 Hello everyone welcome to options with Doug Streaming live daily on bookmap discord and the bookmap YouTube channel at 1 30 p.m. Eastern time and Hello moon Walker. Good afternoon to you before I go any further Let me go through the disclosures all book map limited materials information and presentations are for educational purposes only and Should not be considered specific investment advice nor recommendations Trading futures equities and options Involve substantial risk of loss and is not suitable for all investors Past performance is not necessarily indicative of future results as a reminder The focus of my presentation and the focus of the options with Doug Channel and bookmap 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 I have a two-step process for trading and First is planning and that's based on positional analysis And I look at how traders and market makers are positioned in the options market and how those positions Changed from day-to-day to help develop a thesis regarding the expected trading range for the day as well as a directional bias and This is different from what many other traders use like technical analysis or fundamental analysis I think positional analysis is a new way of looking at the market that provides a significant edge and The second step in my process is execution and I look at real-time order flow and bookmap and Real-time market maker hedging flow and spot gamma hero to confirm my thesis and for setups for both entries and exits and questions and comments are welcome and I will be as long as they're on topic so on topic questions and comments are welcome And I will be monitoring the options with Doug chat and Discord as well as the chat and YouTube Okay, let's get started and What I want to talk about today is first of all Go over some economic data go over some news for this week Economic data and events and then I'll go over our positional analysis And then finally talk about setups So first of all news economic data and events coming out this week Not anything really significant As far as economic data other than maybe this PPI and Retail sales coming out tomorrow morning at 8 30 a.m. Eastern time and that could affect the how the market moves Before the open then there are these industrial production numbers At 9 15 a.m. And notice as I'm scrolling through here all the Fed speakers So all week long There are a number of FOMC members that are speaking and then Thursday building permits I This is indicating that it is of High significance I'm not so sure about that. So anyway building permits on Thursday morning and Continuing jobless claims at 8 30 a.m. 8 30 a.m. Eastern time and then finally the January 20th is the monthly options expiration and that should I'll talk about that more but the levels going into that are the 4,000 for spx and 400 for spy and then those levels could potentially change as a lot of gamma expires on on Friday and Market make traders and market makers position themselves After the January expiration on Friday Okay, so again, we're looking for the spy and spx 4,000 the significant levels potentially pinning into Friday and Spot gamma is looking for spx to trade in the 3,900 to 4,000 range Okay, let's go over our position analysis Well, I'm waiting on that. I want to look at start with a big picture and this is the spx 20-day one-hour chart and This is showing the current spx spot gamma levels and the level that is really in play today Well, there are actually two levels and I'll show in a zoomed-in chart. So notice the 4,000 level here and That is the call wall and that is the also the absolute gamma strike For spx and it is playing a large role today And now let's zoom in and I'll look at the Look at a closer-up view And this is showing not a lot of movement right up right below the call wall the 4,000 level And also there is a combo level right below that And notice the high for the day here at 40 15 And this was a a level that spot gamma noted as resistance in the AM founders note and the reason is that is the spy call wall Okay, so that is the with it So those are the spx levels one of the reasons that I'm looking at this chart is The Spot gamma cloud notes for book map do show spx levels But right now they're there. They're still using a 25 point difference between spx and spy and that's wrong It's 20 points and I've sent them an email to You know to adjust that so anyway, this is the this is the spx chart showing the correct levels You know at the at the right numbers, all right, let's look at book map now and this is the ES S&P 500 features and book map And I'm showing two columns of levels and the first these are the spot gamma cloud notes that I mentioned and Again, these are these need to be adjusted down So this is showing the spx call wall at 4025 and the more accurate level is at the current level of About 420 So we can just go back to So es 4020 and we can see that SPX right now is Trading just below that level. So this this is the more accurate SPX 4000 level and again that is the call wall and the absolute gamma strike and is expected to act as resistance and Potential level for pinning At the end of the week and in the other significant Thing to look at here This is this is my level. These are my cloud notes and These levels are correct as far as the spy levels go. So this is the spy 400 call wall and the thing to note here is that was the The final resistance level today or so far the high of the day that spy 400 call wall now this Resistance and I actually I need to change that so I should have put that down here and I'll adjust my charts but I so far I've been sticking with the the 25 point difference That spot gamma is using for For these levels, but I do need to make an adjustment Okay, so those are the levels in play and again the important levels are the spy 400 and SPX 4000 acting as resistance and Overnight or actually over the weekend between Friday and today, there really no significant shifts in the key levels SPX volatility trigger moved up slightly from 39 35 to 3970 and that is the the volatility trigger is spot gammas Proprietary gamma flip level where gamma would Market makers position on the gamma curve would shift from negative below that level to positive above Okay, and there's a question in YouTube What are those white and red arrows in the toss chart? Oh, that's just some Those are actually red and blue and I I should turn that off. That's just That's some other indicator that I Have had in the past and really don't look at it Okay, back to book map. So again Right now SPX is trading Just add or below the 4000 level And again, there are no significant changes in the And again, there are no significant shifts in levels other than the the shifts slightly higher in the SPX volatility trigger and let's take a look at the absolute gamma levels For SPX now and again, this is just going to emphasize the importance of that 4000 level. So what we're looking at here is absolute gamma and positive or a call gamma above the zero line or a negative or Put gamma below shown in teal and calls are shown in black So again 4000 level that's the call wall as well as the absolute gamma strike and Here spy and there's the 400 level and That is the absolute or the key gamma strike and then There is significant gamma down to Put gamma down to 380 which is still the put wall and the put walls strike with the largest net negative gamma And that can be expected to act as support So there's the The range and spy and probably more real realistic for this week is is 398 to 400 One of the reasons for that Let's take a look at the data and as usual I'm going to look at gamma notional and this is market makers position on the gamma curve and this is showing SPX and the left column and Spy on the right so and I compare morning from morning So this number is actually from from Friday afternoon, but I compare Friday morning to in this case Tuesday morning and this is Showing that market makers position on the gamma curve is positive gamma and that means in this case that Market makers are long calls. That's the yes, that's spot gammas assumption and that means that they have to trade against price To hedge their delta exposure So as price increases, they have to sell futures and as price drops They have to buy futures to hedge their delta exposure and that tends to reduce volatility so that's one of the primary reasons I'm looking for a Smaller trading range this week and that's SPX and spy is still In negative gamma Not significant, but it is still a negative gamma. So according to this Market makers would be trading with price action. So market makers in this case would be Short puts and they would need to Trade in the direction of price to hedge their delta exposure. So kind of a mixed picture here, but overall I think pretty neutral maybe did you know if you look at the total slightly negative gamma But you know, I'm looking at it as as neutral and just to give you an idea of the shifts on Friday morning SPX gamma notional was 210 positive 210 and now it is positive 297 so a shift a little bit higher and Spy on Friday was minus 664 and today it's minus 580 so a little bit less negative and Finally, let's look at the Vanna charts and this is a Graphical illustration of what I was just saying so what this is showing is how market makers delta exposure Changes with changes in price and that's shown in the horizontal axis here And they're delta notional or delta exposure shown at the vertical axis So what this is showing and I just draw a line through this green curve, which is showing how market makers delta exposure changes with changes in Price and implied volatility and that is the Vanna effect and that's again shown by the green line And what this is showing is market makers delta exposure increases as price increases and that Just illustrates why they have to sell futures as price rises they want to remain do Delta neutral and so this is Assuming a Delta node neutral position at the open today and as price deviates from that And if it moves up, they would need to sell futures to hedge their delta exposure And we can just see how that has shifted over the last few days To more positive gamma and then let's take a look at spy now we see spy in the other Going the other direction so get a mixed picture between spy and spx showing that their delta exposure Increases as price decreases and let's just take a look at how that has shifted over time So not a lot of change for spy okay Any any questions so far not many I don't see Any questions in in YouTube or in discord, okay great All right, so let's take a look at setups now And the first one that I want to take a look at is Apple and what I'm looking at is this Is this reversal divergence lower? So traders start Selling calls and buying puts and then price follows a few minutes later You know looks like almost a half an hour later, so it gives you plenty time plenty of time to to watch for this setup and look for a point on Bookmap of potential reversal, so let's do that. Let's go to book map now go to Apple So here's the reversal lower at the 137 liquidity With the target at the 170 135 key gamma strike Assume that on that one interesting thing about many stocks is the The high amount of liquidity that comes in Right at the open and even more at the close and that keeps the point of control that purple line Pretty much at the same level all day So I have to you know if I'm looking at book map with this Big pink dot in there. I have to increase all the other volume dots to get any information so here's the reversal and You can see the the small red dots here That's a sell suite coming in and the pink dots showing Market sell orders aggressive sellers coming in and Starting to move price lower and remember they started Selling calls and buying puts around 10 a.m. So that's the setup in Apple one thing I meant to show Let's take a look at This is my key gamma strike list And what I do is I track the key gamma strike every day I Track the current day and the previous day and Then I color code these green indicates that the price or the key gamma strike Increased from the previous day and red indicates that it is Has decreased from the previous day and not providing a lot of information here And one interesting thing to note is this Decrease in the key gamma strike for Tesla Which didn't work out today. Tesla was a great bullish setup so not always an indication of of Price direction for the day and also I posted my spot gamma Watch list in discord today, and I'll just bring that up for For those in YouTube So I ranked it from strongest to to weakest and a couple things to note here Tesla at the top and Nvidia and what this is showing is the Hero signal, which is the hedging impact of real-time options and the strength of the signal Compared to the last 30 days and that's shown by this The entire length of this slider and also the last five days and that is shown by the colored portion So this is showing that the hero signal for Tesla is strong is the strongest it's been in the last 30 days and Stronger than it is being in the last five days and the same for Nvidia and another good long setup was Snowflake So we'll look at all those Okay, and back to setups. So there's Apple the Divergent short and AMD Same kind of thing and then Reversal higher Let's take a quick look at AMD There it is There's the reversal lower all this cell liquidity coming in Cell limit orders lower high Not a lot of range today. This is certainly not Not a great setup and we've looked at ES. Let's go back to that actually Yeah, we'll take a look at ES again, and I want to look at hero. Let's go back to hero We'll take a look at ES now and this is showing options trades for SPX and spy Combined into one signal In ES here, so it's showing SPX and spy Call and put transactions The first thing to note here That it gave a good signal for a long in the morning Traders are buying calls and selling puts and Then a divergence reversal lower So price followed in both cases and as you might might gather I like to look for divergences. I think they Provide great signals Gives you plenty time plenty of time in advance to Set up your trade. Let's go back to book map. So the way I have the wrong line color here I'll just show it with my pen tool so the way to look at this is You see the divergence setting up in hero Let's go back to hero now, and let's see exactly what traders were doing So the total signal is a little bit more clear the combined signal of puts and calls But it shows that traders started selling calls as price was moving up to that spy 400 level and They also started buying puts Leading to that great divergent setup. So you see this lower high in Hero at step one Then go to book map and you see this level at the 400 call wall And expect that to act as resistance Again, that's the spy 400 call wall Expect that to act as resistance and it does and there's your short set up Alright, let's take a quick look at The next one is Google go to hero Actually, let before I do that. Let's go to spy and Hero here and you can see the similarity between spy and NES same setup Options trade supporting along First thing in the morning and then the divergence set up lower. Let's go So again to confirm there's the reversal lower at the 400 call wall So same thing at spy Let's go take a look at Google and here in this case This is not much of a setup, but it's worth looking at this Confirmation reversal higher is watching the total line Price pretty much starts rising just about the same time. All right, let's go on next one was meta and In YouTube ancient the architect asked did I already cover Apple? Yes, I did so you'll have to Check the unless I have time at the end. I'll go over it again Otherwise take a look at the recording And I cover Apple Covered that a few minutes ago Let's look and so I thought this was a Divergence higher set up reversal higher Seeing that traders started buying calls And they were buying puts but they were buying more calls than puts and then price starts to rise a Few minutes later. Let's go take a look at book map now Not a lot of range in book map today, but there's the reversal higher At the 135 key gamma strike So pretty pretty choppy action in meta Let's take a look at Netflix and these are the better setups now so let's go to Go to hero assume that on this So this is what I noticed Let's just see if this provides any additional clarity Not really I'm pretty zoomed in so what I saw Was traders started selling calls price Initially dropped Increased and then reverse lower again So again when you see this divergence set up in hero the next step is To go to book map look for potential reversal level No, no key gamma strikes and play here But price did Here if you miss this reversal There were several tests of the what 328 level and then a move lower down to the 325 Round number liquidity level. Let's go back to hero now Total signal zoom all the way out So it now looks like traders have They've stopped selling calls and started buying calls and price is moving higher again Okay So the setups are going to get get even better other than the S&P 500 And here's Nvidia and notice here and the morning traders are buying calls and that was what was driving price higher and then as they stopped price started to drop and then If I was clear this I'm going to take a look at it. I'm going to change the rolling window period to 30 minutes That should give a little bit more clarity and it looks like price traders Have started buying calls again. They did around 1130 and price started to move higher and then as they started buying calls again around 130 price started moving a little bit higher again So let's go take a look at book map now Go to Nvidia So here's the morning setup pretty sharp uptrend And it would have been pretty difficult to catch this first move, but there were a couple of nice pullbacks This one close to VWAP And this one just below VWAP around the 172 level So multiple pullbacks With a with liquidity targets really at 173 And notice the liquidity that comes in just right a couple of minutes after the open 173 175 177 178 So they made it up to one 177 and what think to note here is This is the upper edge of the expected move for the week And this is something that I just get from thinkorswim and it's the one expect one standard deviation Expected move for the week based on option to volatility So interesting how price stopped right at that level so now in video reversed higher about 1130 And made it back up to that upper edge of the expected move and The 177 liquidity and one thing to notice here something that I don't Look at too often But CVD this dark blue line Has been rising all day and that just and you can tell that by looking at all the green dots here all the aggressive traders buying with a rising CVD corresponds to that all right the last one Let's see. I've got one on my other computer that I want to look at Give me just a moment, and I'll share my screen Let's go to snowflake That's the one that I wanted to take a look at Let's go take a look at hero now All right, so there's snowflake take a look at hero So notice another strong hero signal now and it's not not quite as clean as some other stocks, but Hero has essentially been rising All day. I'm gonna zoom in Let's go to the morning session and that provides a little bit more clarity. So here's the Reversal higher around 940 945 As traders were buying calls Change that back and let's go take a look at book map again Remember we have to go here So the The first target was the 145 level That's shown here, and then remember we looked at Zoom all the way out this sharp increase again. So traders were not doing much Until about 12 30 12 o'clock price leveled off and as they started buying calls again That's when price started to to increase So one important thing to note here is Let's just go back to my couple things to note here one one again the this this is the screenshot that I posted this morning of my Hero watch list I posted this about 950 So we've seen great setups and Tesla spy Nvidia now snowflake and The only one that we haven't looked at yet is Tesla and I posted that and and Discord as well And other than spy the best setups were in the higher beta stocks Tesla and video snowflake and remember I talked about Spy the ES S&P 500 being in a Kind of a neutral gamma regime and expecting More of a trading range today So that is a good time to look at these higher beta stocks for more movement, and I'll show you for example Let's go to Put that on Tesla and then let's compare go to book map and compare first of all Spy so again, there's the 400 call wall expecting that to act as a resistance and It does so my expected range for this try For this move higher reversal higher in the morning Was about two points Seeing the reversal at the red remember we talked about it the first thing in the morning that traders were Taking positive delta positions. That was not the best setup for spy The reversal at the call wall was the bitter setup But anyway looking at it first thing in the morning here seeing the reversal at the 398 C1 level and Your expected target is The 400 level just two points away. So that's the expected trade for spy and then on the other hand Tesla and again, this is the setup that I posted. I did post it a little bit late. Sorry about that but this is the trade in Tesla this morning the long setup and here the expected range was five points From the reversal just above the 125 level up to the 130 call wall, right? Let's let me check for questions and And Sam Pan asked what color indicates what white etc. I Assume you're referring to the hero chart. Let's take a quick look at hero for Tesla And why does price and the purple line is the total line that shows put and call transactions I'm reading a question from RT RT RT All right, so if your thesis supports a buy order then Then order flow and book map is opposite confirming a down market. I you know, it depends so today I had no real directional bias for the S&P 500 if that were if that's what you were talking about. So I was looking for these higher higher beta stocks like Tesla so my Thesis for Tesla for example was bullish. I was looking it was it was strong in Tesla was strong pre-market and then at the open I saw that Saw that Tesla was Traders were buying calls in Tesla and we'll see that right now See the orange line rising Let's zoom in here. I'm gonna go to a bit 30 minute look back period go to the morning So we can see that a little bit more clearly So traders were I'm looking at the orange line now and that's showing the rise and call line shows that traders are buying calls price drops and there's your entry point and RT is RT RT is asking about my thesis and You know, I guess a thesis is just a An assumption or expectation and doesn't always work out. I think the expectation for Spy so far has worked out today a reversal at the At the 400 call wall level and that again I showed that traders were Fading that move options traders were fading that move Well before it happened You know signaling that potential reversal at 400 then for Tesla for example if I had had a thesis that Based on the falling key gamma strike That it was bearish this order flow and hedging flow Did not confirm that so Seeing that I would look for long, which is what I did look for long and in Tesla and again, that's the one that I That I posted in discord and San Pan ask again color white blue orange and hero and First of all the the legend has shown up here. I know it's a little bit small Maybe hard to read on my screen But Calls or orange Puts are blue So a rising orange line means that traders are buying calls and here it means they're selling those calls So they're taking profits, which is the correct move and then They started They're also selling puts but mainly buying calls in the morning and I think that was the primary driver of price In the morning. So let's go take a look at book map now There's tesla Here's the setup in the morning And again, we see that traders are buying calls and there's your Drop lower here actually two setups So if you miss the first one There's the second pullback the first reversal the second pullback and the very clear target at the 130 call wall and notice One other thing here all the green dots. So this small green dots here Are showing a buy sweep This is what i'm looking at And then all the market buy orders shown by these larger green dots Up to the 130 call wall So great setup in In tesla here Okay So again, I showed Good setups in the s&p 500 Both long and especially the short the reversal at the 400 spy 400 call wall And then some great long setups in the higher beta stocks like tesla and vidya and snowflake And let me do a final check for questions and a discord Gray asked how often do you update the call wall level that call wall level comes from spot gamma So let's take a look and i'll show you where that That comes from Let's go to equity hub And this is part of the part of a spot gamma subscription And this is showing the call wall level and the call wall depends on what options traders are doing if they're not If they're not buying calls And not supporting that level then nothing changes or it could fall But if they're buying Calls at higher strikes You would expect that Level to rise so the the update to the call wall this Information is updated once daily. It's based on changes in open interest And that is done once a day sometimes during the night But again the the actual level of the change depends on what what options traders are doing So I hope that answers your question. So I I changed that on my Bookmap chart. I do that in a spreadsheet of my cloud notes and I do that whenever the call wall level changes I'd hope that answered your question Then in youtube And no, thanks. He's recommending the discord for book map is free and has a wealth of knowledge How do you recommend people check it out if they haven't already? Thank you very much. I agree. Yeah, it's all free Whether you subscribe to book map or not And uh all are welcome And again, there's some great traders in here posting Very good information so That's all I have for today Thank you very much for your questions comments And watching and I will see you tomorrow. Thanks a lot. Bye