 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 creating 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 dash dug 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 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 changed 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 and spot gamma hero to confirm my thesis and for setups and just to be clear I will be talking about setups in an underlying asset like es futures or sp 500 or stock like amazon or tesla and those setups can be taken any number of ways with futures shares of stock or with options so my analysis is based on the options market setups I will be analyzing the underlying asset but again setups can be taken any number of ways questions and comments are welcome and I will be watching both the options dash dog chat channel and discord and the chat and youtube for your questions and comments so again I welcome your questions and comments my agenda for today I'm going to talk about news items news that came out this morning economic data and events for the rest of the week then I'll go through my positional analysis my planning process then I'll review some setups from the morning and then we'll go to live market and watch the live market and and see if there are any additional setups all right let's get started talk about news first so today the the big news item was the cpi data that came out at 8 30 a.m eastern time and it looks like to me it pretty much came in in line so the year over year was four percent forecast four point one percent previous four point nine so it does seem to be dropping and anyway apparently the market liked that so we'll talk more about that in a few minutes and then for the rest of the week there are plenty of other significant events first of all tomorrow ppi comes out at 8 30 a.m eastern time and then the fomc announcement at 2 p.m and the press conference begins at 2 30 p.m so the announcement will come come in midway through my session tomorrow so i'll go through my planning and preparation tomorrow and review setups as long as we have time and then at 2 p.m we'll start watching the live market then on thursday retail sales come out at 8 30 a.m and then friday is the big june options expiration and the june expiration looks to be a a big options expiration and definitely call dominated right so that is news for today as well as the remainder of the week all right let's take a look at some charts now i'll talk about my positional analysis so first of all this is the s and p 500 es futures in book map and before i cover this chart in detail i want to take a closer look at spx i take a look at spx in a larger time frame and hello the shadow i'm glad you're glad you're here all right so this is the spx in a 30 day one hour chart showing some key levels here and just to note this is uh think or swim and the script script that i'm showing to show the spot gamma levels showing these dark red lines oops wrong tool there is an error with this there i've gotten an error message the last couple days so i've sent a a support request to spot gamma support so far no response fortunately the levels did not change overnight so i'll talk about that in just a few minutes so the primary levels uh are correct i don't know about the combo levels and the uh the other levels shown on the chart so on this chart let me point out levels first of all the lower and upper edge the expected move for the week shown by these dash purple lines and note spx is trading above that level the upper edge the expected move for the week that's based on the options market and then in the dash blue lines that is the lower and upper edge the expected move for the day and it looks like right now spx is trading uh just above above that level or just around that level and that level has been resistance today so it's a key level let me point out the primary spot gamma levels first of all here's the put wall at 4 000 that is spot gammas per uh that's the put wall again the strike with the largest net negative gamma and that can be expected to act as support and that is pretty far down below not certainly not in play anytime soon and the next level is the volatility trigger that is spot gammas 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 with price to hedge their delta exposure and that tends to enhance or increase volatility on the other hand above that level market makers position on the gamma curve is positive and in a positive gamma environment they have to trade against price to hedge their delta exposure and spx is trading well above that level again that is at 42 45 and then the next level is the 4300 level that is the absolute gamma strike the strike with the largest absolute gamma and then finally here's the call wall at 4400 that's the strike with the largest net positive gamma and that can be expected to act as resistance and it certainly looks like the next price target in line maybe not today but maybe by the end of the week it depends on the fomc tomorrow right so those are the primary daily levels for spx and let's take a look at another thinkorswim chart this is spx and a one day one minute chart and the things to the levels to point out here this is just showing the levels that are in play for today first of all spx trading above the upper weekly expected move and that level did act as support and then the upper daily expected move has been acting as resistance times spx is having a hard time getting above that level and then up above is the 4400 call wall so for the smb 500 there were no shifts in levels at all uh at least according to the data that um on spot gamma dot com so volatility trigger put wall call wall and absolute gamma strike there were no shifts in levels actually for the smb 500 and nasdaq no shifts in levels all right so let's take a look at book map now and book map i have the spot gamma levels shown in the cloud notes here so here's the combo level and then the this 42 uh 43 50 level that was actually noted as resistance in the spot gamma am founders note and it actually acted as support and then i have my own cloud notes here and i have a lot more information in my cloud notes first of all i have the same spx levels in addition i have the upper daily expected move this is for es slightly different level than spx and es is still trading below that level and then i also have spy levels so there's the spy 437 that's a combo four level and down here is the um spy 435 call wall so levels that are in play for today first of all the 437 spy 437 and the 43 74 spx 43 74 level did act as resistance and again remember that's right around the spx upper daily expected move and good level for resistance and set up a short this morning and then this cluster of levels starting with the spx 43 50 level and then the 43 52 level the spy 435 call wall level all acted as support set up a nice long and we'll look at the setups in a more detail more detail in a few minutes so now it looks like the sab 500 is trying to break above that spx upper daily expected move and this level that has acted as resistance several times today right so that is the sp500 let's take a look at nasdaq nasdaq a pretty similar pattern let's take a look at qqq to see the levels uh qqq chart to see the levels that are in play for today so here's qqq again no shifts in levels for qqq or ndx so here's the 360 call wall and that should have should be acting as resistance but and instead it acted as support and then note the 364 level did act as resistance earlier today so nasdaq the 364 let's see this is 365 up here so and really it was the nq 15150 15150 acted as resistance and then the spot qqq 360 or around that level also the upper weekly expected move acted as support and unlike the sab 500 nasdaq has still not reached its high for the day all right so those are the levels that are in play for the nasdaq again primarily the so far the 15150 level and then the qqq 360 level and again we'll we'll talk about setups in a few minutes i'm just going over the levels that are in play for today let's take a look now at some more information that i use in my planning so this is the spx vana model and i think it's very important to understand how market makers are positioned on the gamma curve every day to get a sense of how they may react and i'll talk about an example of that so first of all here is the again the spx vana model and what this chart is showing is market makers delta notional on the vertical axis inhale their delta notional or delta exposure changes with changes in price and that's shown by this light gray curve showing how market makers delta notional changes with changes in price only and what this is showing is as price increases market makers will need to sell futures to hedge their delta exposure and that is typical of a positive gamma environment and then the pink curve or the purple curve is showing how market makers delta notional changes with changes in price and implied volatility and that change in delta with a change in implied volatility is the vana effect hence the name of this the vana model so what this is showing is if price increases market makers will have less slightly less delta notional to hedge as price increases then on the other hand if price decreases they will have significantly more delta to edge so this is typical of a negative gamma environment on the left side of the chart as price decreases they will have to sell futures so in that case they will be trading with price all right let's see where spx is trading right now so i've got spx at forty three seventy three so that's right around right around here where i'm showing my cursor this vertical axis so what this is showing is if price continues to increase market makers will need to sell futures to hedge their delta exposure and the important thing about this if you remember last year the in a negative gamma environment a lot of cpi reports after a lot of cpi reports there was a huge rally and that that was again in a negative gamma environment where the cpi came in as expected or not as bad as expected in a negative gamma environment market makers uh traders are long puts market makers are short puts and when the data comes out implied volatility drops market makers can buy back their short futures and that can lead to a powerful vana rally but that in a negative gamma environment but that environment does not exist today hence the somewhat muted reaction to cpi compared with the some of the reports last year in the strongly negative gamma environment so no vana fuel for a furious rally today you know i was looking for more of a range day and of course that does depend somewhat on the data but certainly there is no vana put fuel available to to fuel a significant rally all right so that is spx and i think again that's why it's important to look at this data let's take a look at spy so just uh just to note that gamma notional is still positive for all indices and mostly positive the highest positive reading for spx we'll take a look at spy now so slightly different spy is trading at 437 so right here and that has been the resistance level and note that market makers will be selling futures to hedge their delta exposure on this part of the uh this vana curve here and here it is for uh qqq qqq trading at 363 so right around the bottom here so price price continues to increase qqq nasdaq uh market makers will need to sell futures to hedge their delta exposure all right so that is how market makers were positioned in the sp500 and nasdaq at the beginning of the day let's take a look at gamma notional for spx spy ndx and qqq and all positive note the only number that shifted from yesterday was spx slightly lower so yesterday uh gamma notional for spx was 1.07 billion and now it is slightly lower at 967 million and the other numbers did not change at all so again a little strange but again that's uh you know that's what it is so gamma notional uh according to this did not change but anyway the thing to note here is uh all positive all right so based on this my thesis for the day looking for a range day lower volatility you know of course taking into account the fact that cpi data came out this morning but otherwise just based on the numbers looking for a range day lower volatility all right let's take a look at some setups now and we'll start with the s&p 500 and what i'm showing here is the hero signal spot gamma hero signal this chart is showing price for spx and options trades hedging activity for a combined signal spx spy xsp and es futures all into one combined signal if you trade the s&p 500 this is the signal uh you typically want to take a look at so today notional value is quite positive for the total signal at 3.2 positive 3.2 billion and that's shown here and we'll take a closer look at this chart and uh but first i want to take a look at the individual components to see how they're uh contributing so first of all spx positive at around 700 million strong correlation with price action spy very strong correlation positive 1.75 billion es futures also positive straight line ticking up at 765 million uh agreement between spx spy and es futures all moving higher let's go back to the total signal now zoom in on this chart let's zoom in on the morning session a little bit and talk about two trades from the morning so first of all this is the again the s&p 500 combined signal and there were a couple of setups here first of all a divergence short in the morning and we've already uh i've already shown this on the book map chart the reversal at that 437 level the upper edge of the expected move for the day for spx and that was also just right around that combo level so that set up a short and then price reversed at that cluster of levels just right around the spy 435 level right here as oops wrong tool as traders started taking positive delta positions so actually let's take a look at one other thing i normally leave my hero chart like this looking at the one day look back period i actually yesterday afternoon had it set to 30 minutes and this is what i was looking at this morning and it provided an even more clear signal for this long setup so it really set up a divergence short here hero made a lower high as price made a higher high right there and then hero made a higher low as price made a lower low setting up that reversal again at those around that 435 level so two very nice divergent setups there with hero so let's go take a look at book map now and again remember i'm set a reviewing setups from this morning so i'm going to look at s e s in queue and then i'll take a look at a couple of stocks and then we'll get to the live market and let's zoom in here right so here is the first short setup at these key levels note the shift in order flow aggressive buyers with the green volume dots and the aggressive sellers come in with the pink volume dots and note also that larger traders were selling this move higher that shown with this falling light blue line large traders selling iceberg orders as price moved higher and then price reverses lower at those key levels as options traders were taking negative delta positions and note now the shift lower and kill the cumulative volume delta and then buy stop orders start to fuel the move lower as pretty typical so that's the short setup pretty clear in watching hero and in book map then note as price was decreasing and this is pretty typical of larger traders they sell strength and buy weakness so note this continually uh rising light blue line showing large traders buying with iceberg orders as price decreases and then when price gets to these key levels order flow finally shifts positive cvd starts to tick up and remember options traders were taking positive delta positions helping to set up the the long so there's the short and there's the long at key levels confirmed by hedging flow and order flow so if anybody has any questions about these setups you know i'm going over kind of a big picture view not nearly as looking as closely as book bruce does but anyway these are the the setups that i saw this morning a great short and a great long again assuming a range day planning for a range day based on the large gamma notional and the the mana model right so that's the s and b 500 short setup long setup now bumping up against resistance we'll take a closer look at this uh in a few minutes let's go to nasdaq now the nasdaq quite a bit different from es let's take a look at hero and as i recall there was not much of a a clue for nasdaq with hero so like the s of b 500 this is a combined signal for ndx and qqq so the the signal this morning was not for a short was really not there but then this long setup was supported by hero with really a um a confirmed entry here around 10 30 as hero starts rising price pulls back around 10 30 and then moves higher for the long setup let's just make sure we'll go back to the one day and still uh pretty much the same there all right so let's go take a look at nqq again now um that was hedging flow but i think the the short was uh was also pretty clear uh when you look at book map note the large pink volume dots aggressive sellers there so there's a trend break aggressive sellers come in and note the it took a while but cvd starts to drop and sell stop orders help to fuel the move lower and note that uh kimlet uh the iceberg orders larger traders have been uh have been uh fading this move they've been selling all day long shown by this falling light blue line here so there's the short setup this morning not much of a clue from from hero from options traders but order flow when you step back and look at this big picture and you know don't look at nasdaq from tick to tick then it becomes pretty clear right so let's scroll over a bit look at the long setup and note the shift in order flow here a lot of aggressive buyers start to come in and then there's the pullback entry right back to the upper weekly expected move note the shift in cumulative volume delta and then his price gets going buy stop orders help to fuel the move lower higher and today uh the uh sp the sb500 was a little bit more clear and that's when i was trading right let's take a look at a a couple of stocks real quick and then we'll take a look at the live market so the first stark i want to highlight is amazon and call sellers were uh out today in amazon helping to drive move price lower here's amazon i'm going to separate outputs and calls and let's zoom in on the morning this big drop and this falling orange line is showing that traders were selling calls negative that's a negative delta position and that was helping to drive price lower and they were also buying buying puts but it looks like at least in the for the first hour that call sellers were definitely driving price lower so let's go back to book map and there's the sharp drop lower and 125 is the uh the key gamma strike i believe so that was the uh was the price target this morning price did not quite get there right so that's amazon the next one is meta let's take a look at hero for meta right looking at the the morning session this was was really a a divergent short entry points here and here just below 275 right around 275 as options traders were taking negative delta positions let's go take a look at book map entries there for a short setup and additional entries later on in the morning for a short there and 270 is the key gamma strike let's just see what they're doing so they're actually as of right now net buyers of calls and buyers of puts positive orange number is positive so they're buying calls blue number negative so they're buying puts right the last stock is tesla and tesla there's as usual a very strong correlation between hedging flow and price action i'm going to zoom in on the morning and this is something that does not occur uh very often in tesla but there was a nice divergent setup note the rising hero line as price continues to oscillate down and that set up a great long right here around 251 251 50 let's go take a look at that in book map that'll continues lower down hit that 270 level primary target all right so there's the long setup in in tesla remember that divergence and hero trend break and if you didn't get the breakout a couple of tests of this 254 level heading up to primary price targets at 260 256 and 260 so this was the uh as far stock goes tesla i think was the the best setup today so far and then for futures uh i thought the sb 500 was pretty clear all right let's take a look at the live market now and if anybody has any stocks or anything that you want me to take a look at uh please let me know and i'll be glad to do that so let's go to the sb 500 now and it looks like this uh resistance level the 437 43 74 level did act as resistance again and let's see what options traders are doing go to the sb 500 and note how hero has really flattened out here this is a cumulative signal for the entire day and i'm going to uh change to a shorter look back period this rolling window period change that to 30 minutes to get more clarity and that is something that i do like to do in the afternoon uh i'm just looking at the last 30 minutes of data instead of the data for the entire day and this this gives more clarity uh in the afternoon especially if that hero line looks flat and what this is showing is that options traders started fading the move as price hit that 43 74 level sbx 43 74 they started taking negative delta positions and now price uh did finally reverse lower looks like it made it down to the spy 436 level let's go back and take a look at book map so sbx es found some support at the spy 436 level all right so karma karma fx ask if i could look at palantir i'll be glad to and now i don't have that in book map but we can take a look at it in uh in hero so let's go take a look at palantir and i believe palantir has been definitely been in play recently up quite a percent percent maybe a hundred percent something like that you know quite a large percentage gain i guess based on their potential involvement with with ai so anyway palantir definitely been in play with options traders let's see what they're doing so a pretty choppy hero signal today over the one day look back period that that smooths it out a bit so today it looks like really call sellers and call buyers uh have been driving price so in the morning as price was trading at the 16 call wall here's the 16 call wall so there was a breach this morning and then price reversed lower at that level that was expected to act as resistance and they started selling calls from the open shown by the falling orange line and it looks like that drove the price lower to about 15 20 so maybe uh maybe good for a total of about a 90 cent move lower in palantir and then they stopped selling calls started buying calls and price immediately responded higher so this is the entire day all right so there you go hope that helps and again i don't have palantir in book map let's just see if that call wall breach was noted and no i don't see it here it's not in the alerts all right let's take a look at nasdaq so karma fx asked do i think it's heading up i assume you mean palantir and sure you're welcome uh palantir i don't have in a book map so i don't have enough information to say i think it palantir depends entirely on on call buyers so let's just let's take a look at one other thing let's take a look at palantir in here in equity hub i'm really not not seeing much here there's not it looks like the key gamma strike has oscillated between 14 and 16 call wall has remained at 16 so no in the last 10 days really no change to the call wall put wall has shifted up so traders are positioning the puts higher and i would be looking for what i was going to point out is let's take a look at my watch list something to potentially look out for is for call dominated stocks let's look at amd so for stocks where there's a large a large amount of calls call domination the thing that can happen on expiration especially with a large amount of gamma expiring and note the 48 percent so these calls traders buy calls market makers sell the calls they have to buy stock to hedge their delta exposure as expiration approaches those calls start to lose value and market makers and they're going to expire on on friday so market makers delta notional will start to decrease their delta exposure and they can they can sell their long stock so something to look out for friday this call gamma unwind and karma asks can i look at uranium uec i can almost guarantee that uec is not supported here in well i can look at it in an equity hub but i i doubt there um there's any options uh control for uec we'll take a look at it in just a minute so let me go through this so for amd what i'm looking at 48 48 percent gamma expiring on friday 616 so looking for a call gamma potential call gamma unwind those calls market makers are selling calls and they buy stock to hedge their delta exposure as those calls lose value they can sell their long stocks they no longer need all that all those hedges so another one is nvidia and i'm just sorting my watch list by next gamma expiry 44 for nvidia google another one and on this chart this green is showing an area of call domination so that's what i'm looking at on this chart the red put domination green call domination so i'm looking for those calls again to start to lose value as expiration approaches and a potential call gamma unwind probably not so much in an apple netflix microsoft amazon tesla kind of an odd composite view chart there meta all call dominated so all uh all potential call gamma unwinds all right let's see if there's anything here for uec so really no insignificant volume options volume so nothing there for uec all right let's take a look at nasdaq let's go to the 30-minute rolling window period so hero in a shorter look back period making a series of lower highs and now price is pretty much flattened out let's go take a look at book map and there's the es still found support at the spy 436 level larger trader coming in larger traders 600 iceberg orders executed and you'll welcome karma effects 600 contracts executed 12 executions by iceberg orders right so that is es let's go take a look at nasdaq and the 15100 level continues to act as resistance and order flow definitely looks looks bearish to me cvd icebergs and stops all falling i would definitely have been looking for shorts today so short set up at 15100 this resistance level uh multiple shorts and this 50 level 362 has acted as support nasdaq may be breaking lower and let's just see who is in price today so large cap tech is not as strong uh as it has been like yesterday microsoft apple apple looks slightly negative not much for microsoft i'm looking at the shades of red and green this is for the s&p 500 nvidia is still strong tesla strong it looks like some of the semiconductors are are strong here energy let's take a look at the nasdaq so kind of a mixed picture here nvidia and tesla strong and microsoft um broadcom google amazon meta apple not so much all right so nasdaq now has broken lower and order flow was uh just very clear here again cvd stops yellow line blue line iceberg orders all moving lower looks like the next target down is uh 15 000 so nice almost a hundred point move lower uh as i've been talking today so i hope somebody um somebody got that trend break move lower trend break let's take a look at the s&p 500 yeah it is following following suit not as clear read in uh order flow here let's take a look at hero leave it on the 30 minute rolling window period and pretty clear read on hero here for the short again in a 30 minute rolling window period it took price a while to respond but did start moving lower all right so nice afternoon short setups for the s&p 500 uh and nasdaq all right my time is up i want to thank you everyone for watching thanks for your questions and comments and karma fx thank you much uh thank you very much for participating all right i will see you tomorrow remember uh tomorrow we have ppi ppi report comes out at 8 30 a.m eastern time and then the fomc announcement at 2 p.m so i will go through my positional analysis and if i have time i'll review a few setups and then we'll look at the live market beginning at 2 p.m eastern time so thanks again thanks everyone for watching and i will see you tomorrow