 Good morning traders. Welcome to the bookmap protrader webinar series Today we have rent kachuba or otherwise known as spot gamma He's going to go over understanding option options gamma levels within the order flow You might be aware of his subscription service and he's offering Well, I guess he'll get into some of the details, but levels within bookmap and You can have them come directly into The the column within bookmap. So you have them right there within the heat map Let's go through the risk disclaimer trading futures equities and digital currencies Involved substantial risk of loss and is not suitable for all investors past performance is not necessarily indicative of future results a Little bit about Brent if you guys are haven't haven't seen him before we had one other webinar with him He's been an equities trader and derivatives trader for almost 20 years So he's got a ton of institutional background here working with B of a and credit credit Swiss As equities broker and in algorithmic sales and trading Then he was with institutional sales for Wolverine representing their electronic derivatives trading platform and currently Brent is He's trading some proprietary strategies and he's running spot gamma calm Which publishes very publishes various metrics on options data various metrics. They're in detail It's really really a very nice service. I've really never seen anything quite like it to be honest Let me just go over here if you're interested in reaching out to Brent Here is his contact information. Don't worry. I'll put all of this into the go-to webinar chat Just copy and paste it right in there so that you guys can click directly on the links He's got his website here in his subscription service. You've got his email here his Twitter handle and then also Bookmap partners they get special offers that you guys can Purchase book map using this link here And there's some some special deals on book map. So For three months a year or for lifetime some special offers if you're interested in that I'll put all of these into the chat for you And then let me just turn it right over to Brent Yeah, thanks. Thanks Bruce. I Appreciate you have me on and and I appreciate the opportunity to talk to all of you guys and Bear with me here as I make sure I have the appropriate screen lined up here. I See the windows screen, okay, that is definitely the one you do not want to see right now I wanted to show everyone quickly the Hopefully you can see my book map screen. I see book map. Yeah. All right, cool. I want to jump to this real quick This is not about the topic of the presentation, but I like to sort of put myself on the spot a little bit here Futures are obviously trading pretty much lower and we have two interesting levels so far today, which is the 3300 There's a lot of open interest and options up there And that's a key hedging level and the market kind of respected that and then the low is this combo strike Which I can get into a little bit later of 32 67 and that's an spx 32 67 So you have to adjust that to the December futures contract So it'll be interesting to see if this target happens kind of by the end of the webinar here And if not, there'll be a little egg on my face, but let's see what happens. So at any rate Again, thank you everybody. So today, we're gonna talk a little bit more about single stock gamma and the ability To use some of these interesting levels that we produce in single stocks and and how that what we do for futures applies into Again single single names like Apple and the like so Bruce. Can you see my book map presentation here? Hopefully you can Sorry, no it back to the windows. I see the windows icon there. There we go. Now. I see Alright, sorry everybody. I'm gonna get better at the stuff eventually So one of the things we want to talk about is where general services So how we came to work with book map is we produce these futures trading levels that are based off of spx options Many of you are probably familiar with that. We've done a lot of videos. There's a ton of information We've done a few Presentations with book map in the past that discussed this at length So I won't dig in too much into that too much of this presentation But basically what you need to know is that we look at all the open interest in the S&P 500 and the SPY And we produce the support and resistance levels and volatility estimates In in those translate into the ES futures market So at the open there We just showed our two levels for today and we produce what are expected move on the day in terms of standard deviation You know how big of a range we expect to see and how we think the market will move and I don't say this to sort of Show an ego or anything like that, but the levels have been just really spot-on. You know these We produce them and they they show up in in your book map feed every day And I and I think they've been really helpful for a lot of people and there's a five-day trial If you want to try this stuff out, you'll get access to the the full suite of Of levels and metrics you can pull in the cloud notes and just watch that as we go. So with that, I'm going to dig into the Into the idea of gamma just real quick and then how we can apply that to single stocks. So what we do is We look at market gamma and a lot of people hear this phrase gamma and it's a Greek in their eyes probably glaze over a little bit but all all you need to know is that gamma is an estimate of volatility in the market and It's a measure of volatility in the market because it is an estimate of how much dealers will hedge in options Market makers will hedge the underlying Equity or the underlying in this case futures if you were looking at spx options, right? So the two key questions that you need to ask yourself and this pertains very much to equities because it's you know There's 3,800 different equities and each one has some have big options volumes and some have very small options volume So these are important questions to ask so number one is how much volume the option players produce And obviously if there's more options trading in a name, there's more hedging in a name Right so there's going to be more of an impact from options market makers and dealing dealers if there are bigger positions and bigger volumes, right? And then the second question you need to ask yourself is how are dealers positioned, right? Are they long calls or are they short calls? You know our dealers net long puts are then that short puts and all you need to know about that is Based on how we think they're positioned how dealers are positioned i.e. long or short options We can then produce volatility estimates and all volatility estimates are is how much do we think a given name is going to move on the day? All right And then the third one is where are those positions concentrated in the in the case of the of the chart that we showed at the open There's a lot of open interest at the 3300 strike in spx. That was a key resistance level today There's also a lot of open interest at this 3267 level which we'll see if that level gets tagged As well as a support area here So again, those are the two things really need to know gamma is simply an estimate of how much volatility There's going to be in a name and we'll dig into that a little bit more at the end of the day You don't even need to know what an option is and need to know You know what gamma is or how to calculate, right? But what you do need to know is what is that metric telling you it's like Bruce and I were talking before You don't need to know how an engine in a car works in order to drive it, right? You just need to know sort of what the output of this model is so please don't get turned off You know by this concept of market gamma and and needing to know Greeks and how things are hedged and the like We try to sort of distill it down for everybody so all right, so back to this idea of Volatility and gamma in the spx what we do is we measure this thing You probably heard about it before positive gamma market versus a negative gamma market This is a very common chart We show a lot of people and what you just again need to know tied to this volatility idea is that When we have a positive gamma market or we calculate that dealers are positioned in a positive gamma stance or or way There is less volatility in the s&p 500 than when there's a negative gamma position So right now we have a negative gamma position in the s&p Complex and that infers that there's going to be a lot of volatility So you can see the price distribution really widens out when there's a negative gamma Distribution so if I was a swing trader if I was a futures trader I would be looking to play 1% moves 2% moves You know big swings in the market whereas if it was a positive gamma market And there was a lot of positive gamma as calculated by our metrics I would be looking to scalp right played tighter swings and names and I'm going to adjust my trading accordingly So those are that's sort of what the impact is of gamma And what you sort of need to know are sort of when you translate that what you should be looking for right? One of our most popular questions is great. You put you produce these metrics, but how am I using it? Well, this volatility metric or volatility Calculation is showing you what the expected volatility is and then you can set your trading accordingly So one of the other interesting things about this and this is a recent note It doesn't directly tie to sort of what we're getting at today But it's just something I want to share with everybody is this is the open to close level overnight And then here is the previous closed open So this is the overnight trading versus the day session And what you can see is this is plotted based on each of these points are just for a given night How much gamma we calculated on the day and what you can see is so interesting is that you get a same profile in movement So the x-axis here is the move on the day right from a 24-hour basis So today's so the point today let's say 6 a.m. To tomorrow at 6 a.m What was the return for a given gamma point and you can see that overnight it respects the gamma or the moves Fall into the same bucket or bin as what happens during the day session And I had always thought you know There's this common chart of the market performs better if you sort of buy the clothes and sell the open and I had thought that That was because the overnight Market just had a more positive return and and there is a positive skew in here But really what's so interesting about is there's way more big negative moves during the cash session Then there are during the overnight session So it's also kind of interesting thing because if you think if I only own stocks, you know Or if I'm long futures when there's a positive gamut environment, what is my Mac max exposure, right? Well, it looks like around minus 2% overnight is sort of the biggest movie you've calculated And this goes back to January of 2018 So it can help you sort of manage your risk mentally and sort of put things into a framework of expected moves and sort of you know handling some of the Again the risk or sort of what your perceived moves Will be depending on whether we have again this positive or negative gamma environment So, you know, this is this is something again We we have some posts on our website about if you want to dig into a little bit more It's just something I want to bring up as it's a fairly recent study that we produced The other thing I wanted to mention about spx options particularly after this prior Expiration in 918 was a big expiration and what I mean by that is the third Friday of every month is when we have the large SPX monthly contracts expire and most institutional players tend to Trade in that monthly expiration. So there was a lot of options that rolled off this past Friday and In spx that can kind of create some volatility and you know, I think we've sort of seen that really spill over Monday But you can see that, you know, the February high pre-covid crash here Was the day before options expiration and you could see that, you know The market just really careened and what was so interesting is that the March low in S&P was the Monday after The March big March expiration. So, you know, those two points I think that's kind of beyond coincidence that you have that sort of velocity or that that change in market stance Around that options expiration event and you can sort of look back and you know, obviously, there's not always a coincidence Right, there's some confirmation bias and how these things move But when you get big positions expiring Particularly in single stock you can see this impact and in something I think you need to be aware of as a trader and sort of how you're going to address and and play different moves One other thing to mention here as well tied to what I just talked about is this measures spx But what you can basically see is the third weeks before op-ex. So this is where options expiration takes place So what this chart is showing you is that as we move towards that third Friday expiration? Volatility contracts and I've seen this in single stocks as well. So what I mean by that is where the large Open interest is in the name the market will sort of consolidate and the volatility will reduce into options expiration Again, this is what just happened on Friday and then the week after expiration It's like the the range is released right the trading range and sort of the grip that the dealers had is released and the Expansion takes place right now We have a lot of volatility in the week after expiration and then we sort of build back into expiration and volatility contracts And it's the cycle of movement that you can see and I think if you bring up a lot of stock charts You can sort of flag where expiration was and I'll show some of those examples here shortly So one of the things that I want to shift into and it's been such a big story is this idea of soft bank and And gamma and I did a podcast with some guys called market huddle this past Saturday where I really dig into this and one of the things that we think was such a big driver of markets moving higher in August is this concept of a Positive gamma right and the idea that as calls Are bought by retail or by soft bank or other players it forces dealers to buy The underlying so calls are bought and that makes dealers have to hedge themselves by buying stock And so you can see that as more calls are bought you would get this reflexive cycle of More dealers having to buy stock that pushes the stock up which leads more people to want to buy calls and and that's a self Reinforcing kind of cycle higher and you can see that there's a lot of data and metrics to support this theory and this idea But what's also interesting about that is that when that mechanism breaks meaning when people stop buying calls All the dealers have to do is unwind those long hedges they had so that they're going to do is sell off all those stock Hedges and when you think about how quickly this unwind happened, you know last week It took you know two weeks to gain 10% in the S&P and like two days or in a lot of these underlying names Excuse me, and you know what I think it was like two days basically to unwind all that long position So you get these very violent moves when you build up gamut in single stocks And so what we do when we look at single stocks is we assume that that options dealers on net are short calls And short puts right which is another way of saying that most people who are trading single stocks are buying calls and buying puts Now I understand that there's a whole lot of people out there who are selling options to get premium on different names and they're doing over rights and the thing like that but on net we believe that and again, it does very name-to-name, but When we look at modeling 3,800 different securities, which is what we do We assume dealers are short calls and short puts which means that as the stocks go up Dealers have to buy stock and as the stocks go down They have to sell and or short to hedge themselves And so you can see theoretically how when there's a whole bunch of options positioned how when they the dealers have to buy or sell They can really start moving a stock around right so that short call short put is called a negative gamma position And all that is telling you is the dealers have to hedge in the direction of the stock So momentum trades are popular or should be effective in names with big options complexes or trading And if you just sort of want a visualization of what that is, you know, we just need to look at Tesla Which we're going to talk about here in a second This calls reloaded slide here just talks about this cycle of of expiration So you can see that calls build up we hit the big expiration in this case This was July it resets the the complex so to speak and then we build again into august and then the calls reset So again in september we just had another reset where you know call positions or put positions are going to get rebuilt and we'll see How that how that plays out going forward here So understand I guess the rhythm of the cycle right that the once a month cycle so to speak So again What we're trying to do do here when we look at these single stock positions We're trying to identify places where volatility is going to expand right we want to get long in those areas or where volatility is going to contract or pin and so Those pinning areas are going to be targets by you know Longer short resistance areas and or where do I want to get long exposure to certain names because I think of all the moves About to happen and I'm going to go through some names also in real time We can look at our we call it our equity hub tool and look at some charts here book map Which is a great job of of exhibiting Where liquidity shows up obviously in these single stocks and see if it lines up with some of our options levels So what we do when we look at Single stocks is we produce this options map and this is this comes from our website or show you how it works shortly But what you need to sort of know here is that we map call gamma Which is essentially just looking at how calls are positioned in a name and then the orange line is put gamma So put game is telling you how much puts are in the name. So and so an apple it is dominated by call options Whether that's guys shorting calls or looking to get long exposure There's typically very little Put buying or put interest in apple relative to the amount of calls And so what's important to look at here is how much open interest exists in apple and it's a lot And the volume is very high So it's a very interesting name to watch from a from an options perspective And what you also get to sort of comfortable with is we we tell you how much gamma is in a name And this is a lot of gamma right there's some names that have say a million dollars of gamma And what you kind of need to do is just sort of get used to looking at how much gamma there is You know, how big is the size of the options complex versus underlying volume? I'm not going to dig into that here But just know that when you start to use the tool or you start to look at it You want to know, okay, you know, how much hedging impact is there really versus the underlying volume And so along with okay, here's call volume and put volume What are the key levels that I need to pay attention to and these dotted lines show you various Levels that are important in the name and this will be things like where the largest call or put concentrations are we have a couple of Specific models that we run to produce key points For instance this inflection point here where these two call gamma and put gamma areas separate is often a sport and resistance zone And then the second thing to know is I talked earlier about volatility expansion and momentum What this line is telling you is that as apple moves up It is picking up dealer hedging dealers need to start buying and sort of chase the name so to speak In accordance with the sort of steepness or the slope of this blue line, and I hope that makes sense I don't answer a lot of questions around this But basically what if I was going to get long this name I would wait for it to catch into this blue area because I think that it's going to pick up dealer hedging And get into this sort of call feedback buying cycle, right? And that can force the name higher as as the name goes up dealers want to buy And you could see that that feedback mechanism could push this name higher And conversely if it starts to sell off I know that I would want to play a short down to into where this volatility Tails off right into this inflection point where the name starts to lose some of that momentum Excuse me there So here's a here's an example that I find very interesting It was from a little bit earlier and there used to be this site robin track and I think it's stale data now Which is unfortunate, but one of the things obviously as traders we look for is you know a catalyst of some sort, right? so just because You know the the options setup it shows that there could be a lot of momentum in the name It doesn't necessarily mean that that things will take off right call buying does sort of Infer or foist the hedging Obligations of dealers to keep buying the stock But you need continuous call buying or some other metric to help obviously push the stock higher and so home had this really interesting setup because The number of robinhood accounts was just screaming higher Um And so what was fascinating about it is this was From the day, um, you know these these two charts coincided on the same day And you can see that the setup in the name showed that there could be a lot of momentum up in the stock So you've seen these names that we're going up 20% You know and you go when is this thing going to stop? How do you know when do we want to short this thing right? It's it just keeps going higher. So 20% today, you know, we're down 20% today like nickel You know, when do I play a bottom? What may be an inflection point? And I think these options metrics can really show you where that inflection point may be So in this case, you know, there's a lot of gamma setup in In the home ticker home and it seemed to top out around this 1516 area And what's so fascinating is that they had earnings and and the stock really respected this area in this level Right and if you think mentally about what's happening in the position is, you know, we show there's all this gamma dealer have to buy Dealers have to buy the stock to hedge themselves as this thing rips up And what you see is that, you know, this is after hours, but we need to hedge our exposure Right, there was this earnings play and a lot of momentum in the name And it does sort of extend past that sort of 15 zone right into the 16 zone And then it immediately sort of settles back down under this You know under this curve, right? That's that hedge and there's there's numerous examples of this happening And and as you sort of start to watch the options set up, you know It can really offer some a way to contextualize a lot of the moves that are taking place Particularly in times of expiration when there is no move and you'll see a stock down three four percent on expiration day And you're not sure why there is no news Well, it can be because again expiration and dealers have to online positions or or adjust their their hedging setup Sorry, I'm going the wrong way here here we go So one of the things I wanted to show which is interesting about tesla is The change of the volatility right and and so What we had here was On 710 before tesla earnings. There was a lot of people positioned and this was in july a lot of people positioned To play this name right and this gap between the orange line, which is put gamma and and the blue line Which is call gamma again infers that there's a lot more position people positioned long in this name And that can have consequences for the stock as it moves higher or lower And what's so interesting about this is that you can see here when I flip to post earnings the shape So to speak of this gamma totally changed, right? So here we had this big gap between call gamma and put gamma and then what happened was right after earnings Implied volatility as many of you know collapses right after earnings because the news is out and all those options deflate And so what happens is these call positions collapse and suddenly puts pick up a lot of A lot of momentum because the name started to trade down all that implied volatility Collapses and so dealers who were long a bunch of stock to hedge Out that those long call positions suddenly need can now unwind Those long positions right because volatility's collapsed those calls lost a lot of money And now dealers can unhedge and unwind and that can create a downward movement in the stock and pressure down on the stock Even if the earnings are good Simply because the mechanics of what's happening With all those options positions can really sort of inflict Movement on on the position. So so again This this gap here between the call game and put game is really key And it tells you sort of our calls controlling my position or our puts controlling my position so We highlighted these levels here on the slide and just to show you what essentially happened here This is 7 10 right so this is going into the earnings which is this chart here And so you can see that Leading into this big ramp which is this level in the stock which at the time was a major move and and then you know Tesla made even bigger moves following this but you can see there was this ramp And I think a lot of this ramp is because of this positioning and people buying calls and sort of front earning earnings So to speak uh, you know getting in front of that earnings move and you have this big tick up right in the name And why does that happen? Well, again, I think it's because of dealers and then again into earnings You know was the same thing and this is the this is this chart here You know the post earnings crush where you see the the stock just trade down It doesn't look like a big move, but this is a hundred and fifty two hundred dollar move down on the stock Right, even though earnings were good Volatility crushes after hours. It had a nice rally, but Marking on open volatility gets crushed Dealers have to unwind positions and you end up with this sort of gamma map or shape to the to the name After earning so hopefully that point is being made and I'm able to translate that that well And I'll again show some more examples here and happy to answer a lot of questions about that Um One of the names that is sort of a little bit more of a current event Which is interesting is apple and so, you know This is the trend in apple for all of august and I highlight a few levels here There's a lot of people who wanted to play getting in long before earnings or excuse me before the split With the with the feeling that that was somehow free money or something along those lines And so this is august 31st Which again you had to own the stock to get the split and after the split You know the name really just kind of tanked and so what's interesting about that? This is the 125 level which if you just keep that in the back of your mind So this is the august 28th chart. There was a lot of options expire on august 28th. We noted that This 500 strike, which is 125 Split adjusted was had just a ton of options related there And there was a ton of people positioned at that level And you can see that there was again this sort of pin or move Into just into august 28th and then on expiration day We kind of had the again the expansion that day and then we sort of reverted back to that level and fell through it So we map out, you know the 500 strike, which is again is the 125 split adjusted here And note how many people were positioned in calls. I mean everybody was in long calls on this In this name and then as those unwind, you know again after expiration, you know, there's an unwind associated with it And I think that can be reflected here here in the in the stock selling off If we look at September options expiration now, it's a similar story, right? This is now split adjusted We show 112 is a really big area of expiration And that again, you know at the time 9 18, which is friday had a lot of contracts expiring on On that friday and you can see the name. This is 112 in that stock name You can see the stock really just sort of mean reverting around that level Into expiration and you know, these these levels will pick pick up and show quite often and it's not, you know, you have so much Open interest in apple. It's very hard to sort of pin 112, right? There's a lot of people playing a lot of different positions here and as options are being added or removed, you know changes It changed hedging flows, but this 112 zone, you know, I think it's not a coincidence that the name sort of More or less pegs that area into into expiration You know peloton into earnings again, this is another similar thing and I won't Sort of go through that similar idea or similar Position again in the chart. I want to talk about sort of a live example that I think is kind of interesting Which which some of you guys may appreciate one of the names that really showed up on our screen today was oracle And obviously it's in the news which is so it has catalysts. There's this tick tock you know metric and Not metric but tick tock acquisition and sort of changes the face of who oracle is and so that has some positive You know vibes with her right for lack of a better word and what's so interesting is that's manifested in the options position There's a lot of people with upside calls in this name and it's short term day trading type players Which means that the volatility name could pick up because of that As day traders buy that really forces, you know active hedging apologize for that thing and so You can get a big move say into this friday and then dealers will and then excuse me Traders will reload next friday's expiration. You can kind of get this feedback mechanism this buying reflexive feedback mechanism in the name And so what I wanted to do was just pull up a quick chart here of tesla and opal or excuse me of oracle And if you look at my book map We'll zoom out here a little bit Strength this down so oracle For today, you know 60 is a big level So if you look at this this area this dotted line here Shows you that the biggest open interest is in The 60 strike and that's right where these put gamma and call gamma areas kind of converge And we sense we our model senses. This is a key hedging area. So it should be a support area And if we can spark some momentum It looks like this thing could really run up into the 65 level And so if you take back into the actual chart Book map shows you here that 60 is a level that's the stock has been holding right It's been playing in here now We have a little bit of weakness in the name But we would look for sort of mean reversion back to the 60 area And if we can get some momentum going, you know a little positive piece of news We do think that the the volatility potential in other words How much momentum we could get could really you know, send this thing quite a bit higher And so you could see that setup is here, right? It doesn't mean that the stock obeys that setup and and obviously if the markets overall really sell off You know that will pressure this this name a little bit lower But the momentum or the setup here is is really quite interesting So back to this equity hub tool what it allows you to do To speak about the tool specifically and I wanted to run through some some real-time examples here is We can go into The spot gamma equity hub here And type in a different Type in some names, right? And so I loaded some of these things so they'd be live So like Roku is kind of an interesting name to watch recently And I like to kind of put myself on the spot a little bit here And see what Roku tells us so here's the map we like to call it for Roku You can see how much open interest is in the name where the put and calls are all positioned How much gamma and delta there is and again, you don't need to know what the the options math is to Uh to get a lot of out of this tool I think what you need to know is here are the support and resistance levels This is what we're talking about at the end of the day and then you know, how much is positioned How much gamma is positioned in the name oracle has quite a bit more positioned Quite a bit larger option position at the moment, which is something that makes a little more interesting But you can see again, there's a lot of people positioned in calls in Roku And we note that the 200 strike is where the most calls are positioned, right? So that's the 200 strike here And the other the interesting thing to note is that the top gamma exploration and top delta exploration Which is where there's huge concentrations from an exploration perspective is not until october So these are longer term positions. I would expect less sort of quick turnover in the name Um, and that is quite a bit different from oracle, which had the largest concentration on 9 25 Which is likely people may be playing that, you know tiktok dealer positive news So if we flip back to the chart you could see that We're under that 200 level And if you look at sort of the convex convexity or the line here We're kind of you know in this 180 190 area and that should build or this doesn't fur that the momentum should carry this thing up into the 200 area Um, you know if the momentum can continue now if we're going to check to the downside You would note that there's a lot of exploration around the 180 area in the name And so, you know, that's not a level that's coming into play here at the moment But you can see that there is a lot of liquidity down here around 190 and then I think we traded down to 180 yesterday. I think unfortunately though, yeah 180 at the open excuse me this morning Was where we sort of came in and then we had the momentum kind of catch it and pick it back up One of the other names I had tagged was uh, nicola, which is interesting. I don't know how this thing is trading today It obviously had a very bad day yesterday Uh, and looks like we tagged down to the 25 area. So if we look at the map, so to speak here, let's check this out Um, you can see again not a huge option complex What's so interesting about this name is that you could see puts just dominate in this name, right? Everybody's betting that this thing is just kind of kind of tank and it's going to get beat up pretty badly Not a lot of people looking for big upside So what's interesting about these puts being positioned at is there any if What's so interesting excuse me about the puts position in this name is that if you do get some positive news You could see a pretty good blast of short covering because of you know, the amount of long puts that are Proceeded to be long puts in this name. So you could really see sort of a sharp rebound Up in the 40 area if that if that catalyst appears But we note that there's a lot of options concentrated in the 29 and 30 area So our model picks up 29 as the It's kind of the big strike and if we kind of flip over it looks like that name has been in play You know for for much of the morning or for the afternoon. So so hopefully You all can sort of see or get a feeling for what how the options can help you map out You know regardless of what your trading strategies and equities and or futures You can kind of see how this option data and information can be used We are looking at building a cloud notes link for All the stocks that we cover That's something that we are developing now need to test out We hope to make available basically that if you subscribe to the equity hub You'll be able to just sort of plug in our data feed and have all these levels mapped out For you on book map. So I know that was a lot of information. I try to talk fast because I know that there is a relatively volatile day you could check check the charts here It didn't quite tag that 67 area looks like but The day is still young. So with that bruce, I don't know if you want to take any questions or we have any questions But I'm happy to help Yeah, sure. Uh, so jerry's asking, um, you mentioned soft bank. Um, and yeah, I wanted to take a look at that And then Barbara wanted to take a look at amazon as well Sure. So, um, it turns out soft bank as a stock. I don't have any data on that Is he asking about sort of how the mechanism of soft bank worked or just sort of the some of the idea behind what their trading was Yeah, how important are the options in the in the play and why? Yeah, so, um, so with soft bank It was it was more a matter of what soft bank the fund was doing and and they had bought a lot of call spreads in various names like microsoft and apple Microsoft in adobe, excuse me And so when they bought those call spreads what they do is they sort of Forced a hedging obligation onto dealers so that when stocks go higher like microsoft and adobe go higher Dealers have to buy stock to keep up, right? And so it came out in the news that that soft bank had bought massive positions, you know 75,000 call call spreads in microsoft in a similar position in adobe and a few others and so that can Lead to this upside volatility if you remember that there was this weird situation where like the vixx was going up Or implied volatility in different names was going up as the stock went up and that Was I think in a big reason to essentially what the way to look at is the market was crashing up That's how I look at at sort of august and so soft bank was being You know assigned a lot of the responsibility or sort of catalyst for you know So many of these tech names just going kind of bananas into august and you know being up four five percent a day and And then sort of also, you know, there's a violent unwind of that right that ball bottle unwind of the position or the hedges You know when the mechanism sort of the hedging mechanism turns on itself And so that was what was so interesting about soft bank because those positions were so big And because retail was positioned so long those Those two or that sort of net option position was such a catalyst for the the rise into august And I think that sort of collapsed and kind of just really just mean reversion here into september So hopefully that helps to answer your question Please let me know if it didn't and then I will No, I think I I think that yeah, he says thank you so and I did you know, I again, I don't want me to Pump something else, but I did the the market huddle podcast just this past saturday Which we talk, you know a lot about that topic specifically um One of the things I you know, I'm very embarrassed of roose is that I uh, I don't have the historical data on here Which I just realized when I was looking at this morning. So I'll go back as far as I can here for the amazon trade Uh, but let's look up amazon and equity hub and just take a look and see What we have for today And these positions are updated every night Um, and they're based on the open interest from last night So if we look at amazon 3000 is a big level And that is because we have what we call the hedge wall. So what the hedge wall is is our model looks at All the open interest in the name and it picks up where there's a big change or Or inflection point and how dealers may hedge for those of you who are familiar with our our s&p product We call this the volatility trigger We don't call it the volatility trigger in amazon because or in single stocks because our assumption is that dealers are always short Or negative gamma position. So there's no real volatility trigger the hedge wall has a very similar concept Um, except for we think it's a major support or resistance area. And so that shows up as 3000 as well as very big Uh, just overall huge positions That's what this key gamma and delta strike are telling you that there's just a lot of near-term options And longer-term options position there and that most of those positions don't expire until october So that tells me that these are longer term probably bigger players positioned in the name because again that doesn't the When the Largest expiration is out in a major third friday expiration like October 16 that tells you generally that it's probably more institutional Traders who are going to be holding that position Uh closer into expiration if this said, you know 925 i'd say oh, that's a lot of retail And i'd be looking for a lot more volatility in this name as a result Uh, but again 3000 is kind of this key level which should be defended Obviously, it's a big round number which people like as well and uh, and it I think the low overnight I think yesterday we did breach the 3000 level and it kind of looks like we maybe tagged that this morning and bounced off of that Um, I do not see though Sort of the similar catalyst of you know, this big gap Between call game and put gamma, you know holding in here And so, you know, I think there's a little bit of fuel to the name to the upside But it's not the same sort of position that it was in august where we saw, you know, just Large outright call positions. Um, you can see there's a I would say this is a differing view and how people are playing this name. And so Um, you know, you can't get a little bit of a catalyst. I think maybe up into 3200 but um, and obviously that's a pretty good move from where we are now Um, but I don't think we get the same Volts will move higher like we saw in august at least that same with that same velocity So, uh, I hope that helps Yeah, absolutely. Now, I said it's really, um fascinating to look at these charts And and start to understand like the positions That the And the the gamma speed et cetera What the what the dealers how they're going to have to react to it Yeah, you know, and so I think too what what what we when we talk about this position, um, you know in target points You know, it's a it's a very fluid situation What I mean by that is that when I think when strikes get hit It causes people to shift and unwind positions and and so in s and p We can see sort of pins because if people if the dealers are long gamma what they're doing is they're pinning a name down, right as Positive gamma means that dealers are hedging against the market So as the as the s and p goes higher they'll sell futures and bring it back down and as the s and p drops They buy futures and bring it back up, right? That's that pin area that we'll see oftentimes and so You can't see that set up sometimes in individual stocks But what I think is when you have these big positions like tesla is a great example because the options positions are so big That the thing never rests, right? It's always volatility and you can have a heck of a lot of volatility in tesla Or you can have just some volatility in tesla But it rarely ever sort of hangs around or pins in a certain area And so, you know, if you look at tesla for today, you know, 450 is this kind of big area There's not a lot of people betting on downside right now in this name Like there's a small drift off but again people are positioned for long call and I think some of this is the battery day thing and and and the like and and so What you can see here is again the fuel is there to kind of push this thing higher These numbers were a multiple higher and I apologize for these all saying 100 We just need to change the abbreviation on this Uh, but you can see that 925 is where there's a lot of gamma position Which means that there's a lot of options that are very sensitive to this movement that expire on friday And so, you know, typically in tesla, this is the thing, right? And everyone knows this is a big retail name people love, you know to to to take risk here And this is 30 of the options gamma expires on friday. That's a big number So wherever the biggest options positions are and again 450 is where they are going into friday This level likely plays into that Into the name into uh into friday because Um, you know because there's so much exploration there. So here we're holding kind of the 420 area Which is you know down around in this zone But there's just not the same impetus. I don't pick up the same Downward velocity position that we had right after Right after the august crash Uh, if that makes sense Yeah, yeah, so um, I mean basically when that when the two lines are closer together like uh, like you showed in amazon You're not you're just kind of it's it's it's kind of uh Equal uh, there's it's balanced. It's yeah, it's balanced Yeah, and that that's sort of you know, and that's how I look at this This is like a zone of balance really and that's why I just don't think you know It's not a reason to sell the stock here Like I don't see a lot of downward movement and again, you know, if the stock drops 300 bucks You're not going to be happy if you own that um, you know clearly but You know, there's just balance around this name and there's so much exploration here Or concentration at 3000 that I think inevitably the name just sort of mean reverts around that area and waits for a catalyst um And if there was a lot of exploration Happening this friday ago, you could say okay, that's a catalyst to push this thing into a different zone But the other thing to note is that this map changes every day And we're working on a historical data tool and sort of like a flip book method So you can sort of see how these things change and how they contextualize But tomorrow we may see that this blue line suddenly jumps up and that could tell you Oh, a lot of other people right sentiment has shifted now in this name because you know the call gamma has really jumped higher And so again a lot of this data and information is to help you contextualize The position and sort of you know, give you areas target areas So whatever your strategy may be you can overlay this information on top of that strategy and use this data to help You know again map out where where some of your trades may may want to take place Yeah, yeah, excellent. So and then and then um, did you have some examples maybe I guess with some of the stocks in there, maybe you don't have them in the In the column there the notes column I don't have unfortunately the notes column. I need I need to sort of populate that so I need to I need to back off or I need to Back off. I need to add in some of the the single stock metrics in here Um So, you know, if you want to take a quick look at at netflix And just see what's happening in there So this is kind of a similar situation to the amazon where you know It sort of seems like it's pretty balanced here like put in calls If it breaks above the 500 area, you could really see a pretty good run as this is fairly steep position This is a decent amount of gamma The other thing that's interesting to note too is how much volume took place So you can see a lot of times in the name like the one I remember is peloton and and I think if I want to look up Oracle volume for today You'll see big increases in volume for the day before or if you look at today's data You know in your brokerage platform You can see that a lot of calls are taking place, you know that in combined with the way that this is already positioned Can really give you a lot of information And really help you analyze, you know, good setups Um, you know to position yourself for, you know the momentum trade so to speak Uh, yeah oracles only had 34 000 contracts trade today, which is not too big Uh, so in netflix again, sorry, you know 500 is this kind of key transition level where it's like If I was going to get long maybe over 500 and makes it pretty interesting and under here It's just sort of a you know a balanced sort of grind or chop area Um, which sort of seems to rhyme with maybe what the stock is doing today Uh, so key level at 4 4 80 or not. Yeah So Brent, do you have an example of like what you're looking in the order flow to to maybe meet? Some of those levels or you know when when you might take a position Yeah, uh, so when I'm when I'm you know when you're looking in the order flow, obviously What I'm generally looking is for the large volume to line up And you know with some of these different levels and what matters, right? So, you know, there's a lot of volume taking place for example and an apple which is a good one And you can see there's positions building around this 110 area But what you'll see is that the liquidity much like an es will show up around You know where these big levels take place Um, and so, you know, just sort of like when we're monitoring an es we look for inflection points, you know, be it stop runs or be it, you know, large volume nodes so to speak Like around 109 here and I think a lot of times those reversals can be the result of options being Placed or unwound in the name and so, you know, apple has this 110 area which matters a lot to it And what you'll be able to do is cross-reference The a lot of these key options areas with significant turning points in the name on an iterative basis And so apple, you know, obviously 110 Is a area which just keeps showing up in this name here and you can see there's big volume nodes around that level But, you know, when I look at this move this big print in the reversal, you know This to me is something that just really seems like an options trade be it somebody put a trade on or unwound it But, you know, this volume In this type of position can often speak to options positions being added or removed and so I'm always looking for Either sides of icebergs Or other stop runs into and around these kind of big strikes and then when they coincide particularly with big zones or big You know key strikes or key areas that I know that's a pretty good signal that something, you know major happened in the in the option space Can you zoom vertical there you go zoom vertically? I was just wondering like because you you mentioned 112 earlier. I think in in apple. Yeah Yeah, and this is where I shot myself in the foot a little bit because I don't have the uh, I don't have the historical data to wind back and I apologize for that but you can see Sorry to zoom back out there so you can see here 112 50 I mean, you know, there's there's just a lot of volume that went down. Obviously that was a big print on the clothes Um, and you know 112 50 as of our map yesterday So the map changed today, but the map for yesterday had 112 50 if I scroll back to it here So here's the map for yesterday You know the 112 50 area was the big strike or the big region to watch And and you can see that that that volume really printed there Sorry flip back to the right screen here In 112 50, you know, there was a lot of volume and then down around 112 again is another seems to be another large liquidity area Um And what's also so interesting about this 112 and this sort of move that opens on Monday morning is that Excuse me. Uh, what happens this morning Is that a lot of times as these positions are expiring or unwinding Apologies for that you have this issue of dealers having to unwind hedges after expiration So to tie back into that and granted this was yesterday and not sort of the monday But if you look at the move monday morning a lot of these names There has to be an unwind of hedges that were in place on the friday expiration and a lot of times that volume I think can really show up in the morning after as those positions are are moved around And shifted when I speak those positions. I mean those hedging positions Um, and so, you know, I think that at the moment You know the fact that those 112 positions have disappeared means that this name can really kind of start to drift down But again, it's it's a pretty neutral position in here um, and so If it breaks 115 you could see it really start to pick up and I would expect that, you know We would see some kind of stop run or position change if we sort of break up above this volume band You know and start to move forward it could really catch some momentum But as we're sort of under this grind area, you know, you see there's just a lot of mean reverting There's not any real clear, you know zone of volume or change Um, and the name is kind of just sort of floating around if that if that makes sense Yeah, yeah, absolutely. Um, so, um, let me see. There's a few kind of detailed questions here Silvio is like talking about or asking about the different nomenclature and different phrases you're using like put wall gamma delta strike price Or a key strike volume trigger Is there a latest version? Of nomenclature and second question is the the volatility trigger for single stock Single equities like we have in the spx Yeah, the so the volatility trigger we call the hedge wall and again, we differentiate Because we always we believe that single stocks are always in a negative gamma position So in spx the volatility trigger tells you when gamma shifts from positive to negative and that infers that volatility will really pick up And we enter a negative gamma market In stocks, we assume that there's always this negative gamma position So the hedge wall is the same model that detects the volatility trigger in an spx But in stocks, we think it's a very key hedging area. So 115 and apple We would look for that to be significant resistance And if it can break that, you know, here you can see that over 115 is where the calls really pick up. So We would look for resistance here, but if it does break then we would expect a you know, really rather large move up in the name The key delta strike and the key gamma strike we have these on our FAQ and our on our site and there's a glossary of terms here For subscribers, but basically what you need to know is the gamma strike tells you where the largest Concentration of options gamma is which at which strike that is and that tells you the level That's most sensitive to options movement would be 115 So we would consider probably some type of a pin again resistance area there In the case of apple the key delta strike tells you where the largest in the money options are So there are a lot of people who own in the money calls at the 75 strike So that's all the way down here. So that's essentially like synthetic stock position Essentially because they're deep in the money calls and they don't expire until january. So there are some big players who are probably holding essentially Deep in the money call options that don't expire until january. So it'll be very interesting to watch in january how those positions are changed or rolled Because that's going to be a lot of volume that Dealers may have to unwind down there, but this is telling you there's you know, likely institutional guys You know have big deep in the money calls on this level and that's essentially like a synthetic stock area And then our model also picks up these hedging bands These hedging bands are there to tell you where sort of gamut tails off in a name is sort of where we think momentum stops So we were playing in a momentum trader looking for a very volatile move We would want to play that inside of these hedging bands Oftentimes, you know, the hedging bands do sort of pick up or show up at a at a number that's kind of you know off the radar Like 250 in this case, but if you switch to some of the other names They'll be a little more reflective of sort of what's around at the money Again, when we're modeling 3,800 different names, not every metric will always apply to every name But they all do have a the model is always picking up different things And you know, depending on the name and the situation these levels will adjust, you know, pretty rapidly and then the other thing to note in here is You know top call positions. So where are the most call positions that happens to be at the 125 strike? There's a lot of puts at 100. That's the biggest area of put Strike so if apple did start to start to break down to 100 You know, there's a lot of puts that are going to start picking up juice, so to speak and that can be kind of a volatility Trigger, so if you wanted to sort of look at it that way And then these other numbers next game expiration number Percentage tells you the percentage of gamma that's expiring on this next friday's expiration 15 percent is not particularly big if this said 50 percent then you go Okay, this is a this expiration is a big catalyst in this name And I would expect it to opt to to I'll expect the name to change the way that it trades On friday into monday, and I'd want to play that play that accordingly Okay, let's see. Nizar is asking if you can focus a bit on the zero gamma strike and the volume trigger levels Sure So that that'll be an es an es question and not a single stock question. Is that right? Correct Okay, so sure so, um, we we passed this gamma flip line Called the zero gamma level a couple days ago. It was around 33 50 33 25 sort of in that area And basically what that is telling you is that When we have positive gamma as the market starts to drop dealers are buying futures But the lower the market goes the less futures dealers are buying And then we hit this line called zero gamma and what zero gamma is marking is that is the spot where Again, our model says that dealers are going to go from buying futures at the market drops to selling futures as the market drops And so the idea is that once you pass that level if the market continues to drop Deals are going to start now shorting futures And so what that infers is that you're going to have a big initial volatility expansion, right? That simply means that the market could solve pretty sharp after that level So after you have that initial break and then initial sell-off following a break of the volatility trigger or the excuse me The zero gamma area or volatility trigger the terms are a little bit ubiquitous What what that is telling you is negative gamma is telling you there's going to be a lot of Volatility in the market and that is because again as the market sells off dealers have to sell What happens now if momentum shifts and the market starts to rise Rise that means dealers got to buy to keep up, right? They're going to cover those shorts And so all of a sudden now you're getting, you know, two three percent moves in a day You know like yesterday we had a huge sell-off in the morning And then we made all that back at the end of the day and you have just these giant swings, right? And that is what negative gamma is really implying or inferring Um, so again, you want to sort of maybe change how you're trading or adjust your style based on positive or negative gamma In terms of you know, how many handles are you looking to capture on a move? Uh, or how you know, how far can a move happen or how far can a move go? Based on if it's a negative gamma position or a positive gamma position in the market So hopefully that that helps to answer that question Yeah, I mean why I'm just curious on the on the zero Gamma level like why are they turning around and starting to sell? It has to do essentially with whether the market is controlled by calls or puts so We assume that dealers are Long calls in spx, which means that they're they have a positive gamma position in calls And then we assume that they're short puts in spx. So that's another way of saying that in general We assume that there's a lot of volatility Uh, vrp. So, you know volatility risk premium in other words people are selling calls big institutions sell calls as a way to As a way to make money and that means that dealers are net Long calls in spx. So that's different from single stock, right single stock We assume the opposite and then obviously we think most people are buying puts as a hedge in spx So that means dealers are short those puts So there's a line in the sand where dealers go from having to hedge out a long call position to having to Short futures to hedge out puts does that make sense? So if you consider yeah, right, so So, you know bruce if you if i'm a market maker dealer and you say brand i'm gonna buy a thousand, you know 3300 strike puts for me Particularly if you do that order electronically and I can't prepare myself I suddenly I'm short a whole bunch of puts and if the market is dropping I need to short futures is the way to hedge myself And so the bigger your position is the more puts you by the more I have to short Futures and I have to hedge, right? And so that can really drive the price down particularly if the market is illiquid And then conversely let's say that yesterday morning. Oh you say brent. This is great You know, I made so much money on my long puts I'm gonna I want to I want to close that position and you sell your puts Well, if I'm the dealer on the other side of that, I just bought back those puts from you, right? So now I'm flat. I don't have a put position anymore. I was short now I'm flat Now suddenly I have all these short futures that I got to buy back And so there I go I got to start buying those futures back and I get that Mean reversion in this case, you know that kind of vol will move back higher And so what that zero gamma point is kind of telling you is that In a way to think of it as the demarcation line between when dealers are sort of hedging out some rather benign call positions to Uh, oh, like we're short. You know, we need to start shorting futures to hedge ourselves Understood Um, let's see here. Uh, Nizar has another question on Any what what is the uh translation you use between the es and the spy? Uh, so we just take the uh, I believe it's 12 handles today We just look at on the generally in the cash open We just look at where esz is trading versus spx and that's the level we use So it should be a little bit more like I guess nine today I think we have a 12 so I can we can adjust that but We've tried some different ways to automate that spread and it and it really hasn't been great So uh, all we're doing is we look at where futures are trading, you know at the open versus cash and then And then make that adjustment Okay, uh, let's see here a few more questions Sure When is the data refreshed? So the single stock data is refreshed every morning. Uh We try to do it by 3 a.m. Um, but it's done definitely by 6 a.m And that will all be automated a little bit earlier. Um, and then as far as s and p For our advanced subscribers, which is what you need to get the book map feed that data is run at 3 a.m. Eastern And that's sort of the biggest change in the data and then we do refresh again at the close But generally that closing data is not as big of a change or adjustment as the a.m data run Okay, uh, let's see here. Um Yep, samuel is asking about looking at the the s and p and maybe going through some of the levels. Um Sure I'm happy to do that. So today, um, you know, we have a negative gamma scenario or negative gamma position Uh, which means that there's not, you know, the space between levels is pretty big Which is why we only see really two on the screen today Uh, obviously 32 67 we picked up as one and then 33 is 100 is the other level um, if you go to our Uh portal page We have a little toolbar that shows you And again, if you, um We we publish this stuff all to cloud notes So you have all the levels and if I zoom way out, you'd see some of the other ones But hopefully you can see this little pop-up window So for today, this is where all of our different levels line up Um, and these are the futures adjusted Prices again, we're using 12 points. So Some of these levels have moved way off because we had a big expiration And so what that big expiration does is it drops the total amount of open interest at various strikes And that kind of often leads to sort of a lot of the levels being kind of pushed way out And the in the significant ones sort of have a larger meaning But they're a little bit more spaced out So what I mean by that is if it was a positive gamma market and we were looking at, you know, all this Position here, you know, this is 50 handles We would probably have two or three levels that really mattered in here because we have the negative gamma position Our levels have, you know, widened out a little bit so to speak And on here, you know, we have this volatility trigger, which I can touch on quickly the volatility trigger is our our model Sense is a different way of picking up where dealers are actually going to start significantly shorting futures Uh, and then, you know, conversely if we get over that volatility trigger level, where will they actually start buying futures? And excuse me So the difference between the volatility trigger and zero gamma Is that zero gamma is just telling you where dealers don't actually have to hedge anymore, right? Because if you think about zero gamma, gamma is a measurement of how much dealers are going to have to hedge So if gamma is zero, that's telling you that they have no hedge at that point Below there, they may have to start selling futures, but you know, essentially zero gamma is they have no position to hedge The volatility trigger is telling you where the significant inflection point is of where they will actually start selling some kind of consequential position in futures or buying some kind of major position in futures So we're generally when we're trading We're going off of the volatility trigger in terms of where do we want to start shorting or buying futures, you know that The break of that level, you know, whether we go, uh, you know through it on the downside or upside That's the level where we are really watching. What's interesting is the zero gamma Point has become a support or resistance level and that's why we include it We think it's something like a 200 day moving average where it shouldn't really mean anything to the market, right? Because zero gamma means no hedging Uh, but people watch it and so I think it's become like a technical indicator or a line along those Um along those points and we had a write up on our site about this for those that want to Uh, you know dig into a little bit more and then the other thing we know are these large gamma strikes So large gamma strikes are simply telling you where big options positions are are located. So 3350 3300 3250, there's a whole bunch of open interest at all those areas and so You know those positions tend to be concentrated at 33, you know at numbers that end in five zero or zero zero Um, and that just is telling you again where these big open interest positions are Uh, have accumulated and where the market may gravitate towards right because my view is that hedging flows tend to concentrate around those big Strikes and so you want to know what the biggest strikes are because those can be the the largest draw And then lastly is the idea of combos and and these have been sort of I think my most my biggest surprise in terms of Uh, the accuracy of these levels And what this is doing is it's looking at all the open interest in the spx and all the open interest in the spy And then our model combines that open interest And then normalizes the price so the combo level simply means spy spy xpx combined And so you get these strange strikes because we're looking at where spy is trading also So that is why 3267, which is an odd strike, you know, no spx options are listed at that strike But but it's what it's telling you is there's a big influence of spiders likely You know, uh, I don't know it could be 327 or something like that and spiders has a lot of open interest And that's why we're getting this weird blended price level But these levels will oftentimes show up as major support and resistance zones And and combo simply means again, it's picking up spiders and spx, which you know, they trade off of the same index They're very linked together And so spiders should be considered when you're looking at open interest And then the last thing to note is we talked about this implied move So we take the amount of gamut in the market and we look historically back at how much Range in the market or how much volatility is associated with that level of gamma So based on that We'd say a one standard deviation move for today is one percent in the market And that based on the time that we snapped the data it would imply Essentially, this is the upper and lower bound for the market on a one standard deviation move So hopefully that makes sense. So every day we tell you okay A one standard deviation move in the market is going to be plus or minus one percent And this is the anticipated range that that we would see We also do this on a five day basis because we think that there's some relationship between the You know the rolling five day exploration As well as you know the intraday or one day move So hopefully that covers the the metrics at a kind of a macro level. Please let me know if there's one that I missed No, I think that defines it really well. It's it's fascinating those combo levels How the yeah, it makes sense, you know, you got the different players from the different instruments and Those are major inflection points Yeah, you know, I I struggle, you know, sometimes these things a lot There's a lot of people that will produce and and I you know, I think Uh, I'm not trying to point fingers or anything But, you know, you produce a thousand levels and you put them on the chart and go look our level hit today, right? And well every five points you have another level, of course, some level's going to get hit, right? And so we're very careful about not inundating people's level So I know when you look at this chart, you see oh Brent's got, you know, spot game has got 25 levels on here But these are all spaced way out, you know, a lot of these are are not applicable today Somewhat similar to single stock stuff. There are a couple that matter, right? And so, you know I will leave it to the to you all to assess whether or not this was a successful support area You know, we didn't break the level we got within, you know, two handles of it And and that is the kind of thing that we'll often see right In terms of, you know, how close we get into some of these areas and we're just sort of the overall general Significant support and resistance lines are on the day, you know, these combo strikes really show up quite often And it's been very interesting to watch Yeah, yeah, I just and there's a few more questions here I actually had a question as well like the way that you are trading some of the futures here And you said you were looking for lots of volume moving in the direction that You're anticipating there due to the gamma But also let me like like going into that combo level there I would just imagine like you could just scoop up such good deals if you Are anticipating some of these levels and then Implied volatility is obviously going to be dropping pretty pretty pretty fast around that combo level And then like trading options from that level on up in spx or or are in the es Yes, yeah, and I So that's that's, you know, it's a very interesting point and You guys have these fantastic new tools the the iceberg Trackers and and some of these stop-run mechanisms and I have a lot of subscribers that Have sent me charts that show that those data points coincide with each other and I apologize. I don't have it loaded up in here That, you know You can get there's a there's a signal that confirms around these combo levels And I've had multiple people tell me this and so, you know, all of you are Are are likely, you know, well versed in book map and you guys show a lot of the tools that show you that this is a level that shows up from spot game and because there's big option of position there, right and then you will see a confirming signal Be it a, you know, be it an iceberg or a stop run or some other type of Flow that is shown up in the system that confirms This area as significant, right? And so Um, I don't think that you need to sort of just take our Level, you know and say like this is the only thing I need to watch for I think you will see that there is a fingerprint or something that be could be construed as dealer activity Or market maker activity around this level. So if you're what I'm trying to get is know where these levels are And you'll see something happen in the market that confirms that there will be a reaction here I guess is what is what I'm trying to say Yeah, exactly something in the order flow that gives you a key and and one of them being like on the way down Just like just massive absorption on the bid right Right, and it's you know, I mean this is unfortunately You know the way that I had this configured and and I need to go to book map school to to improve this no doubt but you know, there is There's a lot of liquidity kind of taking place You know in this area, right? Like there was there's really no bids You know taking place or any significant buying taking place and then for whatever reason here, you know things pick up Right and granted this is you know a couple handles higher than what we sort of had estimated here but this is a random spot to sort of For for this inflection point to take place in other words like if it was at 3300 I think anyone could look at oh 3300 well It makes sense that would be resistance is a big round number right or 3250 that makes sense because again It's it's it ends in 50 and people people are going to psychologically pay attention to that You know these numbers will turn at odd handles, you know 67 or 53 or whatever right? and so There's there's absolutely something to it and I think your tool is the book map Metrics that you have the iceberg track etc as I mentioned before I've had other subscribers You know point to these things as companies confirming signals That just give the levels a little more veracity so to speak Yeah, that's excellent. I mean just it's again just higher time frame levels and then looking at the order flow basically Right right and so, you know on a move like today, you know, I I personally and I I can't offer trading advice. I can't tell you what would work for you or if or not but I also have subscribers that just swing trade between these two big levels, right? Like you need to under you need to sort of assess where you think the mark's going higher or lower and then You know just ride between these two big levels and what's sort of interesting is that was sort of the way that played out this morning You know 3300 down to 32, you know 57 or 60, you know if you want to say that this level mattered here Uh, you know, I feel like it did and then you know, this may well mean revert right back into this other big area um So it's time frame. It's sort of I guess what your strategy is and how you want to overlay these things, I guess Okay, uh, let's see. Um, a few technical questions, uh, john, um is If you're asking about how to get this into the uh into the chart like a spot gamma has like on on the left hand column there, uh, that's part of the subscription service in his nose column. Uh, and then, um Uh jason, um jason's asking you if you have a service for index levels only for the stocks But it's just all all stocks. I mean, it's not like just sp y and and, uh Q q q or I guess that's what That's what the equity. Yeah, the equity. So the equity hub is is our product with our single stock product Okay, right. So that that shows everything. So if you just go on this Subscribe now button here. I don't mean to advertise here, but it's just this equity hub here So there's a 3,800 different names that you can analyze on your own With our standard membership in the bookmap advanced membership We send out a daily email also that gives our blurb about what we think is happening in the market And then you get all the levels and then you get the cloud notes If equity hub is just the equity up tool so you can sort of run your own analysis so to speak But that gives you access to all the stocks Okay, uh, and let's see here a lot of these questions you've already answered. Um, there's just kind of uh repeats about the gamma level zero gamma so et cetera And let's see Sven is asking at what point, uh Start uh dealers do dealers start hedging via futures instead of buying selling single stocks My um my understanding is that the Dealers tend to not commingle the book meaning if they're going to hedge a stock they hedge it with the underlying stock and I'm sure there's some overlap in terms of you know, they know how much of the market They're long or short and there's some overlap, but if you just think about it You know, how would you you couldn't have hedged tesla like say qqq's right? It just it just wouldn't have worked tesla was going up 20 every day or whatever and cues were significantly lagging So my understanding from talking to market makers is that they will typically use the underlying to hedge the option So if i'm trading apple options a hedge with apple stock i'm trading microsoft please microsoft I think there is some you know, kind of like a beta override You know with a lot of this with a lot of these names and and obviously they're looking at things also You know from their book as a whole but in general, you know, they're they're underlying with they're hedging with the underlying and that also could You know, do they care about hedging exxon mobile with the underlying probably not as much as they care about hedging you know like zoom or something right so Um, I hope that it helps to answer your question on a daily basis the most important hedging time In my view is 4 15 and that's why you can see a lot of crazy moves and Excuse me 4 o'clock and that's why you can see so many crazy moves into that 4 o'clock hour Because at 4 o'clock, you know when the books are closed 4 15 the books are closed That's when the risk metrics are run and that is when dealers and the like, you know Their compliance and risk officers are going to be looking at the portfolios to see how much risk is on the books And and dealers got to make sure that they're square, right? They can't have Extraneous risk and so I think that's why a lot of times you'll get Kind of wild moves into the close because you know, the books have to be Hedged out, you know, you know by the close because that's when the that's when the risk is run Okay, um, I think that's that sums it all up. I got through all the questions here cool, uh I just fascinating stuff. It's just a whole another level Kind of behind, uh, you know, just the the direct trading here And just these these massive players with these huge positions um, and uh, how it just uh Price is moving within those areas. It's it's just fascinating all the all the different, uh, dynamics here uh, anything else you want to, uh, go over kind of, uh, uh Last minute here or our final final comments, Brent Yeah, I would I would just say so one of our big pushes here is to add in all these single stock levels into a cloud notes feed And so, you know, we're really excited to do that so that these levels can just be overlaid onto book map and and Again, you can look at the stop runs and all these different new tools you guys have rolled out Because I think there will be a lot of overlap there and I'm really excited to watch that and see that sort of unfold And so, you know, that's one of our our big projects here Um, and I would like to also say I'm very grateful for the opportunity again bruce, um, you know book map's been a great partner of ours and it's a It's a fantastic tool to sort of, you know, visualize what's happening and and it's been a it's been a major help for us That's excellent. I I've got to get to this last question here. Kendall has asked like three or four times now He's asking about vana v a n and a And uh, wondering, uh Let's see here exactly what he says here Exam, uh, will you be seen more regarding this? Um, does it give an indication of levels? Where volatility will end? Uh for the day session Yeah, so uh, so we're looking at rolling out a vana metric and so for those of you aren't familiar with that concept is what vana is essentially measuring is The amount of deltas that a dealer will need to Trade for a given change in implied volatility So to think of this as a more macro level if the vix drops I believe that the s and p is going to go up Right and that and the the reason is because the vix dropping is telling you that implied volatility is going down So what does that mean? That means if implied vault drops put positions lose value, right? They that is telling you that oh the vix is going down. That's showing you that fear is residing in the market so the mechanics of that are essentially measured by this this Uh metric called vana and that can tell you that okay when vix goes down or implied volatility drops That's going to tell me that dealers are going to start buying back short futures All right, and conversely if the vix spikes they're going to start shorting futures or the market could go down So I tell my subscribers quite often watch the vix as a confirmation tool, right if the vix is trending lower all day we're likely going to See the market rise particularly into the close because that's telling you lower vix is telling you that options are losing value And that's mostly impacted by put positions And so that's telling you that puts are being closed or they're losing values and some dealers are too short They're gonna have to buy some stuff back and you know that mechanism works the other way So vana is the actual metric you could use to sort of estimate. Okay. Here's how much Dealers would have to buy it or sell for a given change in implied volatility or for another way Think of it sort of crudely is for a given change in vix. And so we're been working on a few metrics You know vana type signal Unfortunately a lot of times The change happens in the middle of the day, right? And so you can't Really pick that up unless it's sort of a more of a little bit more of a real-time metric You know, I think there's a macro level which is what we're trying to work out meaning like a day-to-day change But like yesterday the reversal for instance I think was largely led off of a bunch of very big put positions that were bought and sold intraday And so, you know part of that mechanism I think that led to rally is this vana we call it a vana rally because implied volatility gets crushed and dealers got to buy back short futures And so we're working on some metrics to sort of You know to measure that and and to to make it one of our Things to watch so to speak But you know the underlying force of vana is this idea that implied vol goes down dealers got to buy futures back If implied volatility i.e vix goes up dealers need to short futures Okay, uh, and let's see just uh, there was a couple more questions here. Um about nels about the brentz delta Quotes delta configurations Um They if you can right maybe right click on that and take a look at the uh the plus minus column that you have there They're curious about your config Yeah, uh, this comes from my good friend walter Um Who bruce, you know, well Yeah, this is some of his setup. Um, so what i show the configure calm. Is that what i'm trying to show you all Yeah You want to look at the plus minus sorry about that plus minus one. Yeah Okay, so just just five holes there. Yeah. Yeah, so, uh, so walter is over at trade to win He's a book map partner as well. If you i think he's listed on the site. He is a fantastic Trading tools and uh, he has a trading room and the like He's just a he's a wonderful individual just in general and uh, I've been using some of his config setup I removed it for this talk because I wasn't familiar with how it worked for single stocks So this setup or this, um View you're seeing is related to him Okay, and then um, let's see. Ian is asking about Which packages will include book map integration with cloud notes? Oh, I'm sorry. I can answer this one advanced or basic. Uh, both will work. Ian cloud notes is it doesn't matter So just as long as you're you're set up with a live Book map version global or global plus um Yes, we just right click and then go to notes cloud notes and then there's a csv. We give you that you can plug in Here, so this is the csv for that Okay, uh, let's see. Um Let's see. Ian is asking are you um, there is a feed for futures. Um, getting the the vix From dx feed. I don't know if you're looking at the vix in in book map He's asking me. Oh me personally. Um, I have not looked at vix futures. It is a product that I am interested in rolling out Uh, what we're trying to do is link together Vix and some of those etps vxx and uv x y and sort of make combo levels out of those Um, and so that is sort of held up a little bit the analysis But it's something that we very much want to do Okay, uh, and then I'll just uh Mention here guys like I put all of spot gammas Contact information into the chat there as well as the special offers for book map if you're interested in that That you can get from brent And then brent, I'll I'll Let you sign off here with maybe going through your products again because ian is asking about the different Pricing and which has the integration of cloud notes in book map Sure, uh, so i'll just show you this the site real quick and thank you for the opportunity to do that and i'm trying to Overmarket to you all but if you just go to our site, which is spot gamma.com and you click subscribe now The spot gamma advanced is where you get the cloud notes link um, and so that this is what gives you that es link and nq so Uh, right now you have es features and nq features you get the cloud notes for Spiders and qqq are right around the corner for adding those levels in and then you can also sign up for the full member Which gives you access to the equity hub as well as the advanced Combination so it's these two combined which still gives you those cloud notes And then we'll be rolling out an equity hub advance which gets you the cloud notes for all the individual stocks That should hopefully be out in about a month Okay, excellent. Um, all right. I think that's it then uh, well green Excellent, uh stuff brent. It's it's just fascinating stuff and uh a whole another level here that uh most of us just aren't Aren't familiar with uh whatsoever Yeah, well, well, I hope it helps. I hope the Examples uh spark some some interest and some thoughts there and and um, you know, hopefully most of all it's useful and helps everyone Be more profitable Excellent. All right. Well, thank you everybody. Thank you very much brent. Uh, and uh, we'll we'll catch up another time That's great. Thanks. Okay. Bye. Bye everybody