 Hello everyone. Welcome to options with dog streaming live daily. I'm book map discord and the book map YouTube channel at 1 30 p.m. Eastern time before I get started I need to go through the disclosures general disclosure all book map limited materials information and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations risk disclosure trading futures equities and options involves substantial risk of loss it 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 Doug 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 and book map and real-time market maker hedging flow in spot gamma hero to confirm my thesis and for setups for entries and exits and when I talk about setups today I will be talking about a setup in an underlying asset like stocks futures and those setups can be taken with futures contracts shares of stock or options contracts questions and comments are welcome and I will be watching the chat in chat channel and discord options dash Doug chat channel in discord as well as the chat in YouTube karma effects hello glad you're here great to see you same for you JC good morning good afternoon for me thanks for the comment on Microsoft all right let's get started my agenda for today I want to talk about economic data that was released today and then there was also some earnings this morning that earnings bank started the bank started reporting earnings this morning and then I'll go through my positional analysis for today and then I'll review a few setups and then we'll take a look at the live market and when we get to the live market if anyone has any stocks they want me to take a look at please let me know all right so news for today the only data release that had an impact on the market that I'm aware of is the consumer sentiment that came out at 10 a.m. and we'll take a look at the market in just a moment to see what the reaction was to that data right so let's go ahead and do that now and that consumer sentiment came out greater than expected and greater than the previous reading all right so that data came out at 10 a.m. and initially the reaction was bearish down then price reversed higher than reverse lower so we'll talk about setups a little bit later so this is ES futures in bookbap and before I take a closer look at this chart so I'm going to start my positional analysis now for the day so the first thing that I'm going to do and I talked on Wednesday I talked in more depth about exactly what I'm doing and why I'm doing it so the first thing I want to do is look at the key levels for today and I'm going to start with a larger time frame this is SPX this is a 30 day one hour chart and first of all let me point out price action this is last Monday here this reversal off the SPX 4400 level and that was at the time 4400 was the absolute gamma strike for SPX that strike that level has moved up since then so a very strong rally this week in the SPX SB 500 I estimated this at about 138 point rally this week in SPX so let me point out some levels on this chart first of all this is the lower and upper weekly expected move and note SPX is trading well above the upper weekly expected move this is based on the options mark and I get this once a week from the options chain for SPX so at the close Friday I can just take a look at the options that expire next Friday and I want to take a look at the PM expiration next next Friday is the big monthly expiration so I want to look at the PM expiration to get that number and then I do the same thing every day after the close I look at the expiration and the options chain for the next day and get the lower and upper daily expected move so for today SPX is trading in that within that range within the lower and upper daily expected move and for today that expected move was about a little bit less than 25 points plus or minus 25 points let me point out some spot gamma levels on this chart first the put wall these are proprietary spot gamma levels provided to spot gamma subscribers noting key levels of gamma weighted open interest these are where market makers can be expected to react with hedging flow so this is the put wall the strike with the largest net negative gamma that can be expected to act of support and that is not in play the next level up is the volatility trigger at 44 45 that level did move up from 44 15 yesterday 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 market makers have to trade with price to hedge their delta exposure on the other hand like SPX is trading now market makers have to trade against price to hedge their delta exposure and that tends to subdue volatility and that leads to more days more range trading days with lower volatility and then finally the 4500 level and that is the call wall and the absolute gamma strike the absolute gamma strike was is the strike with the largest absolute gamma positive and negative and then the call wall is a strike with the largest net positive gamma and that can be expected to act as resistance and know that SPX is trading above that level and in that position spot gamma considers the SPX to be overbought and spot gamma stats show that price should trade down below that level or at least not proceed further unless that call wall increases alright so SPX trading within that expected daily range above the upper weekly expected move and also above the 4500 call wall alright let's take a look at one other SPX chart and let's go to a one-day one-minute chart to show the level so turn play for today so here's the call wall at 4500 SPX still trading above that level trading in a pretty narrow range today and making a series of lower highs after this reversal right around 1015 1020 just above this combo l2 level and there's was also a resistance level we'll we'll see in bookmap in just a moment at the 4525 level that was noted as resistance in the spot gamma am founders note so let's take a look at that now and what I want to point out is the I'm going to zoom in well first of all let me point out what I'm looking at on this chart so this is yes futures in bookmap and I have my own cloud notes that I'm using here and I'm marking spot gamma levels so those are shown with white lines a white background and red text so there's that 4525 that is that is SPX 4525 resistance noted in the spot gamma am founders note the yellow is spy 451 that is not a spot gamma level but that is a spy round number level and then there's that 4524 c2 level that's a combo to level combining SPX and spy gamma into one level and then down below here that is the spy 450 absolute gamma strike call wall and note for spy there were several shifts higher in levels first of all the volatility trigger also shifted higher just like SPX the put wall shifted higher pretty substantially from 425 to 446 and most importantly the call wall shifted higher from 445 to 450 and note that SPX ES was trading above that level and is now it looks like maybe finding that result level as resistance and I want to put it point out a couple of things on this bookmap chart that are that are interesting try that again I'm going to look at the look at the morning session so this note this liquidity here at ES 4460 and that was the high of the day there was a stop run up to that level you can see the buy stop orders there with these green dots also shown by the rising orange line meanwhile larger traders were selling into the strength with iceberg orders that that's they use iceberg orders to hide their size that's shown by this falling light blue line and let's see if we can point out so there's an iceberg order there at 383 contracts stop run up to that liquidity level prices absorbed at that level and then reverses high lower and we'll take a look at the hero in just a minute so I'm still looking at the chart and then I just saw this I thought this was very interesting so I'm looking at in addition to these levels I'm looking at the liquidity in and book map and then note the liquidity levels that came that came in just actually before the cash open and these kind of acted as a break on price so starting really with the here first at 4550 47 46 45 44 43 42 and then finally this larger liquidity at at 41 was never hit so as price was moving down these large blocks of liquidity at these round numbers were in these are buy orders into in the order book and as price moved down they were being filled and there was a stop run down to that level shown by the falling yellow line also the red dots there and just in reverse of what we just looked at on the move up larger traders were buying with iceberg orders shown by the rising blue line and there was the reversal higher alright so we're still on positional analysis I just wanted to point that out and that pattern repeats later on today so I'm gonna leave this chart actually it won't stay like that so so anyway let's take a look at Nasdaq now and I've talked about shifts and levels so bullish shifts and levels for the S&P 500 SPX and spy volatility triggers move tire spy put wall moved higher and also the absolute gamma strike moved higher I might have said call wall before the call wall remained at 450 and the absolute gamma strike moved higher so that is the S&P 500 let's take a look at Nasdaq now and really no gamma levels in play for today just the round number level so I've got my cloud notes here for Nasdaq I'm showing the zeros in the 50s for NQ and there's the upper daily expected move so Nasdaq traded up above that level and I've got QQQ levels as well and there must be something obscuring the 380 level which is the QQQ call wall and absolute gamma strike both moved higher up to 380 so let's take a look at that now and we'll just take a look at QQQ chart showing the levels in play for today so for QQQ here's the call wall and I was mistaken that that gamma level is in play for today as well as this combo L5 I'm not showing that on on my bookmap chart so that level acted as resistance and then there's the 380 level and it looks like there's a combo level on on my chart at the exact same level kind of obscuring that label for the 380 call wall absolute gamma strike alright so for for Nasdaq the for NDX the volatility trigger and put wall actually moved lower and also volatility trigger moved lower for QQQ but much more importantly both the call wall and absolute gamma strike moved higher call wall moved higher from 375 to 380 and then the absolute gamma strike moved higher from 370 to 380 so bullish especially bullish for these shifts higher and the call wall and absolute gamma strike for QQQ so that I think this label right here is what is obscuring that label for the 380 call wall must be at the exact same level alright so those are levels in play for for the Nasdaq and again this call wall absolute gamma strike also the NDX 15603 C2 level definitely in play for today alright so I've talked I've pointed out the levels also the shifts in levels now let's take a look at gamma notional in the Vana model to wrap up the positional analysis so first of all gamma notional this is market makers position on the gamma curve I like to look at this every day I mark this down on my trading journal every day so this is for SPX spy NDX and QQQ note all of these numbers are positive market makers position on the gamma curve for SPX spy NDX and QQQ all positive and for SPX that number actually increased became more positive and for spy and NDX shifted a little bit lower and then for QQQ shifted much higher and then finally and I'll I'll take a look at questions in just a moment let me wrap this up and then finally let's take a look at the Vana model and I'm looking at this to get an indication of how market makers may react with changes in price and applied volatility and I'll just look at SPX so what this chart is showing is market makers delta notional or delta exposure and the vertical axis and how that changes with price shown on the horizontal axis there are two curves on this chart the first light gray curve is showing how market makers delta notional changes with changes in price only and the purple curve is showing how market makers delta notional changes with changes in price and applied volatility and that change in delta with a change in applied volatility is the Vana effect hence the name of this chart the Vana model and one thing to point out I'm sure spot gamma assumes that market makers delta position their hedging position is neutral at the beginning of the day and that may be one reason there was a comment earlier this week that this chart looks pretty similar every day that's because the assumption is that market makers are fully hedged and delta neutral at the beginning of the day which I think is a pretty good assumption so what this chart is showing is if price increases market makers will need to sell futures to hedge their delta exposure and that's typical of a positive gamma environment right now so that's why in a positive gamma environment you expect subdued volatility so let's see where spx is trading right now let me take a quick look at a watch list I've got spx at 45 14 so let's see if we can find that on this chart alright so that's somewhere just right at the bottom of this curve so at this position it appears that market makers are fully hedged delta neutral and they will have to start hedging basically selling futures with an increase in price or a decrease in price so this left side here is typical of a negative gamma environment and the right side is typical of a positive gamma environment all right let me take a look at questions all right so redshift trucking says I find your videos helpful thank you I'm glad they help he's confused by the purple line in the sub chart a book map so let's take a look at that so this is cumulative volume delta I assume that is what you're you're talking about that's just what it says cumulative volume delta by minus cell and so far today and you can see that by the all the pink dots on this chart so these volume dots are showing volume delta as well by minus cell and pink dot indicates they're more aggressive sellers than buyers these are market orders so more aggressive sellers in that cluster and book map clusters these a set of trades depends on the clustering depends on how far you zoom in or out so the pink dot is showing sell is greater than buy market orders and then a green dot is showing buy market orders greater than sell orders hence the delta and this cumulative volume delta is just a running total of that so that is cumulative volume delta for the entire session and my session starts at the open yesterday afternoon all right so redshift trucking also asks is the hero composite book map version or is it the indicator called cumulative delta all right so at one time there was a hero indicator add on for book map and that has been deprecated that is no longer available and right now the hero indicator that we'll look at in a few minutes is only available in a web based version right so hero and cumulative volume delta to entirely separate things and if it was similar in shape to spot gamma hero that is that's probably mostly coincidence right I hope that helps and D&T matter says so the absolute gamma and call wall are different on spy versus spx spx versus spy yes they can vary a little bit they typically will get more in sync after a few days but they can vary all right so we've looked at levels in play for the S&P 500 for Nasdaq we've talked about shifts in levels mostly higher mostly bullish especially the shifts higher in the call wall an absolute gamma strike for QQQ and then also the absolute gamma strike for for spy and just to D&T matters question now there is a difference between a price difference between spx and spy so 450 for example is not exactly equivalent to spx 4500 but they're close so right now the call wall for the S&P 500 is for S&P acts at 4500 and for spy at 450 and the absolute gamma strike for S&P acts as 4500 and the absolute gamma strike for spy as 450 so they're pretty close all right so we've talked about the levels the shifts and levels gamma notional positive for all indices and then the Vana model for S&P acts showing a pretty Delta neutral position for market makers at the beginning of the day and based on this my thesis for the day looking for lower volatility trading range for the day and directional bias was bullish and that played out at least for the Nasdaq in the morning led to a good long setup all right let's take a look at the setups so we'll go back to the S&P 500 and let's start with the the hero indicator so what this is is this is from so redshift trucking this is the hero indicator this is the only version of the hero indicator available web base version this is for the S&P 500 it is showing price for spx and then options trades and market maker the resulting market maker hedging flow for a combined signal for SPX spy XSP and ES futures all under one combined signal let's zoom in on this so really options traders were in the S&P 500 taking negative Delta positions and there's this very strong correlation between options trades hedging flow and price activity today price action so really the first good setup was a short here right around 1020 and then a little bit of a long so a short setup long setup and then short all confirmed by options trades so let's go take a look at the S&P 500 and I've talked about order flow a little bit let's just scroll back a little bit so I've already talked about this the reversal here the stop run up to the liquidity at 4560 larger traders selling into that with iceberg orders the shift in order flow aggressive buyers up to that liquidity level and then aggressive sellers start come in start to come in on that's shown by the shape shift in volume dots there from green to pink and then as price reverses large traders as they often do sell strength and buy weakness so larger traders started coming in with iceberg orders buying as sell stop orders and aggressive sellers were feeling in the move lower as well as option traders so that was the first short setup so reversal at the 4560 level and good entry points right around this cluster of levels here again 4520 noted as resistance and then trades come the liquidity in the order book the resting limit buy orders start to absorb price and again larger traders in here buying with icebergers on the way down as sell stops feel the move lower and then aggressive buyers come in as options traders start to take positive delta positions and then price moves up to this level of liquidity larger traders or sell orders start to come into the order book right around 4554 55 and we saw that options traders started to take negative delta positions and price reverse lower you can see all the pink dots coming in as price moves up this time also the liquidity in the order book and then again Kimlet of volume delta and stop orders fuel the move lower and note somewhat of a similar reversal pattern here liquidity in the order book some of it has been in for a while some comes in a little bit more recently and then aggressive buyers start to come in move price higher now back up to the 450 level as well as the 4515 resistance level alright so pretty easy reads today in the with the heat map the order book and order flow and book map as well as confirmation with confirmation with options trades and hedging flow right I'm running a little bit slow here let's go back and let's take a look at NASDAQ now so NASDAQ there was a sharp move higher just after the open not really confirmed by hedging flow but definitely confirmed with order flow here in book map icebergs buying on the way out showing by the rising light blue line also buy stop orders fueling the move higher several great pullback entries this is after the data let's go take a look at hero see what options traders were doing so we'll take a look at NASDAQ and this is a combined signal for NDX and QQQ and what this is showing is traders were taking bearish negative delta positions as price was moving higher so a good signal for to look for a reversal but up until then it was definitely a nice long so let's go take a look so this setup this divergence know that hero starts falling and price it takes a few minutes and price reverses lower I'd really like to look at these divergent setups so a couple of great divergent setups in NASDAQ so after the quick run up right around 1030 reversal time price moves lower and then again let's see around 1140 so let's take a look at NASDAQ for those so here's the reversal lower at right around 1030 note the shift in order flow green dots on the way up then aggressive sellers start to come in as traders were taking negative delta positions so after the quick move up in the morning price reverses lower as options traders were taking negative delta positions then there's the second reversal lower again as options traders were taking negative delta positions and this time the right at right around the upper daily expected move and note that after that first move higher order flow and hedging flow were both were both bearish that shown by the falling cumulative volume delta as well as cell stop orders fueling the move lower and down to the 380 call wall absolute gamma strike we can see that on the QQQ chart so there is the the 380 call wall absolute gamma strike alright let's take a quick look at some stocks and then we'll get to the live market alright so D&T matter let's see if I can find something to show you here right so this is spy chart and thinkorswim and I've got a number of little think scripts running here and let me show you this is the SPX divided by spy so that number is not exactly 10 so remember SPX does not have a dividend it's cash settled and on the other hand spy does have a dividend so there's and further other reasons I'd have to go research but SPX to spy is not exactly 10.000 it's a little bit different so 40 there's a you know a slight difference there right now again this is showing SPX divided by spy at 10.030305 now alright so I wanted to take a look at some setups and let's one other thing that I look at let me bring this over this is also in thinkorswim this I don't know if this may be a little bit difficult to see this is a eight charts on one screen and I'm looking at the magnificent 7 plus AMD these are the stocks that I have in book map and you can see on all these charts how bullish they were first thing in the morning and this is what confirmed a long setup in NASDAQ that first half hour so that's something that I look at as well so that that helped to confirm a long setup and in NASDAQ first thing in the morning all right let's take a look at some book map charts now here's AMD this is the first setup that I want to highlight let's take a look at hero go to AMD and this is the hero signal for AMD and note that traders were aggressively buying calls from the open pretty much just maybe five minutes after the open that shown by the rising orange line when traders buy calls market makers sell the calls and they have to buy stock to hedge their delta exposure and that can be a very powerful force that helps to move a stock higher so the orange line rising showing positive delta traders are buying calls not really doing much with puts so notice the put line is fairly flat the number is negative minus right now minus 91 so they are buying puts buying calls and notice how when this call line levels off price levels off and then eventually starts to move lower so that fuel of traders buying calls market makers selling the calls and buying stock to hedge their delta exposure has is no longer there and let's just see what turn this off so a good bit of this flow is zero DTE so today's Friday so traders are buying calls in options that expire today remember stocks have weekly options that expire on Friday all right we'll go back and show all expressions all right so that's AMD and again driving price higher in the morning and drying up maybe an hour after the open let's take a look at Amazon and traders were also buying calls in the morning that lasted a little bit longer let's go take a look at book map not quite as strong a move as AMD but also a move higher for Amazon as traders were buying calls the next one is Nvidia let's go take a look at hero again look at Nvidia we'll zoom in on the warning session this is not quite as clear and easy to see as not as easy to see as the AMD setup but traders that will zoom in a little bit more just so we're showing the the early move so notice the the general trend higher in the call line traders buying calls and this put line is pretty flat so there are buying calls the buying puts this is a hundred and ninety eight million positive versus 26 million negative so call buyers I think it's just pretty clear from the orange line being so in sync with the price action shown them white that called buyers were definitely helping to drive price higher all right let's take a look at one more and then gold panda I'll get to your question right so let's go go to book map look at Nvidia strong move higher and then a pretty substantial reversal lower I think there might have been another upgrade for Nvidia this morning and call buyers came in hand over fist in the morning and then that reverse pretty quickly so let's go take a look at hero again so Nvidia will look at the entire session today so notice how is that call buyers start selling then price of versus lower and then finally Tesla called dry call buyers driving price action all day and it looks like there was a call wall breach and now price is trading above that call wall so let's take a look at Tesla and then gold panda I'll address your question so here's Tesla call buyers driving price action today all right let's take a look at let me take a look at something else we'll take a let's take a look at AMD and and Tesla here and talk about breaches of the call wall so right now let's go back AMD is trading at just under 117 so let's take a look at this chart right here put in call impact zoom in so here's the call wall at 115 we can see that in in their history here call wall at 115 let's go back to the put in call impact chart I'm going to zoom in so this is a little bit more clear so what happens with a call wall breach is price moves higher and note that when traders are buying calls market makers have to hedge their delta exposure so they sell the calls they have to buy stock to hedge their delta exposure and one thing that can be an accelerant to that process is when these calls like at the call wall this 115 strike you can see that as the strike with the largest amount of call gamma when those calls go in the money market makers position on that so they increase in delta they go in the money increase in delta market makers delta position becomes more negative and they have to continue to they have to continue to buy stock to hedge their delta exposure because those calls are going in the money and their delta is becoming more negative so they have to buy continue to buy stock to hedge their delta exposure and this note this shift the crossover in the here's the orange line that is call notional gamma versus put notional gamma and note now above the 115 116 level this call gamma is now in control so that's what happened that's what can happen especially in a stock with a call wall breach all right so JC I'm not sure what what stock you're talking about there so let's take a look at one other thing here so really the the next expiry gamma is next week so that is next Friday and right now twenty seven point two two percent of gamma expires next Friday not this Friday and the call wall has shifted lower over the last few days from 120 to 115 okay I got it I have it now JC so he's indicating that that the flow in the addition and contracts in the last few days is what pulled the call back from 120 to 115 that's shown here in the history all right so let's go take a look at book map again let's go back to AMD so right now AMD is moving lower remember 115 those calls are still in the money but coming less in the money so yoga mat ask call wall breach on stocks versus index what is the expect expectation I would say look at the spot gamma support center for more information there I think the expectation for an index is with a call wall breach negative negative price action for the next few days that's what their stats show I don't know if they have stats for individual stocks my experience has been more it depends on the stock the time of day but this call wall breach and and acting as an excel accelerant is much more of a factor in stocks versus an index so let's take a look at another example with Tesla here so let's go to Tesla and Tesla moved all the way up to 285 so we'll go take a look in equity hub at Tesla all right so we know the call wall is at 280 there was call wall breach let's take a look at the put and call impact chart sure why that is not showing all right there's Tesla and zoom in so this is more clear so here's the call wall at 280 is trust and Tesla traded up to around 285 today so again this is 280 is the strike with the largest amount of call gamma and the call call to put domination shifts right with the orange line drops below the blue line so we know that as Tesla moves above that level price action is call dominated as price moves above that call wall those strikes that the call gamma at that those strikes go further in the money and that call gamma becomes more negative or smart market makers position on the gamma curve or market makers position gamma position becomes more negative a delta position and they have to continue to buy stock to hedge their delta exposure so those calls increase in delta as they go further in the money and market makers position becomes more negative more negative delta and they have to continue to buy stock to hedge their delta exposure as long as traders continue to buy calls all right let's take a look RJ wants to take a look at an NVIDIA we can take a look at that again all right so I hope that helps I hope I was clear with the the call wall expiration so just as a summary I think call walls as a resistance level are more meaningful in index especially the SMB 500 versus stocks and as we've seen this week in the in QQQ in the Aztec as well all right so there's NVIDIA again let's see what options traders are doing go back to hero go to NVIDIA let's just take a look at the total signal and it's after the move up that ended just around 10 20 traders have started taking negative delta positions and price continues to move lower I don't know why it jumps like that all right so the hero signal for today is definitely negative 327 million traders taking negative delta positions all right let's take one last look at the broad market and then we'll wrap it up let's start with the SMB 500 so options traders not buying the initial move up taking negative delta positions negative 2 billion today in the total hero signal for all all the products SMB 500 products all explorations let's go take a look at book map go back to the SMB 500 and let's see and YouTube I think I missed your question call wall breach bearish on Tesla not necessarily I think I I think I covered that as long as traders are buying calls that call wall breach can act as an accelerant so the key is to look at hero and see if traders continue to buy calls to help inform your decision about what happens with the call wall breach for stocks all right so overall kind of a choppy trend lower but the SMB 500 continues to move lower as traders are taking options traders are taking negative delta positions and clues for reversal levels here with a good liquidity in the heat map as well as the levels here this cluster of levels liquidity there and then the 4515 and also the spy 450 call wall now acting as resistance not exactly but the close right so that's the SMB 500 continues to move lower as traders are taking negative delta positions aggressive traders are selling shown by this falling cumulative volume delta and also the move fueled lower with sell stop orders to look a NASDAQ and then we'll call it a let's see what options traders are doing so options traders taking negative delta positions net on the day and after the initial burst hire NASDAQ is moving lower there were a couple of great divergence short setups shown by hero falling and then price responds a few minutes later we'll take a look at book map and then call it a day here's NASDAQ continues to move lower back around the cash open price right around here it's almost a complete reversal in NASDAQ today right that's all I have we saw some great setups in the index products as well as stocks and strong clues in hedging flow and order flow for both for the index products NASDAQ and SMB 500 and very strong signals in hedging flow for stocks like AMD Amazon NVIDIA and Tesla and hopefully I clarified the questions about a call wall a call wall call wall breach all right everyone thanks for watching thanks for your questions or comments have a great weekend and I will see you on Monday thanks again bye