Building a Trading Routine

[00:00:00.07] - Speaker 1
Sam. Good morning, everyone. Welcome back to our second session for today. Very, very excited because we have Annmarie here. It's always a pleasure to have you. We love the session when we are together. Ann Marie and welcome. Thank you.

[00:00:51.11] - Speaker 2
Thanks so much. I'm looking forward to spending time with you, Fabio. I always do always learn something new and exciting about Mentor Q. It's such a powerful tool.

[00:01:02.25] - Speaker 1
Yeah. And I think the goal, we started this session a couple of weeks ago and we call it like trading the edge. Because the problem is that with the, with the world we live today, like and how popular trading has got is always hard if you are a beginner traders to find your edge. Right. What do you do? What strategies do you implement? So with Mentor Q, we are trying to deliver data that can help you build kind of like a strategy that has an edge because everybody's using the same indicators, everybody's using the same strategies. If you read a strategy on a blog, then most likely you're not going to find an edge because everybody's been using it and extensing the alpha that comes with it. So what we're going to try and show you today is some alternative ways of looking at data. And yeah, very excited to be here and show you that. So I think today we're going to maybe focus on stocks and then we can go and see like how the levels play out. But essentially a few months ago we released a very important tool which is our Q Score.

[00:02:10.11] - Speaker 1
This Q score is basically what you see is those numbers that you see here on the dashboard. And the idea behind it is that the Q score is kind of like a rating system. So similar when you have an analyst recommendation on your platform that you see coming from like Goldman Sachs and JP Morgan, we are using a similar approach to that, but it's data driven. So we look at different factors that could affect the underlying asset. So the factors that we're currently looking for is option, volatility, momentum and seasonality. The scores go from 0 to 5, where 0 typically is a bearish kind of bias and 5 is a bullish bias. Our seasonality score goes from minus 5 to plus 5. For those who want to learn more about the Q score, we have dedicated guides here. We also build trading strategies. We also have our screener and if you go under our quant strategies here, these are all strategies that are built using the Q score and this can be accessed by everyone. Just create a free account with us and you can access all this information. So if we go into just a second into the guide here, this will show you basically what the score is.

[00:03:24.29] - Speaker 1
We have a video here, it's showing you what it means. So if you look at momentum, zero is kind of bearish, momentum five is bullish. Seasonality, volatility and option score. So today we're going to focus mostly on option and momentum. So if we go back to the dashboard, we can see here on all the assets that you have, you have the Q score right there. So if you look at, for example, Tesla, we have our option score, our volatility score, our momentum score, etc, looking at the data current is very important, but it's also very important to look at the historical data. So what we have here is we have historical charts for every one of the scores. So very, very nice. So you can kind of backtest and see what happened like a few weeks ago. So when we were kind of like in the tariff situation during, like February to April, Tesla, of course went from 400 and something to 225. And here you can see, basically then we're now in a, in a new bullish trend, let's say, look at how the Q score kind of moves. So we went from a very, very bearish option positioning to a very, very bullish.

[00:04:34.23] - Speaker 1
We're now at four score levels. So look at how the price reacted to that. So we are, we are basically shifting from bearish positioning to bullish. And now we've been kind of like in this situation until, of course, we had the day where Trump and Musk were kind of fighting over Twitter, where everybody started, like, really being negative and then the next day they just became bullish again. So this was kind of very interesting to see, which was one day of like Tesla losing maybe 14, and then now it's kind of back up where, where it was a few days ago. So as you can see, there's a lot of predictive value here on the different scores. And you can see basically also our momentum score right here. So look at when the momentum kind of started being bullish. And this is kind of at the start of the trend. So very, very important. But then what else can you do with it? So I think we have developed also screeners on the back of the score to help you understand and find potential trade ideas and stop me anytime, Annmarie, if you have any questions.

[00:05:36.03] - Speaker 1
I'm happy to answer definitely. So when you click on the screeners, what we have is we have four screeners for every score and we're going to focus on options. Today we have the highest option score. That's going to give you basically the asset top 50 assets which have the highest option score. So we can see for example that SPX, Microsoft, the Max 7, we are all very, very bullish. We are at the highest of the option score. So very, very interesting, but also could be very risky because we are also at the.

[00:06:08.16] - Speaker 2
I was just gonna ask you that if that is peaking and how many, how many days do we normal normally see these fives before things sort of get wiggly?

[00:06:23.14] - Speaker 1
So I think like we've seen, I think we've been at 5 on all this company for the past like couple of weeks. Like I think since, you know, the macro news is interesting, but I think it's very important to not only look at the option score but also look at the other scores here. Here you can see for example our momentum is still a tree. So maybe on SPX we are very, very high on option, but we're still like a neutral momentum. Right. And our seasonality is kind of negative and we are a very, very low volatility. So understanding how all these play out together is very, very important. So for example, if we have a very, very strong option score but a very, very negative seasonality score, then maybe that could be a divergence and you might want to look into it and understand, okay, why is the seasonality negative? And maybe there could be like a short term correction.

[00:07:12.15] - Speaker 2
Okay, I have another question. What if I wanted to put this in some sort of Excel format and let Excel build a graph out of it to see what the correlations look like?

[00:07:29.28] - Speaker 1
Yeah, yeah. We are working on downloading capabilities and APIs. So right now we don't have that. Okay, yeah, definitely.

[00:07:39.08] - Speaker 2
Yeah. But I can, I can literally copy and paste and throw that in in an Excel spreadsheet. I could also ask Chat GPT to do it for me.

[00:07:49.08] - Speaker 1
Exactly. Now we have it.

[00:07:53.13] - Speaker 2
I'm gonna do that. Yeah, yeah.

[00:07:57.13] - Speaker 1
So basically the high and low option score are very interesting, but I think what the most interesting part is the delta, the change in option score from one day to the other one. So what we have is the one day option score increase and the one day option score decrease. So let's start with the increase. So the increase measures the option score as of yesterday. So this is an end of day value compared to the previous day. So what's very interesting is here, for example we have Netflix. We now have an option score of three. So that means that we went up three points from the day before. So that means that Netflix was in a very, very bearish option activity. Positioning. And now we are neutral, kind of in the neutral side. This one is maybe. These are maybe like smaller company, but like. So smacker company as SJM as a now option score of 4 and we went from 0 to 4. So we, we certainly. So this could be what's going on. Why have we changed so much? Or like, let's see if we get anything else. Like Chipotle. Like we were.

[00:09:02.05] - Speaker 2
I think Smuckers had some kind of acquisition. They had something going on. I saw them in the news and I forgot. So it, it might be something because, you know. Well, maybe you don't know, but they make things like peanut butter and jelly and those sorts of things.

[00:09:18.16] - Speaker 1
Yeah. So this can tell you. And then again you can open this. So we can go and open this sticker here. And then. And then we can build our trading. Trading routine. Like so now we can see our score here. We can look at. Of course there's not a lot of option activities, as I said, smaller companies. So there's not a lot of maybe liquidity compared to the other one. But you can then go and see the different models. So here you can see, for example, that we had a very bearish candle here. Now the option score is kind of increasing and maybe that could be a good opportunity. Again, this is not trading advice, but this is kind of like how you can read the data. But the interesting part is that I want to show you is we can also go back in time. Right? So if you want to say, okay, let me see, how was our screener back Monday? Right, so let's do it on a Monday. We do it on a Monday because then you can have.

[00:10:18.13] - Speaker 2
Okay, that's fantastic. I love that.

[00:10:21.23] - Speaker 1
So on a Monday we had Costco, we had Tesla, we have Target, we have CVX and all of that. So what we've done is we created an Excel file here. So here what we did is, okay, let's take the data for the past three Mondays. So this would, would have been. Well, this was a choose. It was after the long Memorial Day weekend. So Monday was closed, so we took it on Tuesday and we took these stickers right here. And then we said, okay, let's see what the opening price is on Tuesday and let me see what the close price is at the end of the week. And let's see what the return is. Again, this is without any trade management, without any stop loss, just simply taking at the open, taken at the close. We're building something very simple so that everybody can understand. So for example, on cvs, on that week, the week of the Memorial Day, if you had taken this trade at the open and closed, at the close, you would have made a 5% return. If we scroll down to the following week, this is the week of June 2nd, then there's some really interesting data here.

[00:11:27.25] - Speaker 1
So these are kind of like the returns. Let's look at this week. Right, so we had Monday, we had Costco, we had Tesla, we had Target. So first of all, Tesla is up 14. So if we take our chart on Tesla as of Monday now, we basically are. Yeah, exactly, exactly. So this would have been kind of like the move that you saw, that you saw from Monday all the way to now. We're at 325.

[00:11:58.25] - Speaker 2
So let me interrupt you one more time in terms of how that spreadsheet got built, that you took the long at the open. How did you know that the position was a long? Was it just based on the Q score?

[00:12:16.25] - Speaker 1
Yeah, exactly. So here what the idea behind it is that we are looking at this column here, which is the score change. And if we go back to our screeners, we have our option score increase and our options decrease. Okay, Decrease will show me basically the asset that saw the most negative change in the Q score. So for example, here we have Atlassian. So team. So we can look at the ticker here as well and see what's been happening there. So as you can see, basically like we are kind of like in a downtrend. So yesterday we went like super negative on positioning. And now today we can see.

[00:13:05.02] - Speaker 2
Yeah, I see.

[00:13:07.12] - Speaker 1
Yeah. So here, for example.

[00:13:09.12] - Speaker 2
Interesting. Okay.

[00:13:11.07] - Speaker 1
Also, so was positive on Monday, but now we are in the negative side. So something is happening there. Costco is also at all time high. So it's always good to look for. So. Yeah, exactly. So for example, Costco, I think was Monday we saw the increase, but now we're kind of like right here. So we are. So I think, you know, a lot of companies probably are monetizing on the stock. We are, we, we went over the 1000 level. So it, you know, it kind of, kind of makes sense. And of course, maybe there's earnings coming up as well. So.

[00:13:44.08] - Speaker 2
Okay, and so sorry, one last question because this is fascinating screener. So let's say I'm, let's say I'm, I'm looking at the market and I see that METHQ has all this kind of data, but I just really want to get into a trade or trade positioning. Could I literally look at these highest option score changes from super high to super low? And then go to my screens and use that information to see, okay, if it breaks my 15 minute support, it confirms that this downside action is going. So I'm going to take a short or if it breaks my 15 minute high, I could take along. I'll just have my risk managed by knowing what that 15 minute candlestick is. Would you say that that's fair?

[00:14:42.03] - Speaker 1
Yeah. So the idea again, exactly. That's totally the point. So basically, and we can go into our trading routine. So let me actually go here. So if you. We built basically a document to go over this. So we have a. Building a trading routine where we start from the screener. So the screener were developed to kind of like filter out the noise and filter out things that are important. So for example, we have different types of screeners. We have our gamma screeners. So for example here is changing positioning. Right. So what are the assets that saw the biggest positive change in gamma from the day before? So again, this could tell you like, okay, like I'm opening the day, today's Monday, what happened over the weekend and what are the things that I should be looking for. So in this case, for example, what TlT hyg. So there's a lot of positive positioning going on to the bond market. So These are the ETFs, right.

[00:15:35.23] - Speaker 2
Interesting.

[00:15:36.25] - Speaker 1
You could also then go the opposite and I want to see the highest negative change in Jack. So where is the positioning or the positive position coming out? So we're coming out of SPY qqq. So like I think the market is starting to kind of also like maybe protect and maybe like.

[00:15:52.29] - Speaker 2
Yes, absolutely. Yeah.

[00:15:56.28] - Speaker 1
Then you can use our gamma level. So let's say that you build a strategy around our gamma level. So let's say that you're very successful at trading the breakout or the, the reversal of put support. Right. So you could actually come into our screener and look at our put support screener. These are companies that are as of the end of the day yesterday approaching our put support. So we could actually go and see for example what happened to any of these companies. Right. So that means that you're looking for big levels of support and resistance that could potentially mean either a very strong downtrend, so an inflection point or a reversal. Right, exactly. Like, like reversal. So here these are our gamma levels. So the screener simply gives you an idea of what are the assets that are approaching that level. So you can kind of like then build a strategy around it. And if you try stocks, if you trade ETFs you can find them there. Then we have of course, for more advanced option strategies, our open interest, our volatility, volume and so on. And the Q score essentially is trying to tell you based on the metric that you want to look for.

[00:17:08.08] - Speaker 1
And we normally use options because it's very predictable. And when the market shift positioning, that's when you start seeing the big money move to an asset. And that's when we start seeing those levels being kind of like respected. So if we go back to our screen and let's start, let's go back to our Monday, I'm gonna go back here and I'm going to go back to Monday. So let's go over a couple of trades. So let's start with Tesla and then we're gonna go into Target, right, Because those were interesting searches. So on, on Monday we see Tesla. So of course the week before we had the all like Twitter fight between Elon Musk and Trump. And if we go back to Friday, it's actually very interesting because the positioning of Tesla as a Friday was actually very, very bearish. So we were at the lowest of the option score. So a lot of things change. And then the next day at the end of Friday, then we go back to our Monday, then everything is back up again. So it's kind of like one day minus 14. And then the next day we are back to the levels that we were.

[00:18:20.09] - Speaker 1
So the first thing I do is I look at our net gum exposure chart because I want to see what are the levels that I might be looking for. Again, this is like support and resistance built by looking at the option chain. So I see there's a lot of like really positive positioning around these over 300 levels. And of course our highest point is our 400, which is our core resistance right there. Then I also want to look at should I be worried in the short term. So I want to look at the next two expirations right here. And then I want to look at the expiration with the ISGAM exposure. So in the short term there is still a lot of negative positioning over the next week and the following week. So the market is still concerned. But if we look at further down the month. So here we are at June, June 18. We still have a lot of positive positioning right there on Tesla. Next step is I look at the matrix. The matrix is really a simplified version of the option chain where you can understand how market is reacting and what could happen.

[00:19:26.06] - Speaker 1
So first we can look at the July 20, very important expiration. We have 8% of gamma expiring that means that those options after June 20 will expire worthless or with value, it doesn't matter. But basically market makers might need to reassess their hedges after that expiration. So it could mean that the market is going to roll those strikes further to the next expiration to a higher level maybe. But there could be some technical movement here. So obviously pay attention at June 20th because it's also very, very important expiration for SPX for the Vix. So there's a lot of like options expiring on this date. So very, very important. And then the next one is July 18, where we have 13 of gamma expiring on that week. So by understanding that, you can also see the color green or red. Green means there is positive gamma. Red means that it's negative gamma. So this week we still have a lot of negative gamma here. And those would be our levels for the week. So 315 is a core resistance. 208 is our put support. So when we go back to our chart, we can kind of use this.

[00:20:39.22] - Speaker 1
So as you can see, we saw strong break. I think this was Monday of the 315 level. And now we are kind of here. So now the, the core resistance from Monday move around 325 for next Friday, for this Friday for tomorrow. So as you can see, the price is kind of like pinning around this area right there, waiting for something to happen. Let me know if that makes sense.

[00:21:08.29] - Speaker 2
It does. The question I might have is, well, I do have this as a question. So you know how some of us, we just absolutely, desperately want to put a trade on right away. When you're taking a look at something like that and it's pinning, you would see everything crowding at that edge. There are a couple of things we could really see happen. The first is what we're doing is just building inventory. And then we're going to either liquidate at a discount or a premium, or we could sit there all together. What, what might we do as a trader to say, okay, I'm building my edge? I see this moving sideways. What data can I go to inside of Mentor Q that will tell me, hey, you better wait until it does X before you decide. How would I do that before I can make a more calculated decision?

[00:22:18.05] - Speaker 1
It really depends on a couple of things. First, your holding period. Are you day trading the stock? Are you swing trading the stock? Because obviously based on that type of strategy, you could do multiple, multiple things. So if you are like trading the stock. So if you're like holding the Stock for maybe five days or 20 days we can go into the model and we can see for example our swing trading model. Right. So in this case we see green, we see our lower band. So we are, we are now in a bullish bias on the stock and our level. Actually this was five days ago. So let's go back to today. So our level was 268, right? That was five days ago. So imagine we go back three days ago. That was Monday. So Monday we are here, right? So let's say that you want to put a trade on Monday, right? And you have the swing model. Actually this is a very good example. So let's go back to Monday. Right. So Monday let's say I want to put a swing trading on because I think Tesla we saw that it's going to go back up and I want to be there.

[00:23:30.14] - Speaker 1
So we have our swing trading level. So 268.54. Our risk trigger 321. So let's go back to the chart. Let's take away the gamma levels and let's to start adding some lines. So we are Monday and basically our swing level is around here. So this is our lower band, the same one that you see here, 268.5. Roughly our risk trigger is 321. Right. So let's put another level up. Now we are at 3 or almost 321. All right, so now we are Monday and we are basically trying to build a trade. So here you now have a clear risk management set for you because we are backed by data. So if we go back to the chart, the goal of the model is to potentially forecast the next five days of price action. We also give you a backtest so you have a 78 success rate, meaning that in five days from now the price should close above the lower band. Again, it's a data driven model. So it's not. Yes, we're not giving you a recommendation but based on the factors that we have in the model that means that ideally when you are on this Monday the and we are, let's highlight it here we are on Monday.

[00:24:53.17] - Speaker 1
This is when we would be doing the trade. Ideally if, if the model is successful in five days in the future the price should be above 268. So that means that you are opening at 284. So you're roughly 16, 17 points there. So you could have a really interesting stop target. This is your stop level for, for the week. And then basically you, you have your profit target which is this. So it's Kind of like again, the price could go higher, but at the same time you don't want to risk. So you are basically.

[00:25:29.26] - Speaker 2
Exactly, exactly.

[00:25:33.21] - Speaker 1
And then we can plot those. So we have our indicators there as well. So we have our swing levels directly there. So those are already automatically updated in the chart I show you. All right, so here, what you see here, this is the level that we had four days ago. So this is our lower band and these are the levels. So we show you the last five days of level. But this again could be actually open this up. So yeah, you could have those level automatically drawn in the chart for you. So here we have them here.

[00:26:29.27] - Speaker 2
That's fantastic.

[00:26:31.27] - Speaker 1
This would have been the level that we drew. So this was a lower band and this was a wrist trigger. Again, take the levels out. This is your kind of like.

[00:26:48.29] - Speaker 2
Yeah, I love that.

[00:26:51.26] - Speaker 1
Yeah, very simple.

[00:26:55.19] - Speaker 2
Yeah, I love that.

[00:26:57.19] - Speaker 1
All right, let's see if we have some questions.

[00:27:07.21] - Speaker 2
You know, it occurred to me, Fabio, that a trader could just take a little bit of time just studying the core elements and use Mentor Q to generate some great income while they're learning to become a super user. Right. Because the super user can do. I mean, it's incredible the kind of stuff that can get done in this, in this product. But really you don't need to be overwhelmed by it. It's just have a look at the top. Don't get concerned about missing something that was magnificent. You're going to miss something every day. Just pick the forms out, look at your option change and then, you know, just pay some common sense attention to your price action in terms of support and resistance. It's really, really straightforward.

[00:28:19.14] - Speaker 1
Yeah. And I think, I mean most of our beginner user will start with using the levels. So this would be the indicators that we have. Tomorrow we are going to have an amazing event with Transpider where we're going to showcase the power of the levels in the platform. We are also going to showcase how to build screeners on Transpider because you can build, you'll be able to build real time scanners, real time alerts. We're going to show that tomorrow. So tomorrow is going to be very exciting for us. So. But also just look at the reaction. So I think it's important that it doesn't matter if you trade option or you or you're just simply like trading futures or stocks. Right. It's important that you are starting to embrace this idea that option data is market driving. So it's driving the price in the market. Like here we see it like, you know, the price is spinning around the put support level then reverses like of course it's not to the tick but it's always very important to understand what the risk could be. So we had, we touched the overnight, we touched the level, we tried to break it, we couldn't, we tried to break again and then now we are starting a strong movement, we break the ivo level.

[00:29:33.17] - Speaker 1
There's a strong candle there. And now we are stopping at the jack swan. So Jax, one very important, it's like a very, very strong reaction area. So the price touches to the tick drop down. And now we are kind of pinning around here. So let's see what happens. So.

[00:29:50.02] - Speaker 2
Sorry, is it okay if I interrupt?

[00:29:53.11] - Speaker 1
Of course.

[00:29:54.00] - Speaker 2
Ask a question. Yeah. So when you have these GEX levels, right, when you. How are they ranked? How? 1, 2, 3, 4, 5. What, what, what does the system actually doing back there to give us those levels?

[00:30:14.29] - Speaker 1
Yeah, that's a very good question that we get a lot. So basically within the indicator we have, we divide the levels into two categories. So we have our primary levels and we can filter them out here. So our primary levels are essentially three levels and then we have our one day max and 1D minimum. So we have our core resistance, our core resistance zero DTE. So we plot the primary zero DTs levels as well because they're very, very important. And our hival level, HIVAL level is our gamma flip point. So this is when the market kind of start moving from positive to negative gamma. And then if you have question that, I can answer that as well.

[00:30:54.26] - Speaker 2
Great.

[00:30:55.11] - Speaker 1
Then basically we have our one domain and our one the max. Right, one domain, one the max. Very, very important. We have back testing results on the website. So if you go here under quant strategies, gamma levels and then backtesting, this is all data, but it's looking at four years of data. So success of the one domain means that on SPX with four years of data, the price closed above the one demand on 87% of the days and close below the one the max on 85% of the days. So why is that important? Because again if you are trading futures and let's say that you are in a long position here, you know that this could be your potential target because you have statistic that says that most likely the price could potentially retrace back. Of course we could be in a very bullish day and the price just keeps going up. But why would you want to risk it? Right?

[00:31:47.18] - Speaker 2
So yeah, exactly. Take your profit and run Exactly.

[00:31:51.14] - Speaker 1
So here you have, like, some sort of, like, metrics that you can use. On the other hand, like you. If you are selling options, then that could become your strike to potentially sell above or sell below and try to profit from the premium. So that's another strategy that we see a lot of our users do, especially on spx. If you are doing swing trading, then again, you could use these levels to understand what are my areas, where are. Where can I start placing a trade, and what is the model telling me? So, for example, within the next five days, our lower band. So we are in a bullish bias on spx, our lower band is right here. So this is a very, very important area. So if we look at our roadmap right there. So if you are trading spx, then these kind of like, are the. Are the areas that you should be looking for. So let me just take away the levels, if that works. So again, you have this area from 5935 to 5086, which could be a very, very strong support area. And then you have kind of like our resistance area right here.

[00:33:14.20] - Speaker 1
And then we are now, like, pinning around this area. So as you can see, we are failing to break this area right here. It happened yesterday. We're now trying to retest it. So this level could be very helpful to understand. Okay, what should I do within my asset by looking at this information?

[00:33:33.24] - Speaker 2
One thing I do want to say, and Fabio's already said this several times, but when I talk to folks about Mentor Q, you know, I'll get a note and somebody will say, hey, you know, I don't really know how to use these levels. Remember, the level is a zone of participation, and what they're really building is this zone for you to watch. So it's supremely important that you don't think about it in terms of the actual tick. Even this morning, I was on a show with Deanna and someone said, hey, this says that, you know, I'm using my mentor Q. And it says price ought to do this. And I said, no, it says that there's a potential for that, but you need to wait to see what the chart does and follow along. Don't get so obsessed with top ticking and bottom ticking. Listen, these tools are phenomenal. They work very, very well. But you're going to get yourself in a heap load of trouble if you think everything is right to the tick and you're gonna sell the top of XYZ or buy the bottom of XYZ and then just continue to double down if it loses its level.

[00:35:06.07] - Speaker 2
You've got to have risk defined very, very well. For instance, even if we look at this put support for the zero dte, right. It's got the triple bottom almost. And so your, your superpower as a trader is going to involve defining risk and having patience to watch price move definitively. And so if I'm staring that down, I see that great big green candlestick that comes up. Exactly. That one there tells me, I know you're trying to sell, but good luck buddy, because it's not happening for you. That big push to the top of the range right there in between the two lines in between the put support and the hvl. Yeah, the top of that candlestick formation, it tells me, hey, they've broken through that range. They're off to the ranges. I'm going to be able to go long now and walk up into that next step. Now you might look at it and go, oh gosh, I could have gotten it at 5981.

[00:36:28.12] - Speaker 1
Yeah.

[00:36:28.26] - Speaker 2
But it could also have gone to 5812 or whatever. Right. You don't know how traders are going to definitively respond, but you know they're going to make a decision there and that's the key takeaway. So sorry to get on that soapbox, Fabio, but I mean it's such a powerful tool and there's so much content there. But people sort of look at it as these absolutes and at the end of the day there are millions of trades moving in and around all these levels and there's no exact crystal ball that says, yep, they're going to definitely do that, they're likely to do it. But how about we confirm and manage our risk so that we can stay mentor Q customers for, you know, a dozen years.

[00:37:26.06] - Speaker 1
And I think the other important point is, I think I always do this analogies think about technical analysis, but like power by forward looking information. Because one of the challenge of technical analysis that is looking at past data. And then of course everybody's looking at the same level. So when you look at support and resistance, the whole market knows that and the old market is looking at the same level. So there's no prediction on that. It's very, very useful, don't get me wrong. But when you get like forward looking data driven by option flow, then it becomes more clear. So let's imagine that, okay, so the market, this could, could have been support and resistant driven by price. So we have that and, and we know we can see that. Then we, we have this strong Candle. But how do you know that you can kind of get into that trade? Because this could also be like, oh, we're still testing the level. Right. So again, you have your put support. We have a strong break of that put support. And there's going to be liquidity that is going to be fueling that move. Right.

[00:38:25.29] - Speaker 1
So because we are breaking that important level. But let's say that we get into the trade. Where is our next target? Where do we go from there? So of course, we have our previous high or previous. Yeah. High here. So this could have become a nice. Another target. But what if you want to wait more? What is your next target? So by having those levels, you can quickly see that by the way, this level here was a very important option level. It wasn't by chance that we stopped at this level.

[00:38:56.25] - Speaker 2
Exactly.

[00:38:58.01] - Speaker 1
And then if you. Let's say you break to this level, what is your next target? So again, you break through here. So let's say that you hold the trade. You did amazing because you traded at support and now you're holding it. And then you break through here again. Where do you. Where do you stop? So if we want to stop to the bottom, we would have lost all our profit. Yes. We had a. We had a turn back and now we're here. This could have been another target. You don't want to lose your profit. You don't want to wait for the exponential move. You want to, like, be consistent and find the right balance. So I think that could have given you another interesting.

[00:39:37.04] - Speaker 2
Yeah, for sure.

[00:39:38.14] - Speaker 1
For profit. Because you don't want to give this away. You have done a great job. Why do you want to give this. This move away? And basically risk of like, actually reversing back and being stopped.

[00:39:50.02] - Speaker 2
Yeah, for sure.

[00:39:57.04] - Speaker 1
So, yeah, I mean, that's the idea. So basically, going back to. To your question, I think we didn't go through what the jack.

[00:40:05.18] - Speaker 2
Sorry, I always hijack. I always hijack you. I'm so sorry. We go back to wherever you were.

[00:40:12.10] - Speaker 1
Yeah. So basically, like, if we go back to what Jacks 1 to. To 5 or to 10 means basically those are. We call them secondary. Secondary level. But again, look at how nice this is. Right? So before, we didn't have. We didn't have objects one. So let's take that away. Right. So again, we have this high here. Right. Let's imagine that you. You then add the secondary level. Again, these are more levels of support and resistance. So we went all the way to Jackson and then we dropped. And again, it's not it's not by chance that we do that. What does Jax1 mean? So if we go back to our, our chart, Jackson would be an SDK SPX, for example. Jax1 would be the first level after our primary level with the highest gamma. So we have our core resistance here and we have our JACKS one, which is this one. So even if you see JAX one, oh yeah, it's not going to be relevant. Well, actually it is relevant, very irrelevant. Because look at how wide this body is compared to the main one. So it's a bit smaller, but it's still a very, very large number of gamma that is expiring at that level.

[00:41:23.18] - Speaker 1
So when we go back to our chart, it's not causality that this price stops here. This is a reaction area. This is very important level. And then you have the other one.

[00:41:38.24] - Speaker 2
Good to know.

[00:41:40.08] - Speaker 1
Yeah.

[00:41:42.05] - Speaker 2
So in your estimation, if you look at the HVL for the 0dte versus the HVL for the normal chains, what kinds of things do you tend to notice? What kinds of patterns do you see?

[00:42:00.03] - Speaker 1
Yeah. So first of all, maybe Anne Marie let me go into, into the guides just to show what HVL is and what. Okay, what does it mean? Because it's, this is very important. So let's go into our, our guides. We have a delta hedging section here and let's see if I can find it. So let's go into what positive gamma and negative gamma means. So gamma is obviously one of the Greeks that we look for when we calculate our gamma levels. But it's very, very important to understand it. Very simple but very powerful. So when we are in a long gamma environment, which you see right here, long gamma means positive gamma. Right. So when you open up any asset, whether it's a stock and ETFs, you immediately see after our Q score we are in a positive or negative gamma. So that means that the market is buying more options than selling. Right. So there are more long options than short option. When the market does that, that means that the market makers, and you can see it in this chart here, they go short when the market goes up and they go long with the market goes down.

[00:43:10.29] - Speaker 1
So what happens is that volatility typically is lower because the market makers are kind of like moving the price as like stopping the price to do extension move as it goes up and then they are kind of like stopping it when it goes down. Right. So it kind of like balances out the, the price action. So as you can see, the last couple of days we didn't really have any strong kind of movement. Like today we are 0.13 there. But when we are in negative gamma, it's the opposite. So we have, we are shorting. So the market is selling more option than buying. Right. So as a result the market makers that have to hedge, they're on the opposite side of the position. So they are going short when the market goes down and they're going long when the market goes up. So as you can imagine, if we are seeing if we're in negative gamma and we see a very strong candle to the downside, not only is fueled by the price action of the market that is looking at maybe short trades or short trade ideas, is also fueled by the liquidity of the market maker.

[00:44:10.24] - Speaker 1
So as we approach those levels, then the market maker is like shorting more and more as the market goes down. So we see like this massive movement. Again, that doesn't mean that if we are in negative gamma we are just gonna drop. It means that we are gonna move more with more volatility. So when we are in negative gamma again, why is this important? Because if you are trading NQ and you normally have a 20 point stop loss and we suddenly move in a negative gum environment, those 20 points are not going to be good because they're gonna probably chop you out very fast. So reading this and understanding okay, like oh wow. So like stop loss can be 20 points because we are in a positive gamma. When we look at a negative gamma environment and you are trading queue, that means that the price could move up or down very, very fast. So again, as a trader, why, why do traders lose money? Because they don't manage the risk by looking at the data.

[00:45:06.27] - Speaker 2
Yep.

[00:45:07.26] - Speaker 1
So very important. So again, this is right here on the dashboard. First thing you have, you have our Q score, we have our expected move for the day. We have our gamma condition and of course we have our volatility. So those are first thing that we look in the morning. You know, are we imposing gamma? Are we negative gamma? So if we're in negative gamma, then the strategy that we might want to do is completely different whether if we are in positive gamma. So if we're in negative gamma, we are not going to sell options because that could be risky, the premium could be higher. But again, you know, you could be exercise very fast because the market could potentially move.

[00:45:44.15] - Speaker 2
So as a, as someone who's very intimate with all this kind of data and we get up in the morning and when we first began, you said, hey, there's some hedging going on. What would you, first of all, what would you say, hey listen, here's something to note. If you see this number, there's some hedging going on. Or if you see this flip, there's some hedging going on. And then that might tell us, hey listen, you know, watch your risk parameters. What, how, how would we dig through that?

[00:46:22.18] - Speaker 1
Yeah, so I think going back actually to what zero Ds level mean, like it's also important that we understand how much option is expiring on any given day. Right. So if you open up the matrix, you have it here. This is basically showing you all the expirations including zero dtes, I think. Yeah, I was. So we're still back in the past. Let me go back to our current day. So let's look at today for example. Right. So if we go into our SPX data, so today there's not a lot of Gamma expiring, only 1.9%. That means that out of all the option, the gamma exposure of market makers and the market is quite low compared to the rest. But tomorrow, for example, we have 13% of gamma exposure expiring tomorrow. So Friday. So tomorrow is going to be a very, very key expiration. And then we as we mentioned, June 20th, this is going to be very important. This OpEx third Friday of the month. And basically we have 23% of gamma expiring. So what does that mean? That means that 0dt's levels are going to be very, very important on days like tomorrow and on days like June 20th because they are very, very sensible to price change.

[00:47:39.17] - Speaker 1
So the gamma of zero DTE options are the most sensible and also they decay very, very fast because the option is expiring on the same day. So when we start seeing on the chart these like zero D levels, you know, the SP put support zero it is as we approach this level then the delta of the option changes very very fast. So imagine and up. Let's go back here. So let's say that we are here and now we have our put support zero dts. This option, this strike price right here, when the price is all the way up here doesn't have any value because the chances of the price to close here in the same day, it's going to be much lower. But as the price moves low here, then these options start to be expanded worth a lot. So that means activity now start to increase. And that's when we see the strong reaction. But at the same time, you know, now this, when we break down, these options are now Kind of like in the money. So that means that when we break this level then those hedges are released and that's why we see this strong.

[00:48:48.00] - Speaker 2
That's right. Excellent explanation. Thank you so much.

[00:48:53.16] - Speaker 1
Obviously more complicated than this. But like as a beginner trader, if you understand how to read, leave it simple.

[00:49:00.10] - Speaker 2
For the simple. Sally's right here. I made it simple. So it's perfect. Perfect.

[00:49:09.09] - Speaker 1
Let's see if we get more question. Hi, from Italy. Thank you guys. Welcome Oscar, Florida. Welcome guys. Thank you Sinan for the compliment, really appreciate that. So does it, this is a good question. Does it choose the JAX level based on the live data or past data? So yes, this would be current day. We are developing an historical API that will allow you to plot the, the historical levels. But for now this is showing you the current day and we also have intraday levels. So not only end of day, we also have intraday. So if you come into the dashboard you can actually see all the JAX changes throughout the day and you can plot the intraday levels on the chart as well. So for example, why is this important? Because again the market changes. So this would be our different snapshot. Every 30 minutes you can actually access the change in gamma and of course you can access our intraday levels directly into the chart as well.

[00:50:21.18] - Speaker 2
Oh my gosh, your server must carry so much data.

[00:50:25.06] - Speaker 1
Oh my.

[00:50:25.26] - Speaker 2
I can't even imagine.

[00:50:28.03] - Speaker 1
Oh yeah, there's a lot of work that goes on the back and we cover about 1300 plus assets. So we have futures, we have indices, we have stocks, ETFs and then we have forex. So for those who trade forex, the forex levels are incredible. We are going to do a session on Forex in next couple of weeks. But yeah, if you trade forex, we have our gamma levels and blind spots. We released them like a few weeks ago, they are incredible. So try them out. And then at the end of the month we are releasing our crypto gamma levels. So again, for those who trade crypto, be ready. This is going to be big.

[00:51:10.04] - Speaker 2
Wow. Now how are you going to use just the top cryptos or are you gonna, how are you gonna do that since there's so many of them?

[00:51:21.03] - Speaker 1
So we are gonna come up with. So the, the option data on crypto is only on the major one. So we're gonna have Gotcha, XRP and maybe another one.

[00:51:32.17] - Speaker 2
So cool.

[00:51:33.25] - Speaker 1
Yeah, so there's not, there's like, is a growing market so we're gonna probably have more crypto. But right now most of the option flow is really on those four, but we are also developing some other models for price action for other cryptos. So we're gonna have a lot of the other cryptos as well, but those are purely based on factor based, not really directly impacted by option. So, yeah, yeah, the crypto models work really well, so we're very excited. So we're going to do like a presentation at the end of the month. But yeah, so far it's been. Been very good.

[00:52:24.13] - Speaker 2
Folks. Don't forget that you can hit me up anytime with any of these questions and. And certainly Fabio makes himself available, though he's spread as thin as rice paper, taking care of everything.

[00:52:39.02] - Speaker 1
So there's a question from Tom. Tom, I believe you use bookmap. Bookmap is great. We actually have a very nice integration with bookmap. So the idea is that with bookmap, you obviously look at iceberg orders, volume, order flow, and you could basically overlay basically the data on top of bookmap. If you look, if you come to our Academy or our YouTube live, we did a lot of sessions with Scott Pulcini, who is a very, very big Bookmap users, and he's been using our levels in conjunction with the Bookmap data. So again, are trying to find an edge. So bookmap is a great tool, but on top of that, you could have an additional edge that can help you there. So we're actually going to do a session with Scott on Monday. So very excited about that. Yeah, let me know if there's more question, guys, and let me know on Marie if there's anything I missed. Like, you know, of course there's a lot of information here, but I think that this was great.

[00:53:45.23] - Speaker 2
We got. I felt like this session, we really got to dig a little bit deeper than the last time, understand a lot more about the platform and all the different ways we can pull the data out. Because really, when you first start with Men queue, because it's so powerful, you can get information overload, but it really is just like what, what Fabio says. You know, you start in the same place every day. Check your end of day, you look at those things that have changed. Most significantly, that gives you your biggest firepower. And don't, don't feel like you have to dig in all the weeds your first day. Just start in the places where you get the most impact. And he's really gone over that really, really well today. I would say, you know, rewind this video and look it over. And if you haven't tried Menther Q, you definitely have got to give it a try. It is phenomenal. I use it every single day. I tell everybody that wants to know about these sorts of things and how the options really do drive market flow, flow today and how powerful this, this product is.

[00:55:14.29] - Speaker 2
And I think of all the products out there that might do things like this, nobody does it as well as Fabio and his team. And so that's why I'm excited to get to spend time with him every other week and, and really dig down and, and look at super interesting stuff. I'm looking forward to the next time for sure.

[00:55:35.17] - Speaker 1
Yeah, yeah. And, and guys, if you want us to cover anything specific, just let us know, send us an email. Just send the subject line of what you would like to cover. We answer any email, every email. We have a team dedicated to support. So we are very, very, this is a big focus for us. So yeah, don't be shy and send us emails. We reply to everybody. And, and basically, yeah, the idea is really to help you guys understand how this data can help you. And with Anne Marie, I think it's great because I love the way you explain things when you go live with your groups and I think you've been in the market for a long time so you've seen a lot of things changing. So I think we are in a new era of finance which is going to be driven by more and more data driven tools. So I think it's important that as a trader we rely on those goes and we start to embrace how we can build our edge on the back of that.

[00:56:32.21] - Speaker 2
Yeah, certainly. And the last thing I would add is what Fabio brings to us as retail traders. This is the stuff that investment houses have had behind their doors for a really long time. And it is absolutely leveling up the playing field. 100 leveling up the playing field. We just have to learn to do the things they do best. And that is risk management. It is number one for any trader wanting longevity. And I've been trading for over 20 years and I can tell you this, if I could go back and have these types of tools and really invest in understanding what they're saying and, and managing the risk, I would not have had a curve that went straight to the floorboard and then settled down there forever before it started rising again. I can't even say enough good things about it. It's really, really important for the retail trader to know that tools like this exist at the level. They exist to put you on a more level ground to the institution. The only thing they can beat us on now is speed of execution.

[00:57:58.27] - Speaker 1
Yeah.

[00:57:59.11] - Speaker 2
And that's not. That's not our game anyway. Right. We don't. We don't care about moving something in certain milliseconds because we're able to see bigger flow and our speedboats are super fast. And what they're doing is trying to turn around an aircraft carrier when they have to turn. So we really have an edge.

[00:58:22.04] - Speaker 1
Yeah, I think. Yeah, exactly. So always think that the institutions, they cannot trade, they cannot just open a brokerage account and start trading. They move like millions of billions. So they need to be really aware of the execution. You know, the. There's regulation behind this. So they have a lot of more constraint that retail traders have, which is, again, very, very important to understand.

[00:58:46.20] - Speaker 2
This was great. Thanks so much for having me. I look forward to spending time with you. It's always fun. I'm such a nerd about these kinds of data tools. I love data, and having data explained in a really useful way is a game changer.

[00:59:07.07] - Speaker 1
I love it. Thank you, Anne Marie, and love to see you in the next one. Thank you guys and as always, send us the questions and see you guys soon.