 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 and I want to welcome everyone To this final trading week of the year. I hope everyone had a wonderful Christmas holiday And again, we'll wrap up the year this final trading week of the year So thanks for joining me today All right before I go any further I need to go through the disclosures General disclosure all bookmap them in 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 Here's my contact information the best way to get in touch with me is through discord My name on discord is Doug P also in bookmap discord There's an options dash Doug chat channel. That's a great place to post questions Comments and content related the topics of my channel and the topics of my presentation the topic to the channel and the Topics of my presentation of which I'll go through in just a moment I'm also on X formerly known as Twitter. My name there is at Doug plus The focus of my presentation today and the focus of the options dash 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 have a two-step process for trading and the first is planning and I use positional analysis I look at how traders and market makers are positioned in the options market and how those positions change from day to day To develop a thesis regarding the expected trading range and volatility for the day as well as a directional bias And the second step in my process is execution 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 for entries and exits and When I talk about setups today, I will be focusing on an underlying asset and setups in those Assets can be taken any number of ways for example the S&P 500 setups can be taken with the S futures spy shares spy options spx options, or even ES ES options and Also note that the setups that I talk about generally are good for day trades Swing trades or even longer term trades depending on your time frame questions and comments are welcome and I will be Watching both the options dash Doug chat channel In discord as well as the chat and YouTube for your questions and comments Please feel free to post and I'll do my best to answer your questions and welcome Jack Glad you're here. Happy dollar holidays to you Welcome back haven't seen you in a while All right, here's my agenda for day and I forgot to change this This is Wednesday December 27th So here's my agenda for today. First of all, I want to go over news items and economic economic data and events basically there are none and positional analysis I'll go over my positional analysis my planning For today, then I'll review some setups from earlier today And then I'll take a look at the live market and when I get to the live market If anyone has any stocks they want me to take a look at please let me know and I'll be glad to do that Or this could started So first of all economic data and events very minor this week. No high-impact events the jobless claims out tomorrow and That's that's really it just again low and a few medium impact Economic events and then it will pick up next week All right, I also want to mention Give me just a moment There's a book map has a sale going on. I posted links in YouTube and the discord Chat Also, here's the book map site and it's on annual subscriptions so if anyone is On the fence thinking about book map or a current Monthly subscriber and you're very interested in an annual subscription. This is a great time to take advantage of that So here again, everybody New year sale for annual subscriptions on book map and you can see the details down below so again, I posted links and both Book map discord and the book map YouTube channel For this sale All right, Antonio asked says I'm new to book map. Can you explain how book map can help me profit? What do I look for when using all right, so there? Thanks for posting welcome glad you're here. There are a number of different ways to use book map I will talk about how I use it today. I Suggest you go to the If you're just interested in book map in general go to the Go to learning center here to get started Also book map has a variety of live streams every day with different approaches Bruce is an order flow trader Scoppelsini futures trader J trader stocks traders Stock trader Tom B also a futures trader and I focus on stocks and options so there are not these are Streams that occur Some every day some every week and I'm on every day 130 p.m. Eastern time and I talk about how I use book map all right, let's get started with positional analysis now and First of all, I want to start with the SB 500. This is the ES futures and book map great Antonio says he's here for options, so you're in the right place and My focus really is on how the options market has an impact on stocks and futures And again those setups can be taken any number of ways with with futures shares of stock or options All right, so this is the SB 500. I want to start Here first of all, I want to take a look at a larger time frame so I'm going to go to the underlying index which is the spx and This is a one-day chart. I want to start with a larger time frame and this is the Rally that begin on October 30th the rally still intact and The rally is occurring has occurred for a variety of reasons IV collapse put Vanna rally Treasury yields falling FOMC reports economic data Like CPI reports coming in lower than expected. Anyway, the rally that began October 30th continues Looks like it may continue into year-end and then we'll see about next year All right, so that is a one-day chart and just for reference this rally that began in March middle of March Was good for 800 points in spx. All right Now so we've looked at a one-day chart. Let's take a look at a one-hour chart now This is a 30-day one-hour chart again and think or swim here. I want to focus on the levels Showing on this chart. So first of all the dash purple lines are showing the lower and upper weekly expected move This is based on the options market. I update this once a week. So those lines Stay in place all week and then the dash blue lines are showing the lower and upper daily expected move These are updated once a day SPX trading within both of those ranges both again based on the options market All right, the dark red lines are showing spot gamma levels these are Levels that spot gamma Provides to their subscribers on a variety of trading platforms spot gamma takes Open interest applies their own proprietary algorithms to come up with these levels and each level has a Certain significance. So I'm going to go over the key daily levels now. So first of all, here's the put wall That's the strike with large net negative gamma and that can be expected to act as support And that level did not change from yesterday, but yesterday it did drop from Friday So now the put put wall down at 4,500 and the next level up is The volatility trigger at 4,745 That a spot gamma's proprietary volatility flip low 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 delt's exposure and that tends to enhance or increase volatility on the other hand above that level like SPX is trading now Market makers position on the gamma curve is positive in a positive gamma environment They have to trade against price to hedge their delt exposure and that sin tends to subdue or decrease volatility Leading toward typically a thesis of more range bound Mean reverting trading days and the next level up is 4,800 That is first of all the call wall That's the strike with the largest net positive gamma that can be expected to act as resistance And that is also the absolute gamma strike. That's a strike with the largest Absolute negative and positive gamma so that is where most of the gamma weighted open interest is concentrated And we'll take a look at the absolute gamma levels in just a minute. So that's the The main or the key daily levels that I wanted to point out potential floor 4500 the put wall and the potential ceiling at 4800 the call wall an absolute gamma strike and of course SPX is much closer to the call wall than the put wall and then finally let's just take a look at a one-minute chart So we can see the levels and play for today And there's not really much at least shown on this chart All right, let's go to book map now aren't in book map. I have my own cloud notes So I so I can show SPX levels No, this is 4780 resistance level that was not shown on the One-minute chart that we just looked at this was noted as Resistance in the spot gamma. I am founders note. So on my own cloud notes I can put that level in and that level did act as resistance Earlier today before the cash opened and then again right around 10 a.m. And that was a good Entry point for a short right at the 4780 level and also this 47 476 Spy level that's a large gamma two level so that those two levels together Acted as resistance before the cash opened and then right around 10 a.m. And a good entry point for a short And then I also have the spy 475 absolute gamma strike and that level acted as support earlier today Good entry point for a long just before 11 a.m. so note there is a difference between in price between ES and SPX And today it is somewhere between 48 and 49. So I'm using 49 and So I'm showing the SPX 4780 level at ES 4829 again ES minus SPX is 49 points All right, so that's the yes to be 500 Trading in a pretty narrow range today. Now it looks like it is breaking out Above the prior resistance level that did act as act of support and one other thing there was a five-year Note auction today at 1 p.m. And It looked like the SB 500 was already moving higher. We'll take a look at and see what options traders We'll take a look and see what options traders were doing They it looks like they were Taking positive delta positions before this note auction, but that was a catalyst for a move higher and Paul asks is there an audio problem? Can someone confirm? Maybe in YouTube and in discord. Can you hear me? All right, Jack says No audio problem in the YouTube So I don't imagine there's an audio problem in discord as well All right. Thank you Jack. Okay. All right Paul switch to discord. All right, Bubba says boo boo Not sure I'm pronouncing that right. I know it. No audio problem in discord. All right, great. Let's move on. All right, so We'll take a look at setups in a few minutes, but again. This was a five-year note auction and now the SMB 500 grinding hire All right shifts and levels for SPX from yesterday to today. There were no shifts and levels and Then for spy there were a couple shifts and levels the volatility trigger shifted higher one point Not really significant, but the call wall shifted higher from 475 to 480 Getting closer to that SPX 4800 call wall so that is bullish that potential Ceiling for spy now moving higher to 480 All right, let's take a look at Nasdaq now. All right. This is the NQ futures in book map and I do want to take a look first of all at a QQQ chart so we can isolate the QQQ levels and play for today And the main level so far has been this 411 level Acting as support Resistance and now after the note auction QQQ has broken out above that level large gamma 1 means that is the most important level of the or the highest amount of gamma-weighted open interest Ranked from 1 to 5 1 being the most significant and note for QQQ The volatility trigger did to move higher and the call wall moved higher to 415 so from 410 to 415 so that just like spy the potential ceiling for price has now moved up to 415 and that is bullish and also for QQQ the absolute gamma strike Moved up from 409 yesterday to 410. So that's also bullish All right, that's QQQ And then finally, let's take a look at NDX Volume dots just a little bit go to NDX see if there are any levels and play for today and Not really and note that NDX is trading above its call wall and above its Absolute gamma strike. All right, let's go back to book map NQ futures So just like Yes, I have my own cloud notes So I can show QQQ levels And NDX levels, there are no NDX levels on this chart. So here's that 411 level Acting as support right at the cash open and then resistance and now NASDAQ trading above that level and Hector Welcome glad you're here Could be possible to analyze in Q or in Q or ES. I'm just I just already analyzed ES and I'm going over in Q now And I'll talk about setups in a few minutes All right, so now for right now. I'm covering the levels and play as part of my positional analysis And I talked about shifts and levels The primary shifts and levels the most important again the call walls for spy and QQQ And then the absolute gamma strike for QQQ. All right, Antonio. I will talk about CVD when I get to setups All right, let's take a look at gamma notional to see how market makers were positioned on the gamma curve at the beginning of the day This is part of the spot gamma AM founders note provided to spot gamma subscribers Every morning when I'm going to take a look at here is gamma notional This is market makers position on the gamma curve at the beginning of the day. This gives me a sense of the Expected trading range and volatility for the day in a positive gamma environment again. I'm looking for Lower smaller trading range lower volatility All right note all these numbers are positive again So for an index spot gamma assumes that Traders are short calls market makers long calls hence the positive gamma and in this positive AM environment again, they have to trade against price to hedge their delta exposure So note all these numbers did shift higher from yesterday Became more positive except for spy which really remained unchanged so positive gamma and I'm gonna skip over the Vanna model. There's really nothing to see here Not much of a Vanna headwind or tailwind in the current environment So let's take a look at the absolute gamma strikes just to get an idea of Where the gamma weighted open interest is concentrated. I'm going to start with SPX zoom in on this chart. So this is the 4,800 strike That's the absolute gamma strike the orange bars Are showing call gamma or for the Market makers that's positive gamma and The blue bars showing negative gamma or put put gamma blue bars put gamma So this is pretty obviously this strike with the largest absolute positive negative gamma and a positive gamma environment that it tends to Attract price so looking for price To focus on this level, especially as it gets closer the closer SPX gets to that level the the amount of gamma will increase and then here's the 5,000 level and this is That has been the call wall and also the absolute gamma strike a few days ago But now that is concentrated more at 4,800. All right, so that is the SPX let's take a look at spy and for spy 475 is the most important level That is the absolute gamma strike and note the call wall is up at 4,800 for for 80 and That's pretty obvious. You can just take a look at the call gamma and see how it dominates So the orange bar minus the boo bar that gives us the call wall at 480 So the gamma-weighted open interest though is concentrated at 475 and then finally for qqq There's the 410 strike. That's the absolute gamma strike All right, let's take a look at some setups now and first of all so my thesis for the day was looking for lower volatility and Slightly bullish considering the the moves higher and the call walls for Spy and qqq All right, let's take a look at some setups now I'm going to start with the SB 500 and This chart is showing the this is the hero signal hedging impact real-time options This chart is showing price for SPX with a white line and the hero signal Showing options trades and market maker hedging activity for a combined signal for SPX spy Xsp and ES futures and Rising purple line indicates traders are taking positive delta positions So when traders take positive delta positions Market makers take the opposite side of that and they have to buy futures to hitch their delta exposure So they're taking negative delta positions and they have to buy futures ES futures to hedge their delta exposure All right, let's take a closer look at this chart now To zoom in we'll take a look at a couple of setups So first of all in the morning. I mentioned this before Initially traders were taking positive delta positions and just before 10 a.m. They started taking negative delta positions and that coincided with that reversal lower at the 476 4780 level that had acted as resistance Earlier in the day So let's go take a look at a book now Gonna zoom in so we know this level acted as Resistance earlier in the day earlier in the day Right here right right around 830 access resistance again So really the primary clues for this setup was the shift in hedging flow and hero as well as the potential resistance at that level Sorry about that turn break ES starts to make Makes a lower high note the shift in Order flow here the volume dots are showing Market buy minus sell green dots indicate there are more buyers than sellers Magenta dots indicate more sellers than buyers So up until this reversal right around before 1015 All these lines in the sub chart were pretty flat So cumulative volume delta shown by the pink line flat The blue line showing iceberg orders, so there were no buyers or sellers Until price started to move lower and then when price moved lower Cell stop orders helped to fuel the move lower that shown by the yellow line also the on chart indicator All right, so if you were patient, there was a short set up. All right, let's take a look at this most recent long setup Let's go back to Go back to hero zoom in on this a bit And note the very strong correlation between options trades hedging flow and price action so Hedging flow, you know this to me this shows me that options trades and hedging flow are a very Strong driver of price today. So let's talk about the the long setup before the 1 p.m node auction note first of all this flow alert coming in right around 1240 Indicating significant options activity And according to spot gamma these flow alerts are often good for a mean reverting trade All right, so that flow alert comes in And then the hero signal switches from negative delta to positive delta Price responds pretty quickly Yeah, it looks like there's another Pretty sharp move lower All right, so let's go back to book map now So here's that reversal hire that I was talking about you can see all the aggressive buyers coming in Right as options traders started taking positive delta positions All right, this is uh keep in mind. This is the uh Christmas week the week between Christmas and New years and volume is light And this potential move There's a large potential For these sharp moves that come out of nowhere All right, let me check for questions And rob says rob. Hello. Welcome glad you're here Would it be correct to say for a reversal setup? We want to see either a flat or divergent CVD Yeah, that would be a You know one of many things that I would look at So I look for a A confluence of of events. I'm looking at order flow and book map hedging flow and and hero to develop a thesis for a setup Or a narrative for a setup So, uh, you know, I'm not necessarily looking at cvd only But cvd is certainly a very strong directional indicator Uh in futures not necessarily in stocks, but I do look at it in futures All right, so that was the short setup this morning long setup and then the um Kind of the bottom dropping out. Let's take a look at let's go back to hero Take a closer look at this Zoom in a bit. Uh, first of all, let's see Uh, note that hero started moving lower somewhere between 140 and 145 hero making lower highs and price responded, uh, maybe 10 15 minutes later So we can take a closer look at this first of all, let's see what Uh traders were doing in terms of puts and calls So the blue line is showing puts A falling blue line indicates traders are buying puts sorry about that spot gamma still working on this issue so traders were buying puts that started about, uh Just after one just after that node auction They were buying calls pretty aggressively took their foot off the gas And then just before two they started selling calls and price moved lower both the starting just before two the Orange line a blue line moving in the same direction. That's a very powerful Directional indicator All right, let's go back to the total signal now. Let's take a look at the next expiry Which for the sb 500 would be zero dte So this is options trades that expire today And note the very strong correlation Correspondence between the two lines. So the total signal shown in purple And the green line or teal line is showing zero dte dte trades and up about two o'clock These were almost identical So zero dte trades Up until about two o'clock We're making up a very very large portion Of the total options trades today And then that diverged a little bit right around two where the Purple signal started to uh drop more quickly than the zero dte Zero dte trades Whoops All right, so the hero signal continues lower. Let's go back and take a look at book map I'm going to zoom out a bit. So we know this 475 level Acted as support earlier today We also know in a positive gamma environment. We're not necessarily expecting A large trend. We're expecting more Mean reverting price action So the green volume dots are showing that some aggressive buyers are coming in At that 475 level Let's go back to hero Or let's move on. So there's a flow alert potential Um Mean reverting flow alert All right, let's take a look at nasdaq now All right nasdaq the main thing that I want to point out is this very clear Uh divergence short setup note from the open traders. We're taking negative delta positions and then price Was consolidating moved higher And just after 10 started to move lower Let's go take a look at nasdaq back to book map nq futures Can assume in on the morning here so where there was no clear qqq ndx or nq level for the reversal Just a trend break somewhat of shift in order flow buyers exhausted aggressive sellers start to come in And then finally is price moves lower. This is cumulative volume delta. So not really providing Much more than a confirmation also sell stop orders helping to fuel the move lower and then large traders start to come in Buying weakness that's pretty typical shown by the rising light blue line with that they're buying with iceberg waters They used to hide their size All right, so a short setup just about the same time as the short in um NES so here's the Most recent short setup Another trend break aggressive sellers All right, let's go back to hero Note the hero signal starts to turn lower About five minutes before price dropped All right. Hector says that iceberg order on nq is strong or low Uh, do you think there's an exhaustion and buying entering? Um, well, first of all, let's take a look and see what options traders are doing So that's my first clue. So it looks like the hero signal may be Shifting let's go back to book map. So this is a level around Previous support for the day no clear qqq ndx or nq level but did act as support lower bound Lower end of the range for today. We know what again a positive gamma environment All right, there was a question about iceberg orders So looking back Earlier today with this rising line 575 especially this week that's pretty large now what book map is doing is aggregating 12 different executions into one Signal there because I've zoomed out quite a bit But that in total is pretty large note more iceberg buys And before Let's go back And note before large traders were selling this move higher So before they were buying weakness now here, uh, just after 1 p.m They were selling strength So again that That's an aggregated Signal 509 contracts 11 different executions. And again, that is pretty large for nasdaq Especially this week There's 150 executions in three different executions 150 contracts three executions All right. Hector says thinking that 500 order. I guess this is the One that I was talking about right around before 10 30 Some accumulation. So, uh, you know again that what large traders often do they like to Buy weakness and sell strength and they use iceberg orders to do that So that is a a good signal For a potential reversal So I'd be I would be looking at a shift in hedging flow and book map And then a shift in order flow And the iceberg orders are definitely one of the stronger confluences or confirmations Of a potential reversal All right, let's go back and take a look at hero So the hero signal now it was trying to move lower now Continues to move lower making lower highs. Let's take a look at one other signal. This is the mag 7 signal This is um Another combination signal. Let me just zoom out here that combines options trades and market maker hedging activity For a combined signal for the stocks known as the magnificent 7 Apple amazon google meta microsoft nvidia tesla and these stocks or These stocks are a large component large part Of the nasdaq 100 for sure and also the sp 500 So let's zoom back in All right jack jack says and one one and a half minutes the delta and hero shifted from positive on the daily Let's see. Are you talking about? Which instrument sp 500? so I have For the sp 500 I have The total hero signal at minus 419 million um Now I am looking at just the Just the regular trading hours So that may change a little bit. All right, so I'm not looking at All of this all right, so given that Let's turn off the extended hours All right, so during regular trading hours, this is a pretty small number Uh minus 390 79 All right, so hero may be leveling off Or let's take a look at some stocks Oh, well, let's go back to mag 7 Uh, so the magnificent 7 the total hero signal uh is positive for the day so far for these seven stocks Traders are taking positive delta positions All right, let's take a look at apple apple uh initially Uh There was a short set up this morning Traders taking negative delta positions And then right around 1130 Apple reversed higher as traders started aggressively taking uh positive delta positions Note the floor alert Both on the short side and the long side Let's just separate up puts and calls see what traders are doing So generally the put and call line have uh Gone been going in the same direction again very powerful directional indicator and this move higher at 1130 It looks like it was really initiated mostly by call buyers that shown by the rising orange line So when traders buy calls market makers sell the calls and they have to buy stock to hedge their delta exposure So let's go take a look at apple And book map So there's the short in the morning 192 50 is the hedge wall Price breaks below that in the morning below vwap Makes a double bottom just uh above 191 And then traders start aggressively buying calls Right at around 1130 and aggressive buyers start to come into shown by the green volume dots Let's take a look at amazon Note for amazon 155 Is the call wall key gamma strike Not a lot of movement here in amazon Let's go take a look at hero to amazon Short set up this morning Flo alert indicating significant options activity Price reverses lower as traders start taking negative delta positions Let's see what they were doing And they were mainly selling calls That's shown by the falling orange line Let's go back to Go back to book map So price makes it lower high as traders are selling calls And again not much moving in amazon today The next google Let's take a look at hero and note for google 140 is the key gamma strike That has been providing great support today Also a target for this move lower Note the heat map and book map is showing a history of the limit orders in the order book The darker the shade the thicker the line Indicates more orders in the order book And these this liquidity In this case the Limit buy orders act as a magnet for price Let's go take a look at hero go to google Traders are selling calls. That's what that is what is driving price today Again shown by the falling orange line When traders sell calls market makers buy the calls and they have to sell stock to hedge their delta exposure Sorry about that Let's move on to microsoft Another short setup 375 t gamma strike acting as resistance Go to book map Pretty choppy day in microsoft 375 Let me bump up these volume dots And many stocks like like microsoft the Opening print is so large that volume Will dominate Until the closing print and note the point of control Will remain at that level until the closing print and here's that 375 Key gamma strike Acting as resistance So that if you took a short at 375 That was good for two points in microsoft And let's go take a look at hero And again traders were selling calls today Shown by the falling orange line And when they took their foot off the gas they stopped selling calls started buying calls Price started to move higher All right next stock and video No gamma levels in play for today. Let's see what traders are doing Again selling calls Timely flow alert Call sellers take their foot off the gas start buying calls and price starts to move higher So this is the theme of the day is calls Mostly call sellers Let's go take a look at book map go to Nvidia And by the way, these are the stocks That I keep In book map all the time and these are great stocks for trading mostly the magnificent seven Very liquid stocks and options markets Price action heavily driven by options markets. So I have the magnificent seven stocks Again, these are great trading stocks You know, I can just focus on these stocks not not look around a lot of people like to trade Stocks that are in play for the day, but I find there's plenty of action in And these stocks as well as amd and netflix All right, so there is Nvidia reversal lower right at the cash open as traders were taking Neg negative delta position selling calls And now price is recovering higher as traders Call sellers took their foot off the gas and they started buying calls Go back to hero And you can see that more clearly by separating out puts and calls Just right around 1015 They start buying calls again and price reverses higher All right, the next stock the last stock I want to take a look at and behan. Hello. Welcome. Glad you're here. Happy holidays To you as well. All right, tesla. Here's the exception for the day Um Bucking the overall trend and moving pretty aggressively higher Note the call wall key gamma strike at 260 tesla has breached that level And tesla is definitely responding to call buyers traders aggressively buying calls in the morning Showing by the rising orange line timely flow alert This is a very typical pattern a bullish pattern Traders aggressively buying calls in the morning price rises And as the call buyers take their foot off the gas the Hero line levels off price consolidates and sometimes some moves lower Call buyers definitely dominating Note the notional value there Positive 365 million versus puts. They're also selling puts today that number is positive 44 million All right, let's go take a look at book map back to tesla There's that sharp move higher at the open as traders were aggressively buying calls Market makers sell calls and they have to buy stock to hitch their delta exposure Let's just zoom in on this So if you're trading stock it you really have to be fast To take something like this have an order be ready to trade tesla Have an order ready You know one great way to trade this is just a buy call at the open All right, so there's tesla. All right, let's I've got just a couple minutes left. Let's just check the SAB 500 and NASDAQ again All right, so it looks like the SAB 500 Did find support at the 475 level So in reality today The range is very very narrow in the SAB 500 So maybe 4817 to 4834 something like that But again finding support at the 475 level That is the absolute gamma strike for spy Let's check NASDAQ and by the way, this is This line here showing an iceberg order That was not fully executed here So this horizontal blue line shows that this order remained in the order book and then was finally executed Right around this this level here And certainly a catalyst for a move higher One quick check of heroine that won't wrap it up for the day Let's go back to the SAB 500 Hero has shifted higher again the strong correlation between options trades hedging flow and price action continues Not near not as clear in NASDAQ Helps to look at the magnificent seven that hero signal has also shifted higher Remains to be seen whether that is a move higher or just a higher Lower high All right, my time is up I want to thank everyone for watching Thank you very very much for your questions and comments. Thank you for your participation And I will see you tomorrow again as we wrap up this final trading Training week of the year. All right. Thanks again everyone. I have a great afternoon and I will see you tomorrow Bye