Unveil Hidden Flows in Real Time: Super HIRO Deep Dive | SpotGamma

0:02 Cool. There. >> All right. I think we are live. What's up everybody? This is a new uh this is kind of like a new dynamic for me. Introducing uh my good friend here JT, one of our incredible He calls himself options educator as Gamma, but I think that is underplaying it. He's the He's the man around here. Uh certainly has a much more masculine beard than I do. So kudos to you for that JT. Uh but we are here today to do a deep dive into hero and then JT is going to be back tomorrow to talk about our options calculator. Both of these are new functions here at Spotgam. And if you go to spotgam.comhidden-forces, you can join the openhouse and you can play with all the tools that JT is going to talk about here today. And so uh not only does JT have a much more masculine beard, he also explains things oftentimes in a much much more uh

0:48 understandable way. And so I'm excited to listen to what he has to say here. I hope you are too. At this point, if you have any questions, you can hit us up infogam.com. But JT, I'm going to turn over to you. Thanks so much for doing that today. and I'm excited to hear the presentation. >> Appreciate it. Appreciate it. Thank you. Make sure we're live here in YouTube. Looks like we're good. Looks like we are good. Yeah. Cool. Um, so in today's presentation, we're going to be going over really kind of a deep dive. Um, and what we're talking about here with the deep dive in general is we're talking about HERO. Um, and if you've if you click the link or if you've been here before, you know what HERO is. It stands for hedging impact of real time options. And we'll get into exactly what we're looking at there. Um,

1:34 but first off, I really want to sit here on this image for a second here. This image is fantastic. This is done by one of the members of our team, one of the new members. She's amazing. I love this image so much. Um, so I just want to give a little shout out for that one. Um, kind of as we're going here, um, we're kind of going to unveil some of these, but it is a deep dive. So, when we're talking here, um, this is going to be some indepth material. If you're new to options, you'll be able to keep up for a large part, but this is going to be intense material, and that's kind of what the the goal is here. Uh, this is directly based on your guys' feedback. These are the things you guys kind of wanted to know about and kind of wanted to get into. Um, and if you're in our Discord community, you've seen these kinds of questions and the topics that

2:20 I'm going to be talking about today. Um, you can pause here if you want for our risk disclosures. And we're good. Okay. I love risk. Um, so what are we covering today? We're covering why options actually impact your trading. Now, this is kind of a a broad topic in general, but really we're going to focus kind of on how we can really see that. And that means we're going to get into the nitty-gritty of the zero DTE, the low-term gamma or short-term gamma um and kind of how those hedging influences go. And then kind of um segueing into that is how those hedging influences can help you um with trading and how they can show you perspective options impact and then some of the key capabilities of upgraded

3:05 hero. So this is where you guys will break out from here, right? So, I'll have shown you all the things that I do typically, but as you well know, probably, especially if you're in the Discord, customizability is something that people are really, really starting to delve into here. Um, you'll see my charts are slightly different than the default charts. Um, and I found something that I like and as soon as I found something that I like, I watched somebody in the Discord pull up something that was even better. So, um, there's going to be a lot of iteration on this, and that's kind of the point here is we're giving you the tools to kind of get into some of that iteration, and then we'll go into some of the nuances that I look for specifically. This is also going to tie back into the options impact. Um, and then as always, we're just going to have questions and uh, Q&A. So, if you ask a bunch of questions, I'm going to try and get to

3:52 it on the answers and do the absolute best I can there, right? Um, so kind of going into this, we call this position analysis. So you have your fundamental analysis. Those are your macro guys looking at, you know, the pluses and takeaways in PE and in supply chain numbers. And then you have your technical analysis. That's your golden crosses and your EMAs and everything else. Both have been successful for different reasons. Right here at Spock Gamble, we've kind of isolated something that we believe is incredibly valuable and it's where the options positions are and we call it position analysis. Um and from there from understanding the options positions um it's always been very impactful. However, that impact has only gained volume especially since the

4:38 COVID era. As you can see here from 2020 to 2025 we increased options market volume 150%. Now stock volume increased 30%. So it's definitely no slouch at all but it absolutely is being dwarfed by options volume. Now we know because of options volume the um and the CBOE saying hey the bulk of zero DTE options are closed before expiring. We know that a lot of those hedging impacts come in and go out in a single day in a time where gamma is most magnified. So this becomes a very very important kind of topic. We're going to go back and forth on this slide and the next slide as we're talking about this. So what

5:23 happens is is you buy a call option, right? It doesn't matter where you buy it. You buy it at the money, out of the money, deep in the money, you can buy it. You might have to pay a little more or pay a little less, but you have to buy it, right? Or they have to they have to sell it to you. Excuse me. The market maker would have to sell it. So if they're selling an option and you're buying an option, all of a sudden they have risk. They have risk that they didn't necessarily want. they don't have any value in this option that you uh in selling this option to you and maybe let's say it's a losing option. Let's just assume it's a losing option. Why would they want to take this, right? Well, the reason they take this is because they don't care about the P&L of the option. They instead change their risk from the P&L of the option and they change their risk to the spread, the bid

6:10 and the ask spread. As long as they're within that, they can value the option and have enough money to to essentially make a profit. And that's their business. Their business is not making money off of our options. They don't care. Now, discretionary and stuff like that, they'll absolutely do some of those things, but in general, they don't care about the actual position in and where the option expires as much as they care about how they hedge the position. So, let's kind of get into what hedging is. Now, we talked about that long call here, and you can see what a long call looks like, right? So, we buy this option, right? We've paid some money for it. Let's say we paid zero dollars for it. In fact, let's just put it on the Let's just put this on the price line here. It's zero dollars. Uh, and we

6:58 bought an option that's at the money, right? So now we know that if this option increases at all or if the price increases of the asset, this option is going to go in the money, right? It's going to be no longer at the money. Stock increased is now in the money. It now has an intrinsic value, right? And you can see in this intrinsic value here that the amount that you gain as you increase in spot is going to start decreasing, right? For every step you get a little bit less, a little bit less, a little bit less, a little bit less, right? And it starts flatlining. Now, if you've traded options a lot, this is this is kind of obvious, right? Your delta here has increased from 50 to 60 to 75 to 90. And going

7:45 from 90 to 95, it takes a lot more. It takes a lot more time to pass. It takes a lot more move in the price. So this option, it's changing value while it's still increasing, does still have a requirement from the market maker. While your option is now 70 delta, they're now short or long 70 shares or actually short 70 shares here, right? No, long the option. So they're long stock, excuse me. They'll be long the shares here, right? So in this case, they need to continue buying um buying shares as the asset price increases, right? So as stock increases from this point right here, let's say this is, you know, $101. Let's say it

8:30 needs to go a little further to $102. Now there's 75 shares that they have. Well, the options were 77. So they're short to delta essentially. So they need to buy another two shares, right? And so we can see this kind of work through this. Um, so they're chasing. So as price is increasing, as price is buying, they're chasing the price, right? Every time price goes up a delta, they got to buy a delta. It goes up a delta, they got to buy a delta. Now this, we know if you're a trace, if you've used alpha and trace, we know this as negative gamma, right? We would see this in the chart as a giant point of negative gamma. So you'd have your strike bar right here and you'd have a negative gamma point here. Now what do you expect in negative gamma if you're spot gamma member here

9:16 with realized volatility? You expect realized volatility to increase. How does realized volatility increase? Well, if every time the market is buying, the market maker is also buying. We have two people buying. So right, we're increasing the amount of volume. We're increasing the amount of realized volatility. Right? So this is how we get that negative gamma. So a long trader option becomes negative gain. Now we can turn around and flip this the exact same way. Right? So let's make it purple because purple is beautiful. And let's going to make we're going to make it a short call option instead. Right now at the money and as we're here we expect one thing right as they're hedging. So as price is increasing as

10:01 the market is buying market makers are selling. They're selling. They're selling. they're selling, they're compressing that realized volatility. Right? Now, this is a slide where we kind of talk about this in more detail. Right? So, the market maker has 100,000 calls and they're at this 50 delta, they have to buy 5 million shares. And then when it moves that one delta, they now need to buy another 100,000 shares. Right? So you can see in that negative gamma aspect in that first example we're exacerbating realized volatility. Market moves up they got to move out more. Market moves up again they got to move up more. They're chasing constantly right whereas in the reverse in the short call example that we drew and

10:47 let's see in the short call example that we drew here right instead of them B or buying as we're reaching that point it's a positive gamma inflection. So in trace you would see positive gamma and what do we recognize that positive gamma or especially a large amount of positive gamma we expect price to do this kind of compression thing right kind of sideways like it might break through but it's going to take some time and we can see this observably you can see this in your chart every single day on these levels and I'll show you how. So now that you know that as we get to those levels, we expect price to do certain things. Well, if we expect price to do certain things,

11:34 if we know that there's friction there on the market maker point, right? Because he's having to hedge a bunch there, right? So there's friction. He's having to do more work than he necessarily wants to do. Who wants to do a lot of work? Do less work with less less options, right? So what they want to do is they will price the surface slightly differently. And that price change that supply and demand dynamic induces more buying and selling. And we can see this directly in hero itself. Now here is a picture of hero and this is the put call or puts and call line. So orange is calls and blue is puts. Now you can see that for the most part early on both puts and calls were accelerating right?

12:19 They were both in the positive direction. But once we got to about this point in time, now you can recognize here puts are mostly sideways arguably, right? Like they didn't decrease in the amount of delta. They were at essentially like 1.7 billion, 1.1 billion, excuse me, and then dropped down to 1 billion, right? So not a major decrease. Now calls on the other hand that marketkedly moved down and we can clearly see a bigger shift here. So if you're looking at this chart, what would you what would you infer? Calls are currently leading price. So calls at these levels are really what I want to be watching. Puts while they're

13:05 supportive, um they're not really the the driving force in this particular area of the market and at this particular time. Now, this is looking at the S&P equities ticker in the uh in the new hero. So, you can change this to whichever one you want. You can change it to equities or 500. Um, switching between both will give you a picture of dispersion. It will show you are people buying and selling indices, are they buying and selling equities? And a lot of times you'll see one or the other. So if one goes flat on both puts and calls, you can watch the other to essentially see if maybe indices, options volumes are picking up, right? So this shows you a lot of what you can infer being at these levels. Hey, what do I expect price to do? I expect maybe more call

13:53 selling, more short delta to be coming into this market. I expect realized compression of volatility. Now, this is the new chart with all of this extra stuff. So you can see a lot more here with a bunch of different indicators. So you'll see on my chart when we pop in, I have a 9 EMA that's just running on price right now. Um and then you'll also see that there's a full suite of changes here. So if you're a fib user or um a bunch of the different indicators, so CAMS I believe are in there. If you're a MACD or support and resistance, there's a bunch of indicators in there that you will be able to look at and you can manage those right here. As well as lines, so you can use the line tool.

14:38 This is a major feature that people requested is to be able to see these kind of lines, right? Draw a line, draw array, and you know where this level is and be able to match where that is. Right? Now, in addition to that, you can see not just the longer term expiry here. It's currently turned off. We are all expiry, not just the zero DTE. Toggling that will allow enable you to look at just zero DTE. Now, over here on the right, you'll see a rolling window. Now, in general, I would recommend that you never change this setting. It should always be at 1D. If you do make changes and you're getting into shorter time frames, um, four hours can be interesting. But what you're doing is

15:23 instead of looking back over the course of the whole day of hero, you're looking back at whatever that window is. So if you're looking at four hours, you know, it might be here for instance. Obviously, it's not, but you get the point, right? So you're only looking at this amount of change in hero. So your hero vows will change dramatically. Now this could be impactful if you want to try to isolate specific things. If you want to only look at, let's say today, for example, right, we've got the FOMC. Well, this morning's activity was probably kind of pointless to some people. So maybe you don't necessarily want that early morning context and you only want to look at the most recent four hours. So you can shift your rolling window to that. Those are good examples of when you could do this. Other than that,

16:09 general rule of thumb, never change that button. Now, as we kind of look into examples here, you'll notice that we have both an interaction with hero trading view as well as our total OI model. Now, this is different than our synthetic OI model as it's using the um legacy levels. This is highlighting that still these legacy levels are incredibly impactful on these things. We can still see that these positions that are monstrous in size that the market makers aren't necessarily like holding inventory on right now, somebody still holds the inventory and they still hedge these areas and they're still hedged pretty aggressively to some degree. And we can see that at these levels a lot of

16:54 times we get very clear signs of behavior that help us potentially um trade this level. Now, in a call wall situation, one of the best trades that you can do if you're already long stock, so you're long stock here, is sell calls at this level. And this is essentially putting yourself into a covered call stance. If you're not long stock, so you don't have that long asset, um your one of your better trades is essentially a call spread. So, you would be um basically short a call, right? A short a call spread. So, you'd have a a short call and a long call. you might want to put it slightly out of the money here. So for this particular example, if you know the call walls here, right, and you have this significant impact of gamma,

17:43 once you reach this level at this point in time, let's undo that one. Once you reach this level at this point in time, the option surface has an expected probability, right? There's a probability that 20 delta is somewhere up here and 20 delta puts are somewhere down here, right? You can sell this out of the money call spread at a call wall and it provides a very strong opportunity to potentially grind into it, get a lot of profit overall. There's a good opportunity there in general. And you can see that again this call wall, you get this kind of compressed realized volatility upward price action is absolutely moving towards it. But you

18:28 don't want to buy an option here and just let it decay, right? Because that's what's going to happen. Time's going to decay. You need to exceed that option or you're trying to look at premium. So understanding realized volatility there can really, really help you. So kind of going into ZDT in case you didn't understand those concepts, uh zt is just zero days to expiration just referring to the expiry that the options are. Oftent times you'll hear traders say they're trading Apple in the zero DTE and it's a Wednesday. They just mean they're in the weekly. It is the nearest term option. Um so in those cases just just understand it. It's not always that they're super hyper specific that they'll be in the weekly. Just make the affordance there. Um these expire

19:14 incredibly quickly, right? We know that gamma essentially gets maximized in that really short time frame. If you guys have ever seen that image that we have, right? So this is your expiry of time. This is time right here. In this near term, you get a really big peak in gamma. And that gamma is really what shows up on trace, right? So let's pop over to trace and we can pull up and we'll just see where some gamma is real quick. Click on the button. So we can see right here there's a large pocket of overall positive gamma. Let's kind of zoom into just this area right here. And we can see that it's incredibly positive. Right now, market is currently below this. So, that red gamma isn't necessarily

20:00 affecting us. Now, if you're here, we have this essentially this um long put spread here from traders. So, short uh credit spread for dealers, long put spread by traders essentially is what they're worked into. Now we can see that this causes a long large inflection of positive gamma and then we have that inflection reflected right here. We can clearly see that kind of stuff. So when you're talking about these kind of gamma levels and this large size of gamma, this is what we're influencing. This is what we're talking about. Now in this particular case, you can see at positive gamma here, we've really consolidated. It's really been that um dampened realized volatility that we kind of expect at positive gamma. But also realize that today's a event, right?

20:47 Today is an FOMC event. We're expecting according to the market um one uh one rate cut today and we'll get a meeting um in about an hour and a half, no two hours, we'll get a press conference. So obviously V's still staying bid. So it's not necessarily that realized volatility is compressing today. It's the vault surface as well. But we would expect similar behavior. And we can kind of see that if we just pop over to yesterday for kind of these hedging impacts. And you can see if we go yesterday kind of middle of the day, you can see as we got to this upper end of this iron condor, the lower end here was just basically completely exhausted. Had no value. But we just churned on this positive gamma. And that's that's what we're expecting. That's exactly what we're expecting. And

21:33 that's what you're able to look at. Now, you can notice here that uh hero is increasing the entire day, but it's really struggling in this middle part, right? Like we very very barely broke out of it. That's what we expect in positive gambling. We have to overwhelm the level with volume. We expect to have to exceed it. So, you need a lot of buying volume. So, if you're a level two trader, you're looking for that in order to break out, right? A lot of times though, we see that it potentially fades back. So, we're looking for a reversal or an exhaustion afterwards. So, if you're a volume trader, if you use any of those aspects, these are the kind of aspects that you're looking into and how you can integrate those into your flow. Now, looking at hero today, if I remember

22:19 correctly, we had a data vendor outage earlier today as well. Um, looks like it's been repaired, though. Cool. Oh, nope. There it is. So, we can see it kind of right here, right? So this is an artifact of when you know there's a problem. Okay, in this particular case, the problem was a data vendor outage, right? So you just get essentially a flat line, right? Not a line that is basically not changing, but a truly flat line. This is something that you can see, hey, this is an artifact. This is an issue. What's going on here? Right? So it's a great way to see something that kind of happens intraday. We don't get a lot of examples like this. Our data vendors are usually pretty good. Um, but I wanted to call it out just in case because we don't get a lot of examples. So, it's good to get it on video. Now, you'll notice here, this is

23:04 the way I typically use Hero. I'm gonna close the sidebar. I almost never use that now. I like more screen um especially for some of the newer stuff. And what you'll notice here is I've moved my candles below. Let me clear these out. I've moved my candles below. And I actually basically sit around this kind of picture for my hero with this being equities and this being um whatever the hero indicator is or swapping them. Um and that's something that I saw from a new user within um that's something I saw with a new user within Discord. Uh Michelle, yes, it doesn't matter whether it was Delta. I was looking at the strike bars. Doesn't matter what chart it is. I'm looking here, right? So, if I'm looking

23:50 here, like we could just swap it over to gamma. You're going to see the positive gamma here. Sorry. Probably wasn't as as easy to see there. For me, I the the heat map is fantastic. Um I'm I'm very happy that we have it, but for me, this is the heat map right here. This this strike bar chart. I visualize this as just the heat map. Um and you'll get there, too. It's just a lot of practice. That's all it is. So, but yes, good call out. It is positive gamma right here. That's what you're looking at. Um so kind of going back into hero real quick. Um looking at some of these. Let's go ahead and turn on key levels here and alerts. So you'll notice here that you have key levels on the

24:39 y ais here. So if you zoom out, you'll see different levels. So we see the closing levels, the put wall. Um, should be a call wall up here, right? Call wall of 500. So you can see all of these elements. Let's go ahead and go full screen here. And option R will reset our preferences. So there we go. So now we can see that. Now it's going to go ahead and load some of these other issues. Looks like we're having an issue here loading. Go ahead and refresh the page. So one of the other things that we can also do with hero is we can utilize tape. Um so we talked about some of the

25:24 reversals some of these let's get into tape. So this is one of the areas that a lot of individuals they like to utilize flow like they they follow Cheddar flow or unusual flows or unusual whales or whatever, right? And they follow all these different flow services um and they see these these tweets, right? You know, they come out at the end of the day like, you know, so and so bought five gazillion shares of or five gazillion option contracts at 6,000 strike uh puts in S&P. Like the market's going to crash, like that kind of stuff, right? Well, you can see this stuff and you can see it just within our tape here. And not only can you do that, you can actually see the influence of the trade on price by looking at hero. So, as you change your filter on your zoom,

26:11 so as you zoom in more, and we'll show this in a second in this time frame, this time window will shift to just that, right? So, why are we not working here? There we go. Cool. Um, let's clear these out. So, let's look for a bulk trade. Look, here we go. Here's a big one right here. So, right about this point right here, we can see that there was a large overall trade. We can see that it made a uh pretty decent size impact in the in the put chart right there for the equities as a whole. So, let's see if it had anything to do with Nvidia. And as we look in a little bit, we can zoom in. You'll notice tape down here gets filtered. And we can see that in this particular case, um, 1144,

26:58 nope, doesn't look like anything in our case actually has anything to do with Nvidia. So, let's go to equities in general, and we can see if we can find out where it is. So, now we don't necessarily know where it's at. We're going to go searching for it. So, it's right here about this time frame, I believe. No, it was right here. Sorry. 11:13. You can zoom your chart in and you should be able to find that contract. Now, today's data because of that vendor outage, it looks like it's having an issue down here, but you would be able to see it right down here in tape and you'll be able to see that. You'll see all the contracts and everything else, but for whatever reason, we're having that issue right there. Um, so we're not able to see that one. So, this is one

27:46 way that you can kind of leverage hero and tape. You can look into these. You can see these. And then also in addition to that, you have the flow patrol. So if this position is going to be lasting or it's going to actually sit on the market makers books, it's going to come out in tomorrow's report and you're going to see it right there. So let's say we were looking at Eli Liy or Tesla in this case, you would see exactly that, right? You would see um Tesla and then you know, however many puts and you'd see it there. So, one way that we've seen Luke and some of the guys in Unusual Flows use the use the chart is that they actually do look at exactly those concepts, right? They're looking, okay, like this is a massive trade right here at 12:02. Um, they zoom in, they'll find it, they'll be like, okay, 12:02, it's

28:31 somewhere around here. There it is right there. So, 1,200 essential um 207 strike calls were sold right now. Were they actually sold or bought? Well, let's look out, right? Okay, we expect a short call to do what to the market? We expect it to push it down because it's negative delta. So, what happened? Did we get price action in the downside? We did. So, that 1,200 we would expect to be able to show up at that strike if it's held uh through the expiry, right? And that's an easy way you can tell if the option and actual flow is mattering, right? If you're getting the flow, the direction, and you see the thing. Now, one of the members who also uses some of these elements is um he looks at hero with both not just the indicators up

29:18 here. So, he'll use let's say the total for these here, but he'll put the equities below. And this allows him to see the difference in those two there. That's great as well. Now, if you're a user who wants to add, let's say, an EMA onto a call, right? So, let's say you want to go to let's say you want to look at Google's calls and you want to look at a 9 EMA on it because I've got a 9 EMA on there right now. Right? So, you'd have this 9 EMA right right here. Let's go ahead and delete this and we'll go ahead and read it in a second. So, this is Google's calls. You can see them right there. They're kind of going up. Um, now this is Google's calls even though it's a price chart. So, that can kind of be confusing to people. So, be aware of that. For this, we're going to go ahead and turn off the overall indicators just to alleviate some of

30:05 that confusion um because we're just showing call values here. So, let's add an indicator or an EMA on this specific value. So, it's going to be moving average, right? And then you're going to go to exponential. Okay. So, once you see that, it popped up here. Now, you'll notice the settings dialogue didn't go away. It did add it properly. There's no issues there. Now you'll have your length, it's nine. Um your sources, whatever it's going to be. So it's going to be the open, the high, the low, the close. It's going to be any one of the pieces. Um those are trading view specific. Generally speaking, for moving averages and exponential moving averages, you use the close, right? Because it's looking at the close of the candle. Um and then the rest of this I would typically leave um the same. I would not mess with any of those because they are the defaults. So, what this

30:52 does now is you have a 9 period EMA on the Google calls. Okay? So, you're watching the Google calls and you have the 9 EMA on it. Actually, it didn't actually pull it up. So, let's go. Bam. There. Now, the 9 EMA on the Google calls. It actually pulled it up now. Um, so is this useful? Yes, it can be. It's showing you, do you expect calls to increase or decrease? Now, there's some issues here. In order to have a moving average on a data series, that data series needs to be the main data series. So, if you want on calls, you need to do it here. But if I wanted to see a 9 EMA on Google's price, I would have to

31:38 select Google's price. If I want to see it on Microsoft's calls, I would need to select Microsoft's calls, right? And this would show me Microsoft's calls. and then it would put a 9 EMA on that. Okay. Now, there's some limitations here when you're talking about EMAs in this aspect. Okay. And this is dealing with hero. Okay. So, this is kind of going into um the the understanding of what hero is. So, at the start of every day, hero starts at zero delta. The hedging impact of real-time options at the start of every day is zero, right? No. No options have traded. So we don't have any hedging impact, right? So every day this starts over. Now this will cause

32:24 conflict if you're not understanding it and you have a large discontinuous data series. Okay, so let's go to let's find one real quick. What's something that had a pop? Let's see. Something had a pop yesterday. Did anybody have a pop yesterday? No. Open AI did. No. So yeah, here we go. There was a pop yesterday and we can see kind of how some of this faded. Now you can see if we turn on the indicators here and let's go ahead and get rid of this lower pane. Remove and remove just so we can see this a little bit better. You can see right here this sharp drop

33:11 in the values. And what this is showing you is this is showing you that at the end of the day we went from, you know, 1.5 billion calls in Nvidia yesterday to zero because we're starting at zero. Now, there's a limitation here with Trading View. If it starts the day, it's going to use the previous nine period bars, right? So, you're going to get a different reflection. So you need to make sure that whatever you're looking for is taking that into account. So there's some limitations here with that kind of concept. You can't use something like a 50 EMA on a five minute candle chart, right? Because we don't have 50 times five in data points in the chart for you to do, right? And you don't want

33:56 to do that with hero because again it restarts at zero. So you need enough data points in it. So you can go through a couple of the other things. If you're going to look at EMAs, I recommend you get into some of the more secoriented or at least in the one minute. Okay? If you're going to be looking at exponentials because your time is so narrow. So basically a discontinuous time series here and that's kind of what you're looking at. Um now for some people that might be a misnomer because all these time series spx in general is discontinuous, right? because it ends at you know a certain time and then starts at a certain time. That is a time gap. Now in this point there's no trading that's effectively involved in this period right here essentially air

34:43 quotes. Um so it's not discontinuous there. It's just there's a there's a gap essentially in the time and all time series do is they just merge the two as if it were um continuous. If we had 24-hour trading, this would have a continuous bar. Even if there was no trading, you would still see it open and close at specific times. So, it is discontinuous in that element. But, we don't consider it that way because there's no open market. What we're talking about for the discontinuity is this change in that y value. All of the delta from yesterday is no more at the start of today. All of the delta we did today is not going to matter when we start tomorrow. So pay attention when you're looking at those. So now let's go over hero flow alerts,

35:31 right? So you can take a look at so we did key levels. Um flow alerts here. You'll notice that they've changed. So instead of being just a dot on the old style chart, it is a line. Okay. Now you'll notice at the start of most days, you will see a flow alert kind of trigger where we're kind of going in a general direction. The way flow alerts are meant to be, it's think of it as a sentiment indicator. Okay? If we have one flow alert, we have been going in one direction for the entire day. So if the market is going up and puts and calls are going up and hero got that one flow alert, guess what we have done? We have gone up and right. Right? So all we've done is gone up and right. So there is no flow alert to the downside.

36:18 Now, if we've stagnated and we haven't gone anywhere and we've oscillated a lot of times, what you'll see is multiple flow alerts. You might see one alert um let's say that the flow alert was like up here, right? Like you might see like two or three flow alerts all around here. Now, what is that indicating? Well, it's indicating exactly what you think it is, right? If the flow alert changes every time we're basically like going from a positive sentiment to a negative sentiment or vice versa and it's constantly changing, what is it saying? we're not doing anything and we're consolidating around a zero point essentially, right? That should kind of make sense. So, a lot of flow alerts indicate to you that likely there's not a lot of price movement or that there's a lot of reversion around price movement. Now, how you trade that is up

37:04 to you. Are you a reversion trader? Are you looking at the gamma lines from EquityHub and looking at this line in particular as a as a point to revert to? Right? So every time we got to this level, you were looking to short back to this level. Is that your trading style? Then this particular thing might be of interest to you. Where are you going to look for these things? You're going to look for them again at those large gamma levels, right? You're still going to look at those areas. Um regarding hero initial setup, so it's going to look just default. So it's basically going to look like this except candles. Um, I just removed those, changed it, added a sub pane. um basically like you've just seen it, right? So if you want to add this in general, you can do the same thing. Right? So let's let's make a subchart real quick here. Uh and

37:50 let's add Nvidia calls below. Right? Now, do we want to add next or total? Let's add next. Let's add next because we haven't done next. So we're going to do it in a new pane. And a new pane is going to put it below. Right? So we've got calls there. But if we got calls, why don't we just have there's no reason not to. Um so let's go ahead and look at it there. Now you'll do a new pane again. Sometimes you don't need to. You could just do the same one and then move it. At some point you got to move it anyway. So I just do it that way. And then you just move it down, right? And that's how you can do that. Now this is just a time series just like all trading view and just like all the other things. You just change this to candles if you want candles. Right now for me, I don't like my candles the same colors and I like the puts and the

38:37 calls, the orange and the blue. Like I really like that kind of element. It helps me see things. Also, my chart's a little too white. Like you guys know me, I like white, but like this is a little little too much. So, we can kind of change some of this. So, let's go here. We're in canvas. We're going to change this. Let's make it a Yeah, let's make it a softer gray. Uh, it's a little too gray. Let's get a little bit more white. Cool. I like that. We're going to go with that also because the hex color was dead dead. So, it was kind of cool hex color. So, this is how you can change your background, right? You can change a couple of other things here, right? You can change just the normal default candles. You can change just kind of some of the basic things here as well as some of the way the symbols work over here and how you can see some of those elements. Um, this is mostly for your chart as well. Um, you can use grid

39:23 lines. I have very very faint grid lines because I usually use the time element down at the bottom, but there's a lot of people I know that have larger um timelines. And then some people they like the watermark there. Um, for me, I don't particularly have the watermark. I just typically always look here. And on my other TV chart, I have the watermark. So, that's kind of the way I look at that. So, this gets you calls and puts down here. Let's go ahead and get rid of tape for a second here. And now you can see kind of how we're looking at these calls and puts, right? But it's really hard to tell what these are. Remember how I said like the default the default colors aren't going to help you at all. So, you kind of want to change these. So again, I just go in and I like to keep the colors the same because it makes it easier for me to see what I'm doing. Um, so I just go in here and I just find the buttons that I like.

40:11 Um, and then for the most part that's that's worked pretty well. Um, so these are puts, right? So borders I want borders a little darker personally. Uh, up and down. Actually down body is a little too Let's go like this. Yeah, I kind of like that. Yeah. Cool. And then I like a dark wick, right? So now you've seen basically how I just kind of set up my chart, right? And this is this is the put line right here that we just did, right? And you can change this any way you want, right? So let's make this a little bigger so you can kind of see what it looks like. Now I'm using a MacBook to to stream my screen. If you got a 27 inch monitor, obviously you might want to like zoom around a bit, but you can see the visual

40:57 difference here and some of the clarity that you can get. For me, I like borders. I like wicks. I like changes in color. And I like transparency. This allows me to constantly look. And when I have overlaps, like this one right here, I can see it very clearly, right? So, this kind of helps when you're looking at these kind of elements. So, that's kind of like how you change some of the settings here that are going to be really kind of favorites for the most part. Um, and how I look at it. Everybody is different, right? I'm still iterating on this and I will definitely keep my my settings available or whatever I'm currently using within the Discord. So, if you have any questions, just let us know. Um, but there's a lot here that you can do. So, we looked at moving averages. We looked at um those. You can also do Ballinger bands if you're a Ballinger band trader. Um, I

41:45 knew a friend. He's currently looking at Ballinger bands on um calls and puts on on the total signal itself. Um, he's really interested in that. So, good luck for that. I hope he finds something and I can use it. Um, I appreciate his hard work there. MACD is another one that I have a friend that really really likes. So, stock volume being lower is notional analysis. Volume being lower is is just it's just stock volume in general. That that would be part of fundamental analysis technically um because it is a fundamental number just for that question. Um, and then you guys can also just start shooting questions. if you guys want to take a look at stuff or if you have other questions that I haven't seen. So, with tape kind of being a little wonky, it's kind of hard to show

42:30 that one. Um, but basically like we saw with the Nvidia example, right? You want to zoom in on the chart, you want to look at it, and then you want to isolate it. And then for me, like I said, that that research comes in tomorrow. I'm going to check on it. I want to see is this position building. So I'll look at flow report for multiple days and I'll see hey you know this this um 200 strike is really interesting for whatever reason and it's been interesting for multiple days and the positions have been growing. Um so not only can I see it in open interest but I can also see in the flow report. So there's a lot there that you can look at as well. Um just absolutely fantastic ways to look at it though. Let's not do that real quick. Let's go back up here. Let's take a look at just a couple of tickers and see if we can find anything interesting

43:17 to kind of go into some of this. There's a big jump. Well, Eli Liy's messed up. Let's go to Microsoft. No, we did Microsoft. What's some tickers people are interested in? Um, MU is a big one. We were talking about MU. Me and Brent before the show here. Let's get rid of the pain down here because we don't need it anymore. And we're just using this Are there custom indicators that will work with the hero chart? No. So, anything that you need pine script to basically install, you're not going to be able to do. Um, and the other limitation is it wouldn't work anyway, right? Because in well, they would work on price, but they wouldn't work on hero because again that discontinuous time series, right? So, a lot of those types

44:04 of things aren't going to be necessarily useful in those aspects. However, this migration has actually kind of been interesting. Um, I've been thinking about looking at hero as more like a tick chart in general. Um, and then being able to isolate some of the elements around that. So, and that's come from a lot of people's feedback is like how they want to look at it. We're able to see some of the friction so we can kind of take a look at some of those elements. But in general, there's there's a lot of indicators here, but no, anything that requires essentially Pine Script or a different time frame from what you're currently visualizing on your chart, that's not going to be available right now. Um, however, if there's major indicators, that's something we're also looking at just adding, right? We we clearly wrote three

44:50 indicators for this particular um launch event, so we're absolutely looking for some of those. Um, and then I think somebody said Alo. Somebody's a little Olo fan, huh? How has Alo been doing? So, key gamma is 140 today. Let's take a look at the equity hub real quick. See if there's anything interesting there. Oo, large positive gamma in general. It's pretty solid. So, last close was 132. So, this is u essentially alternating staggered strike pattern. So, if you follow the equity hub, we've kind of talked about this pattern before. So you expect a little bit of chop, but once you get above this, you would expect pretty good movement until about this level right here. So 138, 139, somewhere around this range, you

45:35 would expect on the top end some of that realized volatility kind of switching directions. And let's go up to hero now on the new chart and taking a look at it. Yeah, absolutely, John. No problem, man. Um, and then you can kind of see what we're looking at here, right? So that 3839 level, we did get some resistance, but you can see the call volume we got here was just absolutely monstrous. This has been kind of a a trend with a like it's it's been moving pretty monstrously. Um, and these are two major trades. So again, we can kind of use tape here, kind of dig into that. So let's go. What is that about 1020? So let's just kind of go into that chart real quick. And I know if you have like vertigo or something, you're watching me zoom in on our chart on a a monitor,

46:21 it's probably nauseating. I apologize for that. Um, but that's the best way to get in there. So, we're looking at Yeah, we're looking at this trade right here. So, 2,968 contracts at the 121 strike. Looks like it's bought calls. So, and it looks like we marked it right because it was definitely a positive influence on the market. Um, now here's something interesting for a lot of people that don't necessarily know how some of this order flow works and how it kind of comes to the market. We see this trade right here, right? But this trade very likely didn't come in right here. It actually probably came in somewhere in this range right in here. Okay? And that's really the start of this impetus of this move is probably that this trade

47:08 was resting there because in order for them to take this trade, they need to hedge. And as they're hedging to take some of this, what are they doing? They're causing some of that potential move, right? Remember how we mentioned that this was essentially um that alternating strike pattern and then the negative gamma above? So, we'd expect some resistance and then maybe a break, right? We get that kind of thing, right? We get the resistance ahead. We get sharp move because that big old trade and then we just burst right through that zone. Um this would be a very difficult thing to catch in real time and trade with though. Um this this would have been almost impossible. However, it does set up for the fact that you do get a reversal due to the um imbalance that likely occurred because of the large move, right? We moved a,200 contra 1300 contracts, no 3,000

47:54 contracts, excuse me, 3,000 contracts. So, we made a big move. So, the imbalance that's going to come back from that, it does set up a pretty good opportunity to get long if you're interested in getting long. Um, and then obviously you can see that the continuation there. So at that point once we'd have broke to this level I probably would have wanted to go back to equity hub for whoever asked that one. Um and I would look at that level for the given day. And in this case 140 is a pretty strong strike. Honestly at this point I'd be looking at selling anything above or locking in at 145 for for a shortterm um play if you're looking at a bullish momentum. Um and it looks like we're kind of holding out around that mid mid handle area. Uh, Benjamin Strong, you want to look at Oracle?

48:40 I am finally Oh, come on. Sorry. Oracle. Uh, I'm finally not in this ticker. I finally got out of it. Um, this is another one. Let's take a look at EquityHub first. I always go to EquityHub first. Like that's that's where I start. Um, because I want to know the the general gamma, right? And in this one, we can see that we're generally positive gamma. This is a low side. So, if we're here, I would expect probably some pretty strong overall resistance at this area. Uh, lack of hedging, um, is basically what's going to happen. Uh, unless you have strong volume. If you have strong hero volume, you could potentially continue to to decelerate, uh, lower. Uh, upside looks like you got this 290 strike. This 290 strike is probably pretty painful

49:27 overall. So, I wouldn't expect to break down. Um, honestly, this 280 strike looks pretty solid. So like you'd probably be around this area depending on hero flow. Um breaking this 300 strike if we broke that it would be very very difficult. So a strong negative gamma strike is going to cause a very large reaction as we run into it. Typically you would see us run into it multiple times. On the opposite side would be a put a put wall, right? So if we were descending a large negative gamma strike would be a put wall, right? What would we expect with a put wall? Well, we don't expect to just break right through it. Typically, we expect to kind of resist a little bit. So, let's go into the chart. What do we say our numbers were? 280, 290 upside and then 270 is another big strike. So, those are the three that we're kind of looking at right now.

50:13 Um, looks like we did get down to about 270 and that's where we kind of found some support. It looks like puts were actually driving this. So, remember how in Oh no, that's the 90 EMA. We can't even use that. So, yep, that was the 90 EMA. Tricked me there. Um, so it is it is kind of call driven, but it's it's basically non-existent at this point. And that's at 275. Is that the strike that I said was basically dead? Yeah. Okay. So, there you go. That's the that's the that's the reason why. It's the exact reason I said, right? This there's really no hedging flow here. So, you don't see hero making any real moves, right? Like, it's it's not interesting. They don't need to hedge anything at this point at that strike. So, it's just kind of wherever spot volume is. So, that was a good one right there if you wanted to

50:59 look at that 280 and kind of float to it or just kind of sell calls against it if you're long stock. Um, they might get called away, but it's it's a good trade overall. It's one of my favorite trades. Like I mentioned, it's kind of like a call well trade. Let me pull over to the YouTube chat real quick. It's on the YouTube and let's see if I got any other tickers that people wanted to see. Oak. Couple of people wanted Oracle. Somebody mentioned Amazon. Let's take a look at Amazon real quick. Okay, so we got a local positive gamma here, but then we got this strong negative gamma at 235, 240, um, up into 245, right? So any strong move beyond 230, we would expect to have like chasing momentum, right, through negative gamma, especially something

51:45 right here. That initial getting to 235 could be pretty rough, though. So upside might be a little limited. Um, in general right here though, you're looking at very, very kind of compressed volatility. I would not expect anything in the 225 to 230 range to be like large candles. I would expect smaller candles generally speaking. Um, let's pop over and see what we got. Also, next expiry was very, very tall. Um, yeah. So, we can see here pretty small candles overall. We get some pops a little bit, but overall pretty flat. again. Let's let's get rid of this EMA here so it doesn't confuse me with the the put line. Um and then we're Oh, this is Oracle. Where is Amazon? It's not pulled up. There it goes. Um so yeah, again, still

52:31 kind of we do get this big move from 230 down to 228. Um so let's let's pull this up real quick. Hold on a second. I got one of my windows in the way. Move that. So, where were we talking? 229, 230 to 228. So, just kind of a fade here. Not really anything significant. Um, so this morning I probably wouldn't have been too interested because this is positive gamma. So, I would expect pretty strong like supportive resistance below um and and kind of a rebound is kind of what I would have expected. And and we kind of got that essentially. But this is not really options driven. Like the options flow here is very very mild overall

53:18 initially like this big put block but this is this is not a day where I would be following Amazon for options for the one who asked. Let's see. Got time for a couple more questions here. Yeah, Michelle move to the pane below. Absolutely. Uh unzoom. There's just an option right here on the So, let's add a new pane below because that's kind of a MACD is always a great way to just get a pane below in case you need to see it. Um, you can see MACD is right here. Uh, so there's the zoom button right here. You can maximize this pane, right? And then it's right here. Now, if you leave your chart, you'll notice that little square goes away. It's just up there. It's just hiding. This is Trading View, so for

54:03 those that aren't used to it, like it's just going to take a little bit of work to it. Uh, on that note, we do have the ability to toggle it off um to look at the older view if you're in a situation where you're having issues and you just need to go back and forth. I recommend not toggling it off. What I recommend is opening another window and getting used to this view. This view is better in so many ways. And if you want to make it less like the other one, you can, right? Like you just literally go here, change this to lines, right? You don't need the MACD because you're trying to make it smaller and you just make your grid lines a little bit brighter, right? And then you'll get a very similar response before, but you still

54:50 have all the other features that you were looking at and you get the lines in a different way that are honestly a little bit better. Um, this chart allows you to do a lot more. So, like you can see, I can really move this chart around a lot more freely. Um, now if you do get in a situation where, hey, this chart's kind of like I I want to make it go natural and I don't want to click away. Um, I believe it's alt R or option R if you're on a Mac. We'll just resend it. So like you saw that, right? Like I'm just like way over here. It's completely wrong. Option R, it goes back and it takes whatever our time zone is here, right? So if it's one minute, it's going to go back. If I go to two minutes, which is typically what I use my chart at, um, you'll notice that option R will set it up so that it's two-minute bars all the way across.

55:37 Okay, I think that's the bulk. I don't think there's Malcolm. Yeah, I'm having an issue with that myself. It's intermittent. I'm still chasing that one though. Um, I'm looking at it though. Totally agree with you. I haven't figured it out exactly. Um, but that's the bulk of what we had here. So, I'm going to kind of go over the last few things. What do the alerts show? And have not seen one today. You haven't seen one today because the market's just kind of going sideways. But what they show um, and you can go to here, if you go to resources, support center, you can go to like flow alerts flow flow hero flows, reversion flows. You can go here. There's a bunch of articles

56:22 there that you can look at. But what they are is it's a change in the net behavior or the total number for heroes. So essentially you're looking at right here. Let's change this to candles to make it a little easier to see. I'm sorry. Right here. Um you can see that on net we were essentially negative basically negative. No we were slightly positive and then right here we switched to negative. Right. So you can tell at this point we went from a positive overall sentiment to an overall negative sentiment. So you're looking for potential, hey, is the market going to potentially reverse? Is it going to potentially shift? Um, we went to this negative sentiment. Are we going to get that or is it a continuation? Right.

57:10 Show a case of the total. So you want to see total. Yep. Total's right here. A lot of times I'll leave total on my upper chart and you remember how I had the pain below? I'll have that pain below having them broken out. That's one way that I've really looked at kind of um isolating some of it. I'm I'm still I'm still honestly tweaking things. I haven't I haven't found a a perfect area. Um now my normal training dude charts absolutely I have exactly the way I want those. But with all the extra information that I can get now, um these are on my other screen. I need to find a way to to add some some availability here. So, but there's a lot of customizability and that's what I like. So that's kind of where I'm pushing a lot of these things. So if anybody doesn't have any other questions, let's

57:55 finish up the last couple of slides here. So what we covered, we covered delta hedging. So we're talking about that that at the money delta, that 50 delta, if I bought an option at 50 delta, the market maker short that option, right? Being short that option means that they're short 50 delta and they don't want to necessarily be short 50 delta. So if they are short 50 delta, how do they fix that? They buy 50 shares, right? So they're hedged and every time that option changes one or two deltas, they rehedge, right? And that's kind of what we're talking about with delta hedging, right? That well that's exactly what we're talking about with delta hedging and that constant impact that constantly happens as all of these things transition. That's what we're showing in hero, right? So, not just Susuana, but you know, JP Morgan or Citadel or um even City Bank, if they

58:42 get a bunch of options and they're they're trying to make a market for some of their options, they need to be able to to hedge those, right? So, same concepts there. Yeah, I'll show Bob will show here on S&P in just a second. Um, and then what we covered is some of the advanced charting techniques. We just talked about moving things between panes. We talked about the zoom aspect. We talked about adding moving averages. Again, if you want to add a moving average directly to a data series, that data series needs to be the primary. So, if you're looking at Amazon and you want to look at Amazon calls and you want to add um a moving average to Amazon calls, oops, you got to you got to do it the right way first. You got to select Amazon calls and then add your moving average, right? And you can add a simple moving average or an exponential moving

59:27 average. Either or. or you can add any one of the 400 other things that are named moving apparently. Right? So that's kind of the the the issue there. And then integration looking at the different models having an expectation for me the best way that I take advantage of hero is that I have an understanding of what I expect at levels and does the price respect those. Um, I'm not looking to see, okay, Amazon is just or Google is just absolutely massive right now and um, everybody's just buying it. I'm not just trying to jump into momentum. I want to have a bias already and then I want confirmation bias to lean into that and that's how I would utilize those

1:00:13 aspects right? Um, and then some of the some of the general stuff. So today uh just a we have the openhouse in general and that goes through the rest of the week. So it's openhouse. So you don't need to log in. You don't need anything. If you're having issues with that, just pop into an incognito browser and then go to the website. You shouldn't have any problems. I've noticed Chrome's had a caching issue a little bit. Um it's only Chrome users that I've seen have the issue. Um and it's only if they were a previous game member. So just be aware of that. Just pop into an incognito browser. It's not going to change anything. you can't save a watch list or do any of the things you would be able to do as an actual member anyway. So, there's nothing major there. You're not missing out on anything um from that aspect. And then tomorrow, I'll be

1:00:59 talking about Delta again, but I'll be talking about it in terms of implied volatility. So, we're going to get into the options calculator. Let's let's take a quick look at that bad boy. Um, this, um, this has been something I have been asking for for a while and I was incredibly happy that I mentioned it to Matt, the uh, the CEO, the other founder, and he was like, "Yes, I want one of those also." So, we were able to pitch it, and it just so happened that Brent was gone on vacation. So, the project got started before he was even here, so he didn't even get a chance to say no. Uh, and it was absolutely fantastic. But we see that long call here, right? And we'll get into how this works and how we can change what we're looking at and change our expectations,

1:01:45 right? So, we're going to get into that tomorrow. Uh we're going to talk about IV, not just the IV down here, but some of the things you can change with some of the different chart settings and IV settings. We're going to get into the nitty-gritty here. So, if you want to look into pricing models, that's tomorrow. And if you are not subscribed to the spot gamma or even if you are um this is what you want your 50% off your first year. This is this is for all of you guys. This is the slide they told me I should be on at the very end to make sure that you see this slide because all you guys ask for are discounts and I love that because I like discounts too. Um so this is what I would absolutely look at. Now this I don't know for sure. I've heard rumors. I've heard rumblings. this is

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