Hello, everyone. Welcome to Options with Doug, streaming live daily on Bookmap Discord and the Bookmap YouTube channel at 1.30 p.m. Eastern Time. Before I get started, I need to go through the Disclosures. General Disclosure. I'll book map the admitted materials, information, and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations. Risk Disclosure. Trading futures, equities, and options involve substantial risk of loss and is not suitable for all investors. Pass performance is not necessarily indicative of future results. Here's my contact information. The best way to get in touch with me is through Discord. My name on Discord is Doug P. Also on Bookmap Discord, there's an options-doug chat channel. It's a great place to post questions, comments, and content related to the topics of my presentation and the topics of the channel, which I'll go through in just a moment. And note that Bookmap Discord is free and available to everyone whether you subscribe to Bookmap or not. So again, Bookmap Discord, a lot of great content there, including my channel. And as welcome. I'm also on X, formerly known as Twitter. My name there is at Doug Plus. The focus of my presentation today and the focus of the options-doug chat channel is options order flow, the impact of options markets and stocks and futures, and the influence of market maker hedging flow on price action. I have a two-step process for trading and the first is planning. And I use positional analysis. I look at how traders and market makers are positioned in the options market and how those positions change from day-to-day to develop a thesis regarding the expected trading range and volatility for the day as well as the directional bias. And the second step in my process is execution. I look at real-time order flow on Bookmap and real-time market maker hedging flow on Spot Gamma Hero to confirm my thesis and for setups for entries and exits. And when I talk about setups today, I will be talking about an underlying asset. And setups can be taken any number of ways. For example, with the S&P 500, setups can be taken with ES futures, SPI shares, SPI options, SPX options, or even ES options. Questions and comments are welcome. And I will be watching both the options-dog chat channel and Discord as well as the chat and YouTube for your questions and comments. Please feel free to post and I'll do my best to answer your question. And hello, trade and sale. Haven't seen you in a while. Welcome. Glad you're here. All right. My agenda for today, news items. First, I want to cover news items, economic data, events, and earnings. Then I'll go through my positional analysis for today. Then I'll review some setups from earlier today. And then I'll take a look at the live market. And when I get to the live market, if anyone has any stocks they want me to take a look at, please let me know and I'll be glad to do that. All right. So there was just one data release this morning. That was the Michigan Consumer Sentiment. That was at 10 a.m. And that came in lower than expectation, also expectations and lower than the previous number. And then coming up next week, I believe there is VIX expiration, CPI data report, and of course the November monthly options expiration. All right. So that is the economic data to wrap up the week. And then on Monday, I'll talk more in detail about what's coming up for next week. All right. Let's start with positional analysis now. So let's go to the SAP 500. I want to start with the SAP 500. And very interesting today. I didn't expect such a strong rally. But anyway, now SPX is trading above its call wall. We'll talk more about that in just a moment. Let me check for questions. All right. Sparky asks, can I talk about what those correct index relation values mean that you post in the book map discord every morning? Sure. So I'll talk about that in just a moment. So SPX now above the 4,400 call wall. All right. So before I take a closer look at this chart, look at this chart more, I want to take a look, first of all, at a larger time frame. So I'm going to go to the SPX. This is a 30-day one-hour chart. I'm going to point out the key turning points and levels on this chart. So first of all, turning points. This is the October 6th, September jobs expiration. Gamma squeeze made it up to resistance. So that's right around this line right here, right around that upper end of that range. And the reason I'm drawing that is because SPX is now trading above that level. So the September jobs expiration rally found resistance, price moved lower. This is the October monthly options expiration, very put-dominated, negative gamma. The expectation was for a put-vanna rally, and that did not happen. It lasted for a couple days. Price continued the downtrend lower. And then this is the massive put-vanna rally that began on Monday, October 30th. A huge IV collapse. During this time, XBX, gamma notional shifted from very negative to positive. Start of the day negative, and most likely on Monday will be positive again. That's almost for certain. So those are the turning points. Let's take a look at some levels now. So first of all, the dash purple lines are showing the lower and upper weekly expected move. And it looks like SPX may be heading up toward that upper weekly expected move at 44.18. All right. And that's based on the options market. That changes once a week. Then the dash blue lines are showing the lower and upper daily expected move. SPX trading well above the upper daily expected move. There are also some spot gamma levels on this chart. These are proprietary spot gamma levels. These are available to spot gamma subscribers available on a variety of trading platforms. Here we're looking at thinkorswim. I'm going to point out the key daily levels. So first of all, there's the put wall at 4000. That's the strike with large net negative gamma that can be expected to act as support. That's well out of play. Then the next level up is the volatility trigger. That's at 4345. That is spot gammas proprietary volatility flip level. Below that level, market makers position on the gamma curve is negative. In a negative gamma environment, market makers have to trade with price to hedge their delta exposure, and that tends to subdue or decrease volatility. On the other hand, that tends to enhance or increase volatility. So below that level market makers position on the gamma curve is negative and they have to trade with price to hedge their delta exposure. And that tends to enhance or increase volatility. On the other hand, above that level, market makers position on the gamma curve is positive. In a positive gamma environment, market makers have to trade against price to hedge their delta exposure, and that tends to subdue or decrease volatility. So SPX trading well above that level now. And SPX did start the day slightly negative. Again, like I said, almost certainly will shift to positive on Monday. Alright, so that is the one more level, forgot to mention, is the 4400 level. That is the call wall. That's also the absolute gamma strike. So the call wall is the strike with largest net positive gamma that can be expected to act as resistance. SPX trading above that level now. That's also the absolute gamma strike. That's the strike with largest absolute negative and positive gamma. And in a positive gamma environment, there's some expectation for mean reversion around that large gamma level. That is the level with the highest amount of gamma weighted open interest. Alright, let's take a look at a one day chart. Just to get a closer look at the levels and play for today. So very mechanical uptrend that began around 1030, 1045, SPX trading above the upper daily expected move, that resistance level, and also the call wall absolute gamma strike at 4400. Let's go to book map now. In book map, I have my own cloud notes. I'm showing SPX levels. So there is the SPX 4400 call wall absolute gamma strike. So Sparky, the reason I post those index relationships every day is this is what I use to set the correct level on my ES chart. So I'm showing for the ES, SB 500, I'm showing the relationship of these levels to ES. So I'm showing the ES to spy ratio. Today that was 10.0545. That changes a little bit every day. And then ES minus SPX. This morning was right around 15. That's what I'm using. So today right now it looks like it's somewhere between 15 and 16. So I'm showing SPX 4400 at ES 445. So that's why I post those relationships just to show the correct levels. So what I do for the spy 440 level, for example, is I multiply 440 by 10.0545. And then that gives me the correct ES level to show on my chart. So I have spy levels as well. So that's the spy 440 call wall. And then earlier today, the spy volatility trigger at 435 more or less acted as support. Acted as support here. There's a breach. Then a break of this trend. And then price began the ES began the huge rally that continues up to the call walls. All right. So Sparky, I hope that helps. Again, I'm just using those relationships to show these levels in my cloud notes here. So ES trading above its upper daily expected move. And the rally continues. And I'll talk about setups in a few minutes or the one setup for today. All right. So that is the SB 500. And good afternoon, Don. Welcome. Glad you're here. And trading sales says, yeah, you've had a rally. I'm not so sure. I won't take a closer look at that in a minute. All right. So let's take a look at NASDAQ now. This is in Q futures and book map before I take a closer look at this chart. I want to take a look at, first of all, a QQQ chart to isolate the QQQ levels. Very steady mechanical uptrend that began really it began about 630 am right here. And one thing to note is the QQQ trading above its volatility trigger at 370. And that is also the absolute gamma strike. And then the call wall for QQQ remains at 380. And I forgot to mention mentioned shifts and levels for the SB 500. So for SBX and spy, the volatility trigger shifted lower. And also for spy, the absolute gamma strike also shifted lower to 430. All right. There's QQQ volatility trigger at 370. That's also the absolute gamma strike. And the call wall remains at 380. It's been there for quite some time. So for QQQ, the volatility trigger and absolute gamma strike shifted lower just like spy, the put wall did shift higher for both QQQ and spy. All right. Here is an NDX chart. And just to show you the strength of the rally today, this was the high from yesterday. So this dark area is the regular trading hours yesterday. That's when the downtrend began. First of all, with the bond, well, the downtrend began. And then this was the 30-year bond auction. And then at two, let's see, what time did? I believe drone pal began speaking right around two, just adding fuel to the fire lower. And that was very short lived. Now, NDX trading well above that level and approaching the 15,500 call wall. All right. So that's QQQ, NDX. And for NDX, that 15,500 call wall is in play. That level did shift higher from yesterday. Also, the volatility trigger shifted higher. Put wall shifted lower. That's for NDX. All right. Let's go back to NQ now. So Sparky, again, for NQ, I have my cloud notes again. And here, this is the NDX, 15,500 call wall. And that NQ to NDX difference is 67 points. So I'm showing that at NQ, 15,567. And other levels in play for today. QQQ, 372. Kind of a launching point for the rally this morning. NQ trading above its upper weekly expected move. Also the upper daily expected move. You can't see it, see the label here. But it's this dashed blue line. That's the upper daily expected move. And I'll talk about the setup in just a few minutes. All right. Let's take a look at gamma notional now to see how market makers were positioned on the gamma curve at the beginning of the day. So note that gamma notional did become negative for SPX. These numbers all became negative or more negative than yesterday. So I guess in that sense, you could say this is a potential put Vanna rally. The Vanna model is a little bit, shows a little bit different picture. We'll take a look at that. All right. So this gamma notional negative for every index product here except NDX, which I really don't look at. So SPX, gamma notional shifted back to negative. Spy gamma notional became much more negative. That's 1.42 billion. So again, they all became more negative. So this indicates for all of these index products that at the beginning of the day, traders were long puts, market makers are short puts, and they have to they have to trade in the direction of price to hedge their delta exposure. All right. So I could ask, can you share the script for inserting the price levels in thinkorswim? No, sorry, I can't do that. That is available to spot gamma subscribers. So you need to subscribe to Spot Gamma to get that script. So sorry about that. I just, again, it's available to Spot Gamma subscribers. All right. So this is the, oh, Slow Desiree says news coming out soon. Treasury statement at 2 p.m. Eastern time. All right. So we'll watch out for that. All right. Let's take a look at the Vanna model now. We'll see a graphical representation of what this means. So this chart is showing SPX. For SPX, market makers delta notional, that's their delta exposure on the vertical axis price on the horizontal axis. There are two curves on this chart. The first, the light grade curve shows how market makers delta notional changes with changes in price only. The purple curve shows how market makers delta notional changes with changes in price and implied volatility. And that change in delta with a change in implied volatility is the Vanna effect. And Vanna is a second order Greek. So that's the curve that we want to take a look at. All right. Today, the low of the day for SPX was right around 43.54. Some are between these two lines. So according to the Vanna model for SPX, there was very little potential for a Vanna put Vanna rally tailwind. And what this is showing is price increases. Market makers will need to sell futures to hedge their delta exposure. Remember, market makers always want to remain delta neutral. So if their delta is increasing, they have to sell futures to hedge their delta exposure. Let's see where SPX is trading now. All right. Just above the call wall at 44.03. So that's somewhere around here. So today, SPX has been trading really in this range of the Vanna model from having a slight, very slight tailwind to a headwind. So at least according to the SPX Vanna model, very little potential for a put Vanna rally. Now that may not necessarily be the case, but that is what the Vanna model is showing. All right, let's take a look at SPI. Remember, gamma notional for SPI was much more negative. SPI, the low of the day, was right around 434.50. So right around here, we'll just zoom in on this. So a little bit more potential in a more negative gamma position to begin the day. Right now, SPI is trading 439 just under its call wall. So that's right around here, right at the bottom of this curve. So when he put Vanna fuel that was available this morning, at least according to the Vanna model, is gone when SPI is trading at the bottom of the curve. And let's check QQQ. QQQ, the low of the morning, right around 371.50, and QQQ currently trading right around 377. So definitely on this positive gamma portion of the Vanna model, indicating if price continues to increase, market makers will need to sell NQ futures to hedge their delta exposure. All right, let's go back. All right, so based on this, really my thesis for the day was a little bit higher volatility. Not really expecting the rally today, but it looks like the traders were really in the magnificent seven. It's actually a broad-based rally today. Let's just take a look at this heat map in thinkorswim, of course, large cap tech, shown right here, really leading, but a broad-based rally. There's not much red here, a little bit in healthcare, Disney. That's about it. It looks like, excuse me, looks like all sectors are positive. All right, so it looks like to me that traders are just taking advantage of the dip yesterday, buying the dip, maybe seasonal, looking for an end of year rally. All right, so let's take a look at some setups now. So of course, there was only one setup and one gets set up in the SB500, and that was just finding an entry point for a long, and that was right around 1040, 1045. We'll zoom in on this just a little bit. So you can see hero starts to shift higher right around 1020, 1030. ES makes a continues to move lower and then starts to move higher, very timely flow alert here, and that was the launching point for the rally that so far continues. It looks like right now, as Price says, made it up to the SPX call wall and the spy call wall that options traders are starting to take negative delta positions. All right, let's take a look at book map. All right, also, Slydoj Sari says there is Treasury Statement at 2, 2 p.m. We'll watch for that. Let's go back to the SB500, pretty much the same chart pattern as NASDAQ. So what I was looking at this morning was this, first of all, you could see the, let's talk about the volume dots. These are showing market buy minus sell and magenta dots indicate more sellers than buyers, and green volume dots indicate more buyers than sellers. So you can see the buyers start to come in before this trend break. ES breaks above that trend does a retest of the 435 volatility trigger in the 4360 level that was noted as resistance and then continues higher. This rally has been fueled by traders taking positive delta options positions, also aggressive buyers shown by the rising cumulative volume delta, that's the dark blue line, also buy stop orders that's shown by the rising yellow line. And for a while, also large traders with iceberg orders shown by the rising light blue line. They're also on chart indicators showing the iceberg orders and the buy stop orders shown by the green dots there. So a lot of factors in play for the rally today. And right now, ES trading between the SPX4400 call wall and the SPY440 call wall. All right, so that's the SMB500 one setup today. Again, pretty clear in hero as well as book map. All right, let's take a look at NASDAQ. All right, so slow desire does not, I don't see much of an impact from a treasury statement. All right, the order flow in NASDAQ here was a little bit easier to read. Note that before this uptrend began, large traders were buying with iceberg orders that shown by the rising light blue line, also the rising yellow line showing that there were buy stop orders also moving higher. And then right around 1040 aggressive buyers came in that shown by the rising cumulative volume delta. You can also see the shift to all green volume dots. So a good entry point was in Q15350. Good for a 200 point rally so far. All right, let's take a look at and see what options traders are doing. All right, so first of all, for the SMB500, one thing I want to do before I go to the NASDAQ is slice and dice this a little bit. And this may not last long. So you can see that the rising orange line traders started buying calls around 1030. Then just about five minutes after that, they started stop buying puts, start selling puts. The orange line, blue line moving in the same direction. That's a very powerful signal for hero when both lines are moving in the same direction. And that is, again, a very strong indication of a move higher or lower. Now it looks like right around 1210 traders start buying puts. So far the call buyers still in charge. Now they're starting to buy call, sell calls. So we'll see what happens. So now they are buying puts and selling calls starting around 1350, 150. All right, so that's the SMB500. And again, often looking at puts and calls separately adds some additional insight as to what options traders are doing. Take a look at NASDAQ. So NASDAQ, the hero signal, not as clear as the SMB500. Note that traders are buying calls, also buying puts, calls shown by the rising orange line, put shown by the falling blue line. Call buyers more aggressive, really driving price today. And you can see the shift in hero right around 1030, 1040. All right, another very useful signal to look at for the NASDAQ and also the SMB500 is this Magnificent 7. This is a combined signal for these seven stocks known as the Magnificent 7. That's Apple, Amazon, Google, Meta, Microsoft, Nvidia, and Tesla. And you know what I forgot to mention, let's go back to the SMB500. For those of you who may not be familiar with this chart, this is the hero signal hedging impact real-time options available from Spot Gamma. This chart is showing price for SPX. It's also showing the hero signal. Again, hedging impact real-time options. And this chart is showing options trades and market maker hedging activity for a combined signal for SPX, SPY, XSP, and ES futures. All into one combined signal. So it looks like price continues higher. All right, so that is the SP500. Sorry, I forgot to mention that before. I'm looking at the combined signal also NASDAQ. That's a combined signal for NDX and QQQ. And let's go back to the Magnificent 7 now. And again, this is a combined signal for those stocks known as the Magnificent 7. This is a very good signal, very strong indicator of price. Note the turn here. At 10.30, the typical turnaround time. Traders, initially, were taking negative delta positions. They start taking positive delta positions and price moves higher. So they are buying calls and buying puts. Call buyers much more aggressive today and driving price higher. Sorry about that. Nothing I did. As far as I know, Spot Gamma is still working on this issue. All right, so there's the Magnificent 7. And so far today, the typical, well, let's zoom out, zoom in on this chart. So this is fairly typical. Summer between 11, 11am, 1pm, options traders will take their foot off the gas. Price consolidates or moves lower. But that did not last long. Typically, that could be the high of the day. But now, options traders are back at it. Moving price higher. So when traders buy calls, market makers sell the calls and they have to buy stock to hedge their delta exposure. Let's go back to Bookmap. All right, so the uptrend continues. Go to Nasdaq. And then we'll take a look at some stocks. All right, so Nasdaq right at the NDX, 15,500 call wall, trading above the SPX4400 call wall, just below the SPY440 call wall. And so the only call wall that is still a little bit higher up out of range is the QQQ380 call wall. All right, let's take a look at some stocks. I'm going to start with AMD. Let's go take a look at Hero. Start with AMD. Note the call wall. Keygame strike down at 115. That was a call wall breach early in the morning. What happens if price moves above that call wall? All those calls at that level go deeper in the money. So for a stock, Spotgama assumes that traders are long calls, market makers are short calls. And as price increases, they have to sell futures to, they have to sell stock, buy stock, I'm sorry. So for a stock, market makers assume that traders are long calls, market makers are short calls.  All right, so those calls go deeper in the money. So market makers are short those calls at 150. They go deeper in the money, their delta becomes more negative, and they have to, their delta increases, and they have to buy stock to hedge their delta exposure, along with traders buying calls today. Let's show them by the rising orange line. Call buyers definitely driving price higher in AMD today. Let's go take a look at book map again. So there's the 115 call wall. And that did not slow down AMD at all, those call buyers. All right, the next stock, Amazon. So on Amazon, 140 is the key gamma strike, acting as support today. Let's take a look at hero and see what options traders have been doing. Go to Amazon 140, the key gamma strike acted as support this morning. So here's that support, flow alert, pull back another flow alert, and then right around 1045, price starts moving higher, separate outputs and calls again. So call buyers take their foot off the gas, right around 1050, they start buying calls again. Sorry about that. All right, that's Amazon. Next is Microsoft. And you could really pick any of these. And you know, the behavior is pretty similar. Microsoft breached its call wall at 365. Call buyers again in charge, driving price higher, that's shown by the rising orange line. When traders buy calls, market makers sell the calls and they have to buy stock to hedge their delta exposure. Let's go take a look at book map, go to Microsoft. So another call wall breach, 365, the liquidity at that level. That heat map and book map is showing a history of the limit orders in the current order book. Those were limit sell orders, showing at every round number level, more concentrated at the the fives and the zeros. That's Microsoft. Let's go to Netflix. And Netflix, the call wall, is it 440? Let's go take a look at, at hero first, Netflix. Traders buying calls, showing the rising orange line, call wall breach. It looks like in the case of Netflix, there was some consolidation around that level. Call buyers slowed down briefly. Then started buying calls again, price moves higher. Back to book map. So here in the case of Netflix, there was a move higher, consolidation up and down around that level. Check a VWAP and then price continues higher. Let's take a look at Nvidia. All right, GPAN asked, what is the app or website called? Never seen this before. All right, so first of all, the software that I'm looking at is book map. And this is order flow visualization. And then the website that I've been looking at is spot gamma. Go to spotgamma.com for more information. And that is what's showing what options traders are doing. So that spot gamma is what I use for my preparation in the morning, as well as this looking at at real time options trades and market maker hedging activity. So another bullish day in Nvidia. Let's see what options traders are doing. So right now, Nvidia, the call wall at 480, it looks like that call wall did act as resistance. And now Nvidia is trading above that level, acting as resistance a couple of times. That's this light blue line here. Then as support, we'll go take a look at and book map and see that more closely. And again, traders are buying calls. They're actually also selling puts that show them while the rising blue line and the positive notional value. All right, so GPAN, just go to spotgamma.com for more information. All right, let's take a look at book map and video. Here's the call wall, resistance, resistance, and support. Price continues higher. Let's see what's happening in Tesla. Tesla's been beaten down pretty bad lately. Let's see if the dip buyers are in Tesla. Yeah, it looks like they are. Note all the green volume dots. A lot of aggressive buyers buy minus sell. Let's see what options traders are doing in Tesla. Note the call wall up above for Tesla at 220. Note the shift in hero signal. Just before 1030, aggressive traders stop taking negative delta positions and shift start aggressively taking positive delta positions. Let's just get a closer look and see what they're doing. So really, this was driven.  So in this case, when they stopped buying puts and continued to buy calls or resumed buying calls, price moved higher. And that was also in conjunction with all the aggressive buyers that was shown in Bookmap. Let's just take a look. We can take a look at cumulative volume delta for Tesla here. No, just a steady uptrend of cumulative volume delta. A lot of traders buying the dip in Tesla. All right, Sam asks, how do lagging indicators impact a trade? I'm not sure. I don't know what indicator you're talking about. I'm talking about the indicators that I'm talking about. First of all, here in Bookmap, I'm just looking at order flow. So I'm looking at what aggressive buyers and sellers are doing. And in the case of futures here, I'm looking at order flow as well, looking at the volume dots. I'm also looking at what traders are actually doing. I'm looking at what large traders are doing with iceberg orders to hide their size, kill it to volume delta is showing again the volume delta for the day. And then the rising yellow line is showing stop orders. In this case, buy stop orders, fueling the move higher. And so I can see that right now, stop orders, cumulative volume delta have leveled off. And there's some aggressive sellers starting to come in. I see more pink dots. And that's at the 440 call wall. And again, large traders starting to sell this with iceberg orders. So this is not your MACD or stochastic or anything like this. This is actually showing what traders are doing in real time in order flow here in Bookmap. And then let's go to hero. Let's go back to the S&B 500. All right. So in the S&B 500, this is just showing me what options traders are doing. Right now, they're starting to take negative delta positions. And that is really to be expected at a level that I expect to act as resistance, like a call wall. All right. So none of this is lagging indicators. And it's up to the trader to interpret. This is what I do. I interpret what I see in Bookmap and what I see in hero to develop a thesis and a narrative and then to set up a trade. And also, what is a good way to engage the impact of a put wall? I'm not sure I understand that question as well. First of all, put walls are well out of play today, not in play at all, but a put wall is expected to act as support. And Spot Gamma has some statistics that are available about put walls and call walls that are available to Spot Gamma subscribers. And typically, let's say the results for a call wall show after the S&B 500 for an index, the four one day and five day returns after a call wall touch or breach are negative. But that's just their statistics. All right. So Sam, I hope that answers your question. Let's go back to Bookmap. All right. So maybe some afternoon consolidation. Let's take a look at NASDAQ. All right. I think I've looked at almost every stock in my watch list. NASDAQ still trading around the 15,500 call wall, trying to move higher. Remember the QQQ call wall is really the only call wall that's up above of the NASDAQ and the S&B 500. All right. So overall, hero indicator, starting to move a little bit lower. But so far today, the call buyers have definitely been in charge. All right. My time is up. I want to thank everyone for watching. Thank you for your questions and comments. Sam, you're welcome. All right. So Sam, any further questions, please contact me in Discord. My name in Discord is Doug P. I'll be glad to answer any further questions there. Or if you join Bookmap Discord, I can answer questions in the options dash Doug Chat channel. All right. So again, everyone, thank you for watching. Thank you for your questions and comments. Have a great weekend and I will see you on Monday. Thanks. Bye.