Morning Routine and Market Analysis Lesson

This lesson walks you through establishing an effective morning routine for market analysis using MenthorQ’s tools and data. Whether you’re new to the platform or looking to streamline your pre-market preparation, you’ll learn the exact steps to get fully informed about your chosen asset in just a few minutes.

Your morning routine starts with building your trading view levels directly from the bot. Simply copy the text and paste it into your chart to instantly see your key levels for the day. The second critical step is checking the liquidity regime to understand whether you’re in a positive or negative gamma condition, which determines how volatile the day is likely to be. This is essential because you always want to trade on the right side of volatility—if your strategy benefits from volatility, you need different conditions than if you’re selling options and want low volatility.

Next, you’ll examine the key level table to identify primary levels including the core resistance, put support, and the ivory level, which represents the volatility shift between positive and negative gamma. You’ll also want to monitor your distance from these levels. Then review the net gamma exposure to understand whether the market is positioned more on the call side or put side, followed by analyzing volume and open interest to identify where big open interest nodes are located.

The matrix simplifies the complex option chain by showing you exactly what matters for your time frame. For example, if you’re planning a seven-day trade, the matrix shows how much gamma is expiring, how much delta is expiring, what the ratios are, and importantly, the levels for that expiration and the expected move. Based on forward-looking volatility, the model can forecast that price will stay within a specific range—such as plus or minus nine points on the SPY from now to a given expiration date.

We provide a mentor queue setup guide and a get set up with mentor queue in less than five minutes documentation to walk you through each step. The channels follow a specific order for a reason, so following that sequence helps you build a comprehensive view. Additional documentation is available on our blog under option data, including guides on positive and negative gamma. Once you practice this routine, it takes only one to three minutes to get the complete big picture before the market opens.

Video Chapters

00:00 – Introduction to morning routine questions
01:26 – Step one: Building trading view levels
02:06 – Step two: Understanding liquidity regime and gamma conditions
04:27 – Reviewing net gamma exposure and key levels
05:32 – Using the matrix to simplify option chain data
07:45 – Building your two-minute morning homework routine

Key Takeaways

Start your routine by copying trading view levels from the bot directly into your chart to see key levels instantly
Understanding the liquidity regime (positive vs negative gamma) is critical for knowing if the day will be volatile or calm
The matrix simplifies the option chain and forecasts expected price ranges based on forward-looking volatility for specific expirations
Following the channel order and using MenthorQ documentation helps you complete your morning analysis in just one to three minutes

Video Transcription

[00:00:00.10] - Speaker 1
Yeah, and I have also some, some question for Fabio because we get this question very, very often and I think Fabio, you, you are the good one to explain this. So what routine is a good routine for, for someone who is maybe new with our mentor Q and how he can, can start. So what should maybe for example he trading the, the spy. So, and he will be completely informed about the spire. So what steps he should do that this doesn't cost so much time, but he is well informed.

[00:00:38.14] - Speaker 2
Yeah, absolutely. And this is like. Yeah, we got a question actually today as well about this. So again this goes into the steps that we have. So first of all, we have a mentor queue setup guide that will go through exactly what Patrick is asking. So step by step, like what data do you provide? Why is important. How should I start? Right, you know, so step by step. But essentially the answer is if you find an asset that you care about and is part of the channels here, for example, the spy, take a look at the data that is available there and also take a look at the order. So like there is a reason why we follow a specific order there. We also have another documentation here which is very helpful, which is get out, get set up with mentor queue in less than five minutes. So let's go through, let's go through this. So essentially, Essentially you can find. Basically. Actually this one is. Yeah, this one. Okay, so there's a video. So step one is you want to build your trading view levels. So again I can go on the bot, I can look at the trading view levels, I can copy this text, I can put it into my chart.

[00:02:06.08] - Speaker 2
So I can go here and I can, let's put it here. So now I can go to spy. And now I have my levels for the day. Right? So that's step number one. Step number two is looking at the liquidity regime. So it's very important to understand the difference between positive and negative gamma and how that could change the volatility of your asset. So again, you always want to trade in the right side of volatility, right? So you always want to know is it going to be a volatile day or is it going to be like a non volatile day? Right. So again, for the strategy that Patrick is doing, he wants volatility, he is benefiting from volatility. But if you are selling options, then you want volatility probably to be low because you want to like benefit from the passage of time. Right? So based on the strategy, the next step is to look at the liquidity regime. So we are in a negative Gamma condition. So in negative gamma market makers hedge differently than in positive gamma. So you knowing that is very important. Where can I find out about this? So we have documentation here.

[00:03:18.25] - Speaker 2
So if you go on our blog and you go under option data here you have positive and negative Gamma. There's a guide really dedicated to this concept. Very important. Understand if the day is going to be volatile, how much can we expect the market to move today? Is it going to be more volatile than yesterday? And so on. How is the implied volatility versus the historical volatility? Then we want to look at the, the main charts. If we go back to our, our documentation then we want to look at the table, our key level table, right? So we can go back on our, on our chart. And here we have the key level. So we know that we have the primary levels which is the core resistance put support. I will. We want to know where they are. We can always see them here directly in the chart on trading view. We also want to monitor our distance. We are from the ivory level which we can find here. The ivory level is really the volatility shift between positive and negative gamma. And then we want to know the open interest and Jax and so on.

[00:04:27.29] - Speaker 2
So you can learn more about this as well. Then the next step is understanding our net gamma exposure and what are the levels that are going to be a reaction actions on. Is the. Is the market, you know, position more on the call side or is it position on the. On the put side? Very important. Then we can monitor volume and open interest. We want to know where the big open interest nodes are. You know, this is what we do all day. We want to understand, okay, are there a lot of open option on certain strikes, right? And where is the volume coming from? IV Open interest. This one is another important one. You know, we want to monitor implied volatility versus open interest. We want to see if there is a lot of implied volatility for certain strike prices and so on. So these are all models that you can access directly through here. Just by scrolling down. They follow an order. So you know, follow the order with it, understand the data. We also want to look at the matrix and example, I'm going to give you like a really nice trick. So the matrix is really simplifying the option chain, right?

[00:05:32.28] - Speaker 2
The option chain is very complicated. Maybe you don't want to know everything about the option chain, but maybe you want to know the key point which is really I'm doing a seven days trade. What should I be looking for? Like what is the market doing in those seven days. So we simplify this for you. We tell you how much come is expiring in that expiration, how much delta is expiring, what are the ratio, what is the volume. And then you also have very important points here which are the levels for that expiration and the move for that expiration. So again we can forecast based on forward looking volatility that the price will stay between plus or minus nine points on the spy from now to the 31st. So again, it's not really telling you. It's really like trying to forecast the volatility for that expiration. Right, that's what the model is trying to do. So again for you is a very important clue because if you know that there is a high, high correlation of that, then you can kind of like monitor your strategy based on, on those data points. And then term structure, this is a bit more complicated.

[00:06:40.22] - Speaker 2
And then you also want to go into more of the systematic models so you want to follow the liquidity. We have CTS models, again, we have more documentation but essentially, you know, those would be the steps that you would take if you started with us and if you like, you look at the asset and you start using the models.

[00:06:58.26] - Speaker 1
Yeah, that's a good point. And, and this is how you can build also some morning routine. It needs maybe for you in, in the future, 1, 2, 3 minutes and you get the big picture and you have the big picture on your mind. This is for example, what I'm doing every time what Fabio is, is saying with the vix because for me as, as a futures trader the volatility index is very important. I think it's much more important than to have the QQQ or, or the NQ options information. So the WIX is for me the leader and, and it needs only two minutes and champs, you have to do your homework. And if you ask for a routine, this is a highly recommend routine.

[00:07:45.12] - Speaker 2
Yeah.