 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 disclosure. General disclosure, all Bookmap, Limit and 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 involve 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 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've a two-step process for trading and the first is planning and I use positional analysis. I look at how traders and market makers are positioned in the options market and how those positions change from day to day to develop a thesis regarding the expected trading range and volatility for the day as well as a directional bias. And the second step of my process is execution. And I look at real-time order flow in Bookmap and real-time market maker hedging flow in Spontagama Hero to confirm my thesis and for setups for entries and exits. And just to be clear, I will be talking about setups today in an underlying asset like ES Futures or AMD stock, for example. My analysis is based on the options market. Setups can be taken any number of ways with futures, shares of stock, or options. Questions and comments are welcome and I will be watching both the Options-Doug chat channel in Discord and the chat in YouTube for your questions and comments. So again, please feel free to post your questions and comments. My agenda for today, what I want to talk about, first of all, go over news items, economic data that came out this morning, big market mover, and then talk about next week. Then I'll go through my positional analysis for today. I'll review some setups and then we'll take a look at the live market. So when I get to the live market, if anyone has any stocks that you want me to take a look at, please post and I will take a look at them. All right, let's get started. So first of all, economic data today. There were a couple of major items that came out. First this PCE data that came out at 8.30 a.m. Eastern time and it looks like this data came in pretty much in line with forecast but lower than the previous numbers and the market interpreted this data as very bullish. There was a very bullish reaction. The market was already up pre-market and just continued accelerated to the upside. And Karma FX, hi DP, hi DP. Hello Karma FX, glad you're here. Welcome. All right, so that was the first data item that came out this morning and then also consumer sentiment came out at 10 a.m. And that was also greater than expectation and also greater than the previous number. And again, interpreted bullish like everything else today. All right, so that's the news items for today. Market seeing the news is very bullish. And next week, just a reminder, Tuesday is the Independence Day holiday in the U.S. And Monday markets close early. They close a half day session for stocks and futures. So I will not be presenting on Monday or Tuesday. And I don't think anyone at Bookmap will be presenting on Monday. So anyway, I know I will not be presenting on Monday. So nice four day weekend here. All right, let's get started with the positional analysis now. So this is the S&P 500 futures. And before I take a closer look at this chart, I want to take a look at an SPX chart in a, this is in thinkorswim, a 130 day one hour chart. And let me point out some things on this chart. So first of all, price action, just showing price and levels. And this is the peak running into the June expiration. So that is the June expiration, Friday the 16th. And that was a very call dominated expiration. All the call gamma expired. And then the market moved lower until Tuesday this week. And then has recovered all that and more. So now the SPX is trading above the level that it traded in that call buying rally, the rally that was fueled by a frenzy of call buying up into the June expiration. Now today the market is moving higher, SPX higher than that level at the June expiration. Give me just a moment here. I need to, I'm getting some alerts in my ear. And I forgot to turn off. Whoops, let me just turn these off. All right, so let's go back to the SPX. So now price trading higher than the level at the June, Friday, monthly expiration. Let me point out some levels on this chart. First of all, the lower and upper weekly expected move shown with the dash purple lines. And SPX is trading well above that level, the upper weekly expected move. The dash blue lines are showing the lower and upper weekly daily expected move. SPX also trading well above that level. Let me point out some spot gamma levels on this chart. So these are proprietary spot gamma levels provided to spot gamma subscribers. First, there's the put wall at 4,000. And that is the strike with the largest net negative gamma that can be expected to act as support. Not in play today, it's well out of range. The next level is the volatility trigger at 4,345. That did drop lower from yesterday. It was at 4,360 yesterday, so dropped 15 points lower. That has spot gammas proprietary gamma flip level. Below that level, market makers position on the gamma curve is negative. In a negative gamma environment, market makers have to trade with price to hedge their delta exposure. And that tends to increase volatility. On the other hand, 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 hedge their delta exposure. And that tends to subdue volatility. And the next level is the 4,400 level. That's right here. And that is the absolute gamma strike, the strike with the largest absolute gamma, as well as the call wall. And the call wall is the strike with the largest net positive gamma. Normally, act expected to act as resistance and not doing its job today. SPX gapped up above that level and is trading 54 points, 55 points higher than that level right now. Okay, so those are the spot gamma levels. Again, the key here is that SPX is trading above all expected levels and ranges. Trading above the call wall, the upper weekly expected move and the upper daily expected move. All right, let's take a look at another thinkorswim chart, then we'll get to book map. This is SPX in a one-day, one-minute chart showing the levels that are in play for today. And here is a key level, this 44, 49 level. That's a combo L2 level, combining SPX and spy gamma into one level. And note that level acted as resistance earlier today, acted as resistance again and now acting as support. So key level for SPX today. All right, let's take a look at book map. And in book map, I have this cloud notes column here. And this is my cloud notes and I have spy levels shown here with this 444, 444. That is spy 444, 444. I also have the SPX combo levels. There's that 44, 49 level. Acting as resistance, now support. And note another key spy level here. There's the absolute gamma strike at 440, also the call wall. And for spy, the absolute gamma strike did move up five points yesterday from 435 to 440. And that level acted as the launch pad for the acceleration hire, the launch at the 8.30 a.m. data release, PCE data. So again, the spy 440 absolute gamma strike. So the SP500 trading above the SPX call wall as well as the spy 440 call wall. And note that spot gamma did say in the a.m. founders note they were expecting the SPX call wall to move higher next week. And certainly with this price action, that's likely. All right, so those are the levels that are in play for today. Primarily the lower level, the spy 440 level, the launching pad for the move hire after the data release, the SPX 449 level, and now that it acted as resistance and now support. And shifts and levels I talked about. So for, again, for SPX, volatility trigger shifted lower, call wall shifted lower. For spy, the volatility trigger shifted lower and the absolute gamma strike shifted higher. And karma FX, you're very welcome. So karma FX said, Tom said he will be presenting on Monday. So maybe so. I understood from Bruce, the director of education at Bookmap that Bookmap was not presenting. Maybe he's not presenting, I don't know. But yeah, maybe I don't. So anyway, yeah, we'll just take that as it is. So Tom may be presenting. All right, so that's the SP500. The levels are in play for today. Shifts up and down on levels. And remember all of that is based on open interest. So that came from data overnight. So that is, that was before the data release this morning. And apparently the data had a big impact on price action today. Let's take a look at NASDAQ. And I'm going to go to a, all right. So this is the QQQ, one day, one minute chart. And the key level in play for today is the QQQ370 call wall. And the call wall for QQQ has been at the 370 level for quite some time. Looking back in my notebook, also for about the last 10 days, it's been at the 370 level. And now price is definitely finding resistance at that level. So that is the QQQ, the primary level in play for today. 370 call wall, doing its job. All right, so Karma FX says now Tom says he is not presenting on Monday. So again, that's my understanding that nobody from Bookmap will be presenting on Monday. All right, so here's the NASDAQ. So I talked about the 370 QQQ370 call wall. And that is, you can't really see that here, but it is just behind this red label for NQ350. And then there's the NDX 15200 absolute gamma strike and the call wall at the 15200 level, also acting as resistance. So those are the levels in play note that NQ is trading well above its upper daily expected move, also upper weekly expected move. And it looks like NASDAQ launched from the QQQ360 level this morning. So those are the levels that are in play for NASDAQ. And again, I'm getting all this from my cloud notes. And I have a combination of QQQ levels, NDX levels, combo levels, as well as the daily and weekly expected moves. So I can see all of that in my cloud notes. All right, Karma FX, I do see your question. All right, so Karma FX asked, please educate me on the levels you set on your chart so I'm able to see how they parallel with those that I have set when you set support and resistance as well as overbought, oversold. So the levels on my charts, I have round number levels for QQQ. Well, let's take a look at the SMB500. So for the SMB500, I have spy levels, round number levels. And that relationship between ES and spy changes every day. I calculate that. I actually have a little think script that does that for me. So these are the set of the correct levels. And then I also have the spot gamma levels. And I calculate the difference between ES and SPX every day. And that is a little bit different than what spot gamma is using. So there's that combo 44-23 level. And there I have it. So I have a difference of about 38 points today. Spot gamma is still using a 47 point difference. So mine is closer to, mine is more accurate. So I have gamma levels, round number levels, and then also liquidity levels. And liquidity is more apparent in stocks, as we'll see in a few minutes. So that's what I'm looking at. And any one of these levels can act as supportive resistance. But I look at the call walls as more, they should act as resistance, typically do. Spot gamma has stats on this that show that they do act as resistance. And the market will often trade lower, maybe not today, but sometime in the future. Unless these walls roll higher. So I'm looking at any of these levels to act as supportive resistance. The reason is that, especially the gamma levels, is that market makers may have to hedge at those levels. Alright, so that is the NASDAQ, the SMB500. As far as shifts in levels go for the NASDAQ, there were none in NDX. And then for QQQ, the volatility trigger shifted lower and the boot wall shifted higher. But the call wall and absolute gamma strike remain the same. Alright, let's take a look at the Vana models now and see how market makers were positioned at the beginning of the day and how they could be expected to react. So first of all, this is the SPX Vana model. What this chart is showing is market makers delta exposure on the vertical axis and how that changes with price shown on the horizontal axis. There are two curves on this chart. The first, this light gray curve is showing how market makers delta notional changes with changes in price only. And then this 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. And that's a second order Greek hence the name of this chart, the Vana model. What this chart is showing is as price increases, market makers will have to sell futures to hedge their delta exposure. And that is typical of a positive gamma environment. On the other hand, if price decreases, market makers will need to sell futures to hedge their delta exposure. And this purple curve that adds in implied volatility showing that we'll have more delta notional to hedge than predicted just by the delta only curve. And that works two ways as price increases, they can buy back their short futures. So that's in a negative gamma environment. Again, SPX is solidly in a positive gamma environment. Let's check where SPX is trading now. So I've got about 44 53. So that's right above this line here. So the definitely again firmly SPX firmly in a positive gamma environment showing that market makers will need to their delta notional increases. They want to remain delta neutral. So they'll have to sell futures to hedge their delta exposure. And that tends to subdue volatility. Then on the other hand, if price decreases, they can buy back their short futures. So and again, they're trading against price both ways. All right, that is SPX positive gamma. Here's the Vana model for spy. And for spy at the beginning of the day, gamma notional was still negative, although much less negative than yesterday. I've got spy trading at almost 444. So around the bottom of this curve. So certainly there's no Vana tailwind for price and a price continues to move higher. Market makers will have to sell futures. Let's take a look at QQQ and also negative gamma, but less negative than yesterday. QQQ is trading just under the call wall at 370. So no Vana tailwind. And it looks like if price continues to move higher, there will be a headwind. Market makers will be selling futures. All right, let's take a look at the data. What I want to look at here is gamma notional. Market makers position on the gamma curve for SPX, spy, and DX and QQQ. And all these numbers did become more positive or less negative than yesterday. Right now, SPX, gamma notional at the beginning of the day, 749 positive. And certainly it will be more positive next week. And then spy starting the day minus 492. And that is less negative from minus 1084 yesterday. And then finally QQQ also negative still at the beginning of the day, but less negative than yesterday. So that's market makers position on the gamma curve at the beginning of the day. All right, let's take a look at some setups. So let's go back to the S&P 500. And obviously the way to trade this was just to find a way to get long. All right, so let's take a look at that in closer detail. First thing I want to do is take a look at spot gamma hero. What this chart is showing is price with the white line and the hero signal with the purple line. And hero is the hedging impact real-time options. This is real-time showing a real-time options trades and market maker hedging flow responding to those trades for a combined signal for SPX, spy, XSP, and ES futures. All combined into one signal. Putting call transactions for those instruments combined into one signal. I'll take a closer look at this chart, but first I want to take a look at the individual components. So first is SPX. And note this number is positive 1.67 billion SPX, almost 1 billion positive. Spy, also positive, 246 million ES futures, also positive. And this is, I want to zoom into this so I'm just showing the, this is the cash open right here at 9.30. So, you know, of course, options trade on ES futures before the cash open. All right, so it took a little while, but options traders in ES started to take positive delta positions around 9.50. All right, so let's go to the combined signal. Zoom in on this. So it goes so the cash open is right there on the left of the screen. And this is showing, again, positive net, positive delta positions. Let's see what traders are doing. And this is pretty typical. They are buying calls and buying puts, but call buyers are winning. I'm looking at the rising orange line shows showing that traders are buying calls. That notional value is positive. So that's positive delta. They're also buying puts shown by the falling blue line. Also this negative number here. But again, call buyers are winning. All right, so that's SPX. And again, the, you know, obviously the way to trade today was just to find a way to get long. So let's go to book map. I'm going to zoom in on this morning session. So this is at the 8.30 AM data release. And then the 9.30 open cash open right here. And note at that point that buy stop orders start to fuel the move higher. Let me just zoom around just a little bit so we can see more of this. So I play a trend like this just looking for pullbacks, looking for ways to get long. Any pullback, shallow pullback, pullback, pullback, pullback. Any way to find a long entry in the trend. And note that again, this was fueled by stop orders shown by this rising yellow line here. Also these numbers here, buy stop orders, all fueling the move higher. Up to and installed again at that 449, 4449 level, combo two level. And also larger traders were buying with iceberg orders. That's shown by the rising light blue line there. And kind of interesting order flow up to this point. Large traders buying with icebergs, again shown by the light blue. Also buy stop orders, positive, shown by the rising yellow line. But CVD was started to shift negative. And actually pretty much sloping down from the cash open. That's shown by this dark blue line here that shifts negative to the purple line. Just around 1045. But the options traders and large traders with iceberg orders as well as buy stop orders were enough to fuel the move higher. Scroll a little bit. And the first, there's the first deep pullback around 1050. And then another pullback about an hour later to the spy 442 level. And from that point, that second deep pullback to the 442 level, price now continuing higher. And let's see where it could be headed. So ES is up at the spy 444 level, 444 level, testing that. And then up above is the ES 4500 level and spy 445 level above that. So karma FX, again, I'm just looking at that. At that point, looking at the round number levels as potential targets. Let me tighten up the heat map there so this liquidity can also act as target and potentially resistance. You never know if something is going to be sort of supportive resistance until it price reaches that level, but not much in the way of gamma levels above that SPX 4449 level. All right, so that is the SB 500. NASDAQ, pretty similar story. Although hero options trades really not supporting the move higher. So here SPX, again, options traders taking positive delta positions, buying calls, helping to move price higher, and then NASDAQ, a different story. This is a combined signal for NDX and QQQ. Let's take a look, puts in calls, zoom in on this. So in NASDAQ, the combined signal for NDX and QQQ, which is mostly QQQ, traders are buying puts. That's shown by the falling blue line and the negative notional value there. And they're actually selling calls as well. And that's shown by the slightly falling orange line and also the negative notional value. So both the numbers negative. So they're selling calls and buying puts does not seem to have much of an impact on NASDAQ today. So as far as options trades and hero goes, I think for this week at least, they've been easier to read in stocks and the SB 500. Options traders not having as much of an impact on NASDAQ this week as I recall from previous days. All right, let's take a look at book map, go to NASDAQ. Although order flow was definitely positive. Let's zoom in on the zoom in on this morning session and note one thing helping to drive NASDAQ higher. So as opposed to ES order flow, all very bullish. So first of all, what I see is right at 830 a.m. the data release large traders come in with iceberg orders. And that is shown that may be hard to see there's a number on top of it. E677 slash three that showing that 677 contracts iceberg orders executed and three transactions at least at this aggregation level. Very bullish large traders coming in buying with iceberg orders and note also the rising long tool. Look at the rising dark blue line cumulative volume delta rising also rising stop orders. So aggressive buyers and buy stop orders fueling the move higher heading up to the remember the QQQ 370 level is obscured there but it is there. That's that's one of these two white lines. I think it's lower when you just can't see the label in my cloud notes column. And then right above that the sorry I keep getting the wrong tool. Right above that the NDX absolute gamma strike call wall targets and then resistance and the order flow the price action in NASDAQ. Supported more by order flow here rather than the options traders. All right let's take a look at some other stocks and then we'll get to the some stocks and then we'll get to the live market. So really the theme of the day I'll go through these pretty quickly. Theme of the day was call buyers are back. Let's start with AMD going to separate outputs and calls. Again though go through these pretty quickly. So there in AMD call buyers back. So there you go Ellis or Alyssa. I'm not sure. So anyway there's AMD. Let's take a look at book map and note that 115 is the call wall. You can. So there's karma FX back to your question. The liquidity levels in stocks are very visible. This is pretty typical that these large limit sell orders shown by this dark band at the 115 level. These orders come in typically at the cash open at the 930 cash open stay in until they're staying in the order book until they get filled. And this acts as a magnet for price and can act as resistance. So we know that 115 is the call wall and that is expected to act as resistance. So adding some additional reason for that 115 level to act as resistance. But until then I look at it as a price target. Right. So that's AMD. The next one is meta. And I'm just reviewing a few setups from this morning. And hard rock lobster rolls as it seems like the liquidity is a lot less obfuscated on equities versus indices or futures. And that's exactly correct. Yes. The liquidity is a lot more visible in equities not nearly as transient as it is in futures. This liquidity this is very typical again at the 290 level for meta is the call wall. Liquidity comes in that level just a minute after the cash open and it stays there until it gets filled. Traders keep their limit sell orders in this case at 290 until they get filled. And it's very visible and they typically stack up at the round number levels and especially for higher price stocks at the fives and the zeros. And you know occasionally you'll see some liquidity there front running the 290 level but they did pull that. So the liquidity there right around 289 80 was pulled about 1242. So there's case in I think you're saying this makes book map trading almost a sure thing. I guess there's nothing like there's no sure thing but I think book map definitely provides an edge a new way of looking at the market as well as the options based analysis. And yeah I think both of these the order flow and book map and the hedging flow and positional analysis with spot gamma definitely provides an edge. And hard rock lobster tail lobster roll says thanks for the insight is this typically because equities generally have less HFT high frequency trader going trading going on. I'm not sure. You know I'm sure there's plenty of high frequency trading and in futures and equities. You know this is just observe. Observe behavior. Just what I've I've been using book map for several years. And this is what I've always seen with equities. And hard rock lobster roll also says I had no book map had no idea book map had live coverage. I appreciate this lot. Thank you very much. And yeah book map has free live coverage almost all day and just go to the if you go to the book map website. You can see the schedule it may change a little bit every day but I'm on every day at 1 30 p.m. Easter time. And I cover stocks and futures with analysis based on the options market. All right so there's meta again 290 call wall target. And the way that I look at that I just think that buyers seek sellers sellers seek buyers. And that can act as a magnet for price. All right let's take a look at hero for meta. And rising orange line traders are buying calls. They're buying a few puts. Call buyers are winning. Again there's the 290 call wall. Microsoft call buyers really came in in the first hour this morning and then leveled off and price leveled off as well. And note the call wall at 340 and price did breach that level and continued higher. Let's go take a look at book map for Microsoft. There's the breach of the 340 call wall price continued higher and then came back and checked that level. Remember Hebrew was showing that traders stopped buying calls. It looked like around 1015 1030 and then price started to move lower after that and move back to that 340 level. All right the next Nvidia. Let's go take a look at hero and we'll see that call buyers were back in Nvidia. So just to clarify what I'm looking at so when traders buy calls market makers are selling the calls. Options market makers are selling the calls and they have to buy stock to hedge their delta exposure. And as the stock continues to rise continues to move higher they have to continue to buy calls to hedge their delta exposure. They want to remain delta neutral and that is a powerful force that can continue to move a stock higher. So that's what's going on in Nvidia and just like Microsoft there's a call wall breach the call wall at 420. And note that as traders took their foot off the gas with the calls price moved lower and they're also selling puts but the call buyers by far are dominating and driving price higher. Let's go back to book map. There's the 420 call wall breach and note the liquidity higher liquidity at the fives and the zeros. They're at 415 420 price move right through that. Then the sellers consumed or buyers consume that liquidity price move lower and then the sellers came in. You can see just a couple minutes later. So they remained in the order book since then. So a buy sweep up in that liquidity at the 425 level price move lower and that buy sweep is shown by this. That number there in the small bright green dots by sweep up in that liquidity. They get filled price moves lower as traders stop buying calls. Then finally let's take a look at Tesla Tesla right. So Tesla let's go to hero take a look at Tesla. So there you go and Tesla is trading above the 280 call wall traders of buying calls and selling puts. I mean buying puts call buyers are winning. All right so hard rock lobster roll asked you get DTE information about the calls being bought. So yes. So now for for the stocks typically have a weekly expiration as opposed to index products like spy QQQ SPX that have options that expire every day. So the zero DTE options or the next expiry here shown in hero that is the zero DTE for spy QQQ SPX. But the next expiry for Tesla or for stocks any of the stocks on this list are the Friday expiration and since today is Friday they are the zero DTE. So let's compare the orange line with the green line. So the orange line is showing calls that expire today. So about half of this call buying today is in calls that that expire today. So this number I'm looking at here is a positive 68 million versus positive 138. And there's another way to do this. Let's go to go to thinkorswim. Let's go to Tesla. And this is showing Tesla call volume. So what this is showing the call with the highest volume is the 30 June that expires today and the 265 strike. So that is that's close to the money just slightly out of the money. This is volume for today. So according to thinkorswim the the highest volume is at the 265 strike that expires today and karma FX. Thank you very much. Tommy if you don't like what you see just please move on. This is free. And a lot of people are finding value in this. All right so there you go. According to this in and hero about half of the volume is in zero DTE and that's looking at all of the all the strikes being traded. All right I've got a few minutes left. Let's take a look at the live market. Let's clean this up. Go to the S&P 500. And note the hero line is pretty much flat really from about 1240 1251 o'clock overall pretty flat. So what I'm going to do is I'm going to change the rolling window period. So I get more emphasis on just the last in this case the last 30 minutes of data. And so that helps a little bit that note now that hero is trending slightly lower. And let's see what they're doing. So in the last 30 minutes they're still buying calls. And they are buying puts put number larger slightly it was now it's about the same back to the total signal. Let's take a look at NASDAQ again and a 30 minute rolling window period. All right let's go take a look at book map. Take a look at S&P 500. So order flow here continues to be bullish. My stock orders continue to move higher. Larger traders buying with iceberg orders. And Stephen asks what is the term rolling window referring to exactly. And that is the look back period for the hero signal. So before typically the default is one day. So I'm looking at accumulative value for all of the options transactions. And changing that rolling window to 30 minutes just looks at the last 30 minutes. So when that first minute drops off another minute passes then it's looking at the next 30 minutes. And so on as every minute passes just like a 30 period moving average versus a longer term moving average. And note here larger traders coming in iceberg orders as price is making new highs for the day. All right so that's S&P 500 continuing to move higher after the bounce. And the reversal at the SPI 442 level that occurred just before noon. Heading up again now breaking above the SPI 444 level up to ES 4500 level. Let's take a look at NASDAQ. All right we got a series of questions and comments on YouTube. So hard rock lobster roll ask what sort of rentries do you look for on such large gap days. So this is can be difficult and a turned up day but just look for pullbacks. I talked about that when I was talking about setups in the S&P 500 just looking for any pullbacks. Let's go back. Here's some more shallow pullbacks earlier and then deeper pullbacks. And it is can't be difficult but you know just watch order flow, hedging flow and look for pullbacks. Here this deeper pullback again to the SPI 442 level and then pullbacks as price continues higher. And hard rock lobster roll says I find myself struggling to buy into trends with large gaps to fill right below and I do too. So I guess sometimes you just have to trust the numbers what hedging flow price action are showing. All right let's go take a look at NASDAQ. Now NASDAQ here I think it makes a little bit more sense. Again here is the resistance level this NDX 15200 call wall and again just below that. Let's take a look at QQQ and Karma FX back to your question. So this is the QQQ 370 call wall definitely doing its job today acting as resistance. SPX and SPI not so much but definitely the QQQ 370 call wall acting as resistance as expected. Price target. Here this deeper pullback a little bit more obvious back to NASDAQ. Now looks like larger traders are starting to sell this with iceberg orders shown by that rising light blue line. Let's take a look and see what options traders are doing in NASDAQ. 30 minute not giving much clarity really not much clarity overall net negative delta still for the day. So no no help for a move higher for from options traders. So hard rock lobster will ask so when people buy calls. So when market when traders buy calls market makers sell the calls and how and when they hedge I think depends on the instrument and the. You know I guess the quantity of trades what their delta position is for a volatile stock like Tesla. Market makers will also often hedge almost simultaneously with with options trades but in a way the overall concept again is that traders are buying calls market makers are selling the calls. That's a negative delta position they want to remain delta neutral so they have to buy stock to hedge their delta exposure and any time. Any details beyond that I. I don't think really better. So again traders buy calls market makers sell the calls they have to you know that transaction happens. You know as soon as that transaction transaction happens market makers are short the calls and when they hedge may vary depending on the instrument and their current delta position. So they're not they're not buying puts they're buying when they're buying they're hedging with stock. So for Apple AMD Tesla Nvidia they're hedging with stock and with index products like options trades in SPX spy and ES they're hedging with futures. I think it's just so much more efficient for them to hedge with futures. You know one ES contract equals 500 years of spy. So yeah it does vary per trade per instrument. One thing that's really helpful for trading index products and you can see here's an example for for Nasdaq. Is there sometime a lag between options trades hedging flow and price action and that gives you a divergent setup. So that's a good illustration of this right here with with Nasdaq note falling hero signal price continues higher. And then starts to move lower about 1020. So let's go take a look at Nasdaq and see where that move actually stopped started. And that is right above the well we can see here. So here's that 15200 level. Remember that's the NDX call wall 15200 price overshot that a little bit tested a few times. And then started to move lower. So the way that I would treat this is in an index product this divergence happens much more often than in stocks. There's more of a direct confirmation correlation between options trades hedging flow and price action in stocks. Again this divergence setup here it took really almost an hour to really play out. But there's the final test of the 15200 level a level that you expect to act as resistance as traders are taking negative delta positions and finally price moves lower. So I would wait for a reversal at a key level like the call wall and then confirm that with order flow and book map. So let's go take a final look at Nasdaq and book map and this is around 1115 right here. Let's zoom in on this. So we know from looking at hero that traders are taking negative delta positions and Nasdaq is slowly making a series of lower highs. I've got two resistance levels here at 15200 and again the QQQ 370 level is obscured under that 15350 label NQ. I know that there really no more bystop orders fueling the move higher. Kymla to volume delta is slowly decreasing and it takes a while to play out. But there was a good short setup right here with the final test of these call wall levels and the price moves lower. So that's how you can use hero in a index product for a divergence setup. You see hero going one way, price going another, moving up to a level that you expect to act as resistance or support. And then again it took a long while to play out but price did move lower. All right, Gray says, crazy week. I agree. Covered so many great setups. Doug, thank you for all your time and efforts. Truly gaining edge with your education. Thank you very much. You're very welcome. Thanks for your kind words. And with that I'm going to wrap it up today and Hard Rock Lobster Roll says thanks for being so responsive Doug. Really helpful. Glad I could help. That's why I'm here. I appreciate everyone's kind words. You're very welcome. Again, thank you. Thanks for watching. Thanks for your questions and comments. We'll be back on Wednesday. Everyone have a great holiday weekend and again I will see you on Wednesday. Bye.