So let's take a look at the combined signal now. So now I'm reviewing setups from the morning. And we'll take a look at the live market in just a couple of minutes. So first of all, just to point out, this really setup shorts as hero was trending lower. First at the open, here's another divergent setup. Notice price moves up. Hero really levels off, but never confirms the move higher. Options traders are as they level off, price moves higher, and then begins to move lower again. Same thing here. Hero levels off, moves lower. All right, let's go take a look at book map. And I thought this hero combined with order flow made for some good short setups this morning. First, right at the open, sharp drop down. And this was a better setup. There's a reversal at the 4150 level as traders were taking negative delta positions. Let's zoom in on this. And note the iceberg orders here. Large traders selling with iceberg orders shown by this sharp drop in the light blue line. And that appears to be the order there. A little over 3,900 contracts executed sell orders. Iceberg orders are what large traders used to hide their size. All right, so that was one short setup. Here's the next. Again, resistance at the 4150 level, expected to act as resistance. And not as much movement on that. And now price is trading higher. All right, so let's go through a couple of more setups. And then we'll take a look at the live market. So for NQ, let's just take a look at Hero. All right, so for Hero, there is a combined signal. This is the NASDAQ signal. And there was something odd going on with NDX. So anyway, this is the combined signal, very low notional value here at 11.6 million. Let's take a look at QQQ. So I thought this was a pretty low notional value, too, for QQQ. But both are bullish for today. Traders taking positive delta positions and really setting up some long setups. Let's go back and take a look at BookMap. So long's here at the QQQ 337 level, and then another pullback. All right, let's take a look at a few stocks quickly. And then we will take a look at the live market. So I thought that hedging flow was really supporting short setups this morning and the ES and long setups in NQ, and both worked. All right, let's take a look at AMD. And before I do that, I want to go take a look at one other thing and think or swim here. So now there's our NVIDIA call down to $3,500. And this is a market watch. This is for kind of a heat map for the SMB500. And as you can see, the usual suspects are driving price higher. Microsoft, Apple, NVIDIA, Google, AMD, Meta, Tesla, the Magnificent 7, as I heard someone call these stocks. So really tech, driving, and specifically AI related. That seems to be the big thing now. All right, so that's what's moving. All right, let's go back to BookMap now. Take a look at AMD. And I just really need this sweeps indicator as it can get out of hand. All right, so that should tone that down a little bit. All right, so let's go take a look at HERO. So as you would expect with NVIDIA being so strong that traders would be buying calls in AMD. And that's exactly what they were doing. So that made for a very nice divergence long setup this morning. Note that traders were buying AMD calls from the open as price dropped and then price reversed higher following the call buyers. Great long setup in AMD there with a nice opportunity that pulled back to take a long, either by calls with all these traders or by stock. Let's go take a look at BookMap. So there's AMD. There's the reversal at the 116 level and then the very obvious target at 120. Note the high liquidity at that level. Limit sell orders that came in the order book at the RTH open and those sell orders tend to attract price. So nice uptrend up to that level, good for four points. If you got in at 116 or bought a call down at that level. Let's take a look at Google. So Google, kind of the opposite of AMD here, note that 125 level is the call wall. That level did act as resistance this morning. Price briefly dropped, moved up above that level and then traded lower. Let's take a look at Hero and see what options traders were doing. Let's go to Google. So traders were primarily buying puts in Google that's shown by the following blue line there and that was what was driving price lower this morning and then they stopped. Notice how the blue line just levels off. So traders stopped buying puts, started buying calls and then price moved back up. There's Nvidia. So I mean Google. So if you were quick this morning, good short set up. The next is Meta. So for Meta, this was a, I thought a nice divergent short. Notice Hero starts dropping immediately down to the 250 call wall keygamma strike. Nice opportunity for a short there and then note that hero traders start taking positive delta positions and then price follows. So a divergent short and a divergence long in Meta. Let's go take a look at book map, take a look at Meta. So there's the short and the morning, then the long. And note again, 250 is the call wall and the keygamma strike acted as support today with a primary target at the 255 high liquidity level. All right, and then there's a request to look at Tesla. We'll take a look at that. And with Tesla, there's usually a very strong correlation between options trades, hedging flow, and price action. So gamma levels and play the 180 keygamma strike and the 182 hedge wall. That doesn't provide much clarity. So we'll look at the total signal. So options traders, hedging flow confirmed a short right after the open and then confirmed long. And that provided the most clarity up until about 11 AM. And we'll just see what. So right now, traders starting about 11.40 have been taking positive delta positions again in Tesla and prices moving higher. All right, so that's the current situation in Tesla. Let's take a look at the S&P 500 now. All right, so traders just around just before 2 PM Eastern time really started taking positive delta positions and price responded. And let's just see what they're doing. So let's take a look at, first of all, puts and calls. So really, they started buying calls shown by the rising orange line, sold a few puts, and then that leveled off again. Let's change this to a 30 minute lookback period. So now I'm only looking at the last 30 minutes of data. And it makes it a little bit more clear that call buyers are driving price today. Let's take a look at zero DTE now. So this is all expirations. And let's go to. So really, there's pretty strong correlation between all expirations and zero DTE. So it looks like zero DTE, if you look at the notional value, is about half of the total notional value right now. All right, let's go take a look at book mount. Go back to ES. I don't know, does anybody know if there was news just before 2 PM? There's something that prompted this sharp move above the 415 level. All right, so it's Biden news. So it must have been something about debt ceiling. All right, so we know that traders were taking positive delta positions. And then there was a shift in order flow. So this is showing aggressive buyers, cumulative volume delta, rising buy stop orders, as well as buy iceberg orders, all fueling the move higher and a little bit more. Let's note all the liquidity, all the sell orders, above the 415 level, as well as the upper edge of the expected move for the day. And price just slice right through those. What I'm talking about is the heat map here. Price went and retested the 415 level and now it has leveled off. All right, slow to Zoray. Thanks for the update on the news. And sorry, I don't follow Costco VMware or Workday. If you have Hero, you can take a look in there. And we're just looking at option chain, see how traders are positioning. All right, so that's the S&P 500. Let's take a look at Nasdaq now. So Nasdaq now is trading above the QQQ340 call wall. It made it up to the NQ 14,000 level. Let's see what options traders are doing. Let's go back to Hero. So we're on the all expirations one day look back period. So this is the total notion of value it looks like. At least for the moment, traders have stopped taking positive delta positions. Let's take a look at Nasdaq. We'll take a look at the combined signal first. And it looks like traders are taking negative delta positions. Let's take a look at QQQ. See if that provides any more clarity. Still kind of the same thing. Overall now, Hero is trending lower. So up until about 1 PM, I would say the trend of Hero was higher. And then so far, if this continues now, the trend lower as price has moved up to that QQQ340 call wall as well as the NQ 14,000 level. Traders have started to either take profits or negative delta positions. So it looks like they started selling calls and right now buying puts. Let's go back and take a look at BookMap. Also, it looks like traders, larger traders, are starting to sell with iceberg orders. Show them by this following light blue line. Let's just see what Nvidia is doing. All right, Nvidia is moving lower. Keep in mind as there was a discussion in Discord before about the high implied volatility of the Nvidia options. And that can lead to a charm effect as implied volatility drops. Those calls that were very expensive start to lose value. And if traders don't continue to buy calls, those market makers, when traders buy calls, market makers sell the calls and they have to buy stock to hedge their delta exposure. As implied volatility drops and price starts to drop, those calls quickly lose value. Earnings are over. The earnings are known. The event is over. And market makers can buy back their short hedges given any opportunity. So let's see what options traders are doing in Nvidia. What are the total signal here? Let's take a look at the 30-minute look back period. So really, hero is leveling off here and looking back over the last few hours making, starting to make lower highs and now trending lower. Again, implied volatility continues to drop. These calls are losing value. And market makers can sell their long stock edges. Until it drops far enough, and traders take the opportunity to start buying calls again. So something to keep an eye out for. Let's go take a look at book map. We'll take a look at Nvidia again one more time. So it looks like this 383 VWAP level was acted as support before. All right, so that's all I have for today. Very exciting day with Nvidia here. And again, remember tomorrow, PCE comes out and durable goods at 8.30 a.m. Eastern time and consumer sentiment at 10. All right, I want to thank you for watching. Thanks for your questions and comments. Thank you. So does our trader, PJC, for your comments. I'll read through this later on. Again, thank you, and I will see you tomorrow. Bye.