Find an Edge in the Crypto Market

[00:00:00.07] - Speaker 1
It.

[00:00:38.29] - Speaker 1
Welcome team. Welcome back. And hi Ann Marie, Nice to see you again. It's been a while, but it's been a couple of weeks. But very excited to have you here as always.

[00:00:49.16] - Speaker 2
Yeah, excited to be here. I love that intro. It's the best intro of all the YouTube shows. I just love that.

[00:00:57.11] - Speaker 1
Thank you. Thank you. Welcome guys. So today we're gonna. So this session that we started with Anne Marie is really to help everyone understand how to find an edge as a retail trader. So obviously we are kind of left behind because we don't maybe have access to all the tools that are available, we don't have access to all the data. But the goal for us at Mentor Q is to provide you that edge. And today we're gonna talk about a little bit of the crypto side and then of course we're going to look at some charts, some example with Anne Marie as well, given your experience. But feel free guys to send us any question, any comments in the section. I just want to mention also that we are running a promotion on our crypto product and on our premium membership. So just follow the link at the top and you guys can, can access that as well. Well, summary. Yesterday we launched our, we call it our crypto intelligence. And we are leveraging basically the same framework that we have for our stocks, ETFs and futures. And now we're going to take in our crypto data.

[00:02:04.10] - Speaker 1
And the reason why we did that is because I think there's a big trend that is evolving. We're still at the beginning, but I think it's very, very important for retail traders to understand what's happening in the crypto space. I just want to point out that crypto can be associated with scams, can be associated with, you know, like volatility. We are looking at assets that are actually becoming like an asset class. So like when you talk about Bitcoin, when you talk about Ethereum, those are kind of assets the institutionals are kind of embracing into their, into their allocation. So it's very important for retail traders to understand what's going on there. Here you see a chart of the growth of Bitcoin option open interest across the past three, four years. So we went up like 5, 600% on those. So very, very important. And that's also why we have developed kind of like the models and then we can go into this. But let me know, Anne Marie, if you have any questions and would be great to understand how you also look at the crypto market as well.

[00:03:07.11] - Speaker 2
Absolutely. I'm Just excited to dig into more to this and truly what you're doing. Fab. I say it all the time to folks when I talk about you. You really are getting information that institutions have kept hidden for ever and you're bringing it to the retail trader. So I love it.

[00:03:29.23] - Speaker 1
Yeah. So the way. So with the crypto world is a little bit different from the traditional assets. So what we've done is we develop our option models. So if you go into here in the dashboard, we now have the same models that you guys use for, for stocks, ETFs and indices. So here we have, for example, my watch list. I can have my crypto coins here. So I have Bitcoin, Ethereum, Solana and then these others. We also look at the three exchanges, so it's Databit, Binance and OkX. Those are basically the three exchanges with the biggest flow, probably 95% or more of the derivatives flow goes through there. Derit is still by far the largest one. So I always look at deribit as my main kind of like ticker here, you can see it here. And then what we've done is, as you can see, we have the same models that we have for our stocks and indices. We have gamma levels, of course, we have our Q score right here, but we also have our swing models. So if you guys are interested in also becoming a crypto position trader or a crypto swing trader, we also have available for that.

[00:04:54.17] - Speaker 1
It's not just the day trader that can benefit from this sort of towards.

[00:05:01.06] - Speaker 2
So if I could ask when you first. Because this, there's a lot of information here. It's sometimes it's overwhelming to the new person there. When I first come in and I go, absolutely, I'm getting on this crypto chain, it is running like a house of fire. Where do I start? What's. What's the best thing for me to do?

[00:05:24.26] - Speaker 1
Yeah, so let's go through, for example, like a routine from. We call it the crypto blueprint. For people that maybe I'm not familiar with, obviously the option market. But let's start with the market summary. So here, whenever you open the. This would be like your starting point. So here we have our crypto coins that are covered. So we do have a lot of coverage of the major ones. We don't do like the small, like small coins because again, those are more like speculative and I think there's a lot of volatility there. So we look at the main one that have substantial volume, option activity, price action. So here we have, of Course, our Bitcoin, Ethereum, Solana, Dodge coin, or you name it. So the first thing you want to look for is really how, how is the market performing? So you have one day, one month, three months, one year and year to date, right? So you see that a lot of these coins have been really underperforming the market over the past year or so, or at the BE since the beginning of the year. Then we have three new indicators that I can show you in a second, which is the qrsi.

[00:06:36.27] - Speaker 1
Similar to an rsi, we develop our own version because what the reason why we did that is because there is the concept of what we call alpha decay. So everybody uses the same signal. So therefore you don't really have an edge because everybody's reacting to the same level. So if you trade the RSI, you're buying when the RSI is below 30 and you're selling when it's above 70. There's no value there because everybody's using it. So what we did is we develop our own version similar to the RSI from 0 to 100. But now this one has more statistical validation. So we believe can be a better tool, especially in the crypto market, which is high trending, high volatile. Then we develop a directional bias indicator. So by looking at different factors, are we in a bullish trend or are we in a neutral trend? And we can look at that. And then finally the most important I think is like correlating the crypto market with the macro environment. So crypto really behave like early stage tech companies. So whenever we are in a risk scenario, the crypto tends to perform very well because everybody's pulling capital into that space, right?

[00:07:51.18] - Speaker 1
And also when we are in a risk off scenario, then typically investors are pulling out of very risky asset. So the crypto market really suffers. So what we've done is we built basically like, like a risk indicator, right? Then we can move to our quant models right here. So if we look at these here, those are the indicators as I mentioned, they are available on all these major pairs. If we look at Bitcoin, for example, here we're looking at binance, but we can look at other exchanges. So we were yesterday in kind of like we started becoming in a risk off scenario for a few days. So we were in a risk of scenario and then we bounced back. Now we're back on a response. So the way the indicator works is when we go below zero, which is this red green threshold, we are basically going from a risk contour is cough, right? So that doesn't mean go long or short, but just be cautious that we are moving into an area where there could be more volatility and there could be more risk.

[00:08:58.00] - Speaker 2
I love that. That is fantastic.

[00:09:03.22] - Speaker 1
And then of course, so if we go also here we also run some backtesting results and what you see here is this is, is available on our website so you guys can access this. But this is a strategy simply by going long when the risk on indicator is above zero and going short when the indicator is below zero. There's no, there's no really, it's very, very simple. We're always in the market either long or short and basically this is the performance of Ethereum by -50 over the past six months. This is the performance of this strategy. We saw a peak of almost 100 at this stage and then of course we kind of dropped a little bit since then but we're still kind of overperforming. Kind of like just simply buying and holding the crypto coin.

[00:09:55.20] - Speaker 2
In this case, do you have risk parameters set on that or it's just flipping from long to short?

[00:10:01.23] - Speaker 1
Yeah, there's no, we want to keep it very simple. So you're always in a trail, you're always in the market and you basically here you exit the long when the, the, the price cross. So the indicator crosses from above to below and again you actually the short when the indicator crosses from below to above. So very, very simple. We want to keep it very simple. So here is the indicator. You can access this on all the different pairs. This is really the same for all crypto because it's really a macro indicator. It's not like Bitcoin is on risk on and Ethereum is on risk off. This is really like crypto market as your own is in a risk honor scalp scenario. Then of course you have the directions so you have basically a bearish and bullish. So we have four levels, minus 1, 0, 1 and 2. If you are 0, it's, it's kind of like a neutral, there's no really signal there. If you are above one or two then you are in a bullish kind of like bias. If you are below, if you are a minus one, you are in a bearish bias.

[00:11:14.02] - Speaker 1
So again first I look at the risk on. Are we in a bullish kind of like macro environment? Then I would look at the direction. I can also look at the rsi. This is like a really cool indicator especially if you are like a shorter term trader. And then basically then I move on to the kind of option side so for example, if we look at the Ethereum, we've been in a kind of bullish trend over the past few days, few weeks. I can basically come here and open this and I can look at the option activity. So here we have our Q score. So the goal of the Q score is really helping you understand what's going on by looking at different factors. We have option activity, we have momentum, and we have volatility. So what's really interesting is that if we go back to yesterday, so we were at a very neutral option, we're a score of free, we are very high momentum, and we were kind of low in volatility. Let's go back maybe one more day and see very similar picture. So the option activity was still very positive, the volatility was kind of low and the momentum is very high.

[00:12:30.22] - Speaker 1
So what's interesting today is that now, like we have a very high volatility, the option has kind of gone down by one point and we're still in very high momentum. So we can kind of look at the different scores and see how these have changed over time. So the option activity is kind of like stalling a little bit. We were very, very bullish. So again, understanding what that means in terms of positioning can really help you, especially if you're looking to get into, into an asset.

[00:13:04.13] - Speaker 2
Can I ask you a question about that? If we're looking at something that's got this very high momentum score and a very high option score, does it suggest to us that we might trim gains or raise our stops or what's a trader? Not that it's financial advice, we're. I'm just saying, technically speaking, what should we look at when those movements are high? I'm asking this because I tend to be a trader that once price action starts getting really overheated, I have a hard time chasing the long. And so if I'm already long, I look to raise my stops and so, or, you know, sometimes just get out of the trade. But with this kind of information, what additionally might it be telling me?

[00:14:10.25] - Speaker 1
Yeah, so I think basically what you can look at, so now we have our gamma levels also on the different coins. So we can look at Ethereum, we can look at Bitcoin, we can look at Solana, so we can run our models directly on the charts. This will also be available on all the trading platforms. So I think it depends on whether you are day trading or whether you are holding position for a long time. So if you are day trading, then you can kind of use the gamma levels. That we have here for potentially understanding. So like for example, we broke through the core resistance.

[00:14:52.23] - Speaker 2
Ah, I see.

[00:14:54.04] - Speaker 1
So this could be kind of like your become, if you are in a, in a day trade, you could become an interesting area where what's going to happen if the price comes back to this level. So you, you might want to look at that. You also have your targets. So for example, if, if you are on this long and you see that the price exceeds the one, the max, then maybe you want to start looking at understanding. Okay, like maybe it's maybe a good time to potentially look at like adjusting your risk management and take profit. The other good thing is that the crypto market is typically a very big trending market. So that, that's also why it's important that we, we can also look at some of the other metrics. So if you are for example a position trader or like maybe a longer term trader, then maybe what you can also do is you can use our swing model. The swing model is now available for the crypto and what we do there is we're going to look at areas over the next five days and 20 days. So here we have our five day model and here we have our 20 day model.

[00:16:08.04] - Speaker 1
So for example, what this model is telling you on Ethereum that in theory if the model is successful, the price in five days from now should be above this 2294 level. Of course we are a little bit far from there. The asset is very volatile. So again pay attention to that. Our risk trigger is 2789 right over the next five days. Why is, why are those levels important? Because you have a statistical edge.

[00:16:39.17] - Speaker 2
Love that. Yeah, that's nice.

[00:16:42.18] - Speaker 1
So let me give you an example. So if we reach this 2789 we have 73%. So over the past 124 days the price closed below the risk triggers five days in the future. So there is 73 chances that the price could retract at this level. You could also go above that of course, but again you're trying to maximize your probability of success. On the other hand, let's say the price drops over the next few days and you see this level here, 2300, you know that in the last basically 124 days, so like six months, 87 of the cases, the price closed above this level. So again if we retract to that level, that could be an interesting area maybe to potentially look into getting into the market, for example.

[00:17:37.23] - Speaker 2
Excellent.

[00:17:38.15] - Speaker 1
If you trade with options, you can also like use those as your spreads. If you are like an option seller or an option buyer. You can also use those as your strike prices. But very, very important because they can give you like a probability of where the market could go.

[00:17:58.01] - Speaker 2
Thank you for that. Really great description. It's good.

[00:18:03.07] - Speaker 1
Yeah. And then the other are more like an advanced option model. We're going to talk more about them on Friday. We have a SKU model. SKU tells you, like, are people expecting a high move on the call side or the put side? So if you are willing to pay more for out of the money calls, it means that you are potentially forecasting that there could be a higher move to the upside. So the SKU basically looks at out of the money options and tells you like if we are in a kind of.

[00:18:33.26] - Speaker 2
So if I could, if I could ask that a little bit more direction on this skew chart, when we see this pullback here, like we do right now. Yeah. Explain specifically what's happening with the option traders when it gets into these spikes and begins to roll over. Is it telling us that. Is it sort of like the edges or boundaries of the event or is it telling us there's a volatility expansion event on the horizon?

[00:19:13.03] - Speaker 1
The way the SKU works is like we look at 25 Delta calls and puts and we look at the volatility, the implied volatility of those and we calculate basically our SKU model based on that. So when you look at the SKU here, like at this level, people were probably worried. It was a few days ago, maybe there was news catalyst about, you know, whatever the, the war or the tariffs. Basically, if you are like an investor, think about, you don't want to lose your profit, so you start protecting yourself. And you do that by buying or selling put options. Right. And the volatility of the top of those options as a price. If you are willing to pay more for puts versus coal, and if you're willing to pay more for puts that are far out of the money, if means that you are expecting a very strong price move. So you are willing to pay a premium for that and you're willing to basically pay more for that kind of volatility. So essentially it tells you where the market is thinking the price could be by looking at out of the money option, which really tells you where is the sentiment?

[00:20:27.13] - Speaker 1
Not close to the price level. But what is the market thinking that the price could be okay, for example, if there's a very. So if, if the market thinks that there's going to be a very strong move on the NASDAQ on Yes, they might start buying far out of the money calls because they think that in a very short amount of time there could be that move. So they're willing to pay more for the volatility at those level rather than the same delta on the put side.

[00:20:56.16] - Speaker 2
Right, okay. So it's a measure of their mindset about volatility expansion.

[00:21:05.05] - Speaker 1
Yeah. And also like it's always good to think about the option market as a sentiment indicator.

[00:21:10.04] - Speaker 2
Yeah, yeah, yeah.

[00:21:11.08] - Speaker 1
Technical analysis is backward looking. So we are looking at past price action forecast, what's going to happen in the future. The option market is forward looking. So we are basically positioning ourselves for what could happen in one month, three months, six months, because options have an expiration. So if they expire and they are out of the money, we are losing our, our premium that we, we paid for. So the reason why again, the option market is very important because it tells us a lot of interesting information. And again, as a retail trader, if you don't have access to this data, you're kind of missing a piece of the puzzle. Right. So you're relying on indicators that are providing you an idea but with no statistical edge. So like we run an analysis, there's no statistical edge on using RSI that you know, everybody's using it, so you're not going to be able to get an edge. Maybe you do have a very successful strategy. But again everybody's looking at the same information so there's not a lot of edge that you can build on that.

[00:22:15.12] - Speaker 2
Excellent.

[00:22:21.15] - Speaker 1
Yeah. And the cool thing, I think you mentioned before that you also trade using futures.

[00:22:26.16] - Speaker 2
Yes.

[00:22:27.01] - Speaker 1
The cool thing is that now you can actually leverage not only the. So we do have levels for MBT for example, which is already, has already been available for quite a long time. But now you can also overlay that with, with our bitcoin cash level. And the reason why this is important is because the largest volume of option on crypto goes on the cash side, not on the future side. So there's not a lot of volume on options on futures, but we do have a lot of volume on options on cash. So that's why also we developed this. So here for example, now you have your gamma levels on the future which have the ones without the brackets and then you also have the gamma levels on the coin. So if you look at this very, very good reaction area, this is using the JAX level coming from Bitcoin cash. And if you just want to.

[00:23:36.10] - Speaker 2
Just.

[00:23:36.16] - Speaker 1
Show the, the cash level on, on the future here you just have, you know, the bitcoin levels. And again, very interesting.

[00:23:46.25] - Speaker 2
Yeah, very nice, Very nice. Yeah, yeah, I saw that set up this morning for the potential short at 110,200 today, and it was absolutely pinpointed by men or Q levels. So it's really nice.

[00:24:06.05] - Speaker 1
So this could have been a nice, nice move down. Yeah.

[00:24:11.25] - Speaker 2
Yeah. I really like trading the micro bitcoin futures. They're fluid. You know, you can lever up just a little bit once you're getting yourself together, or you could start small so that you can understand the mechanical flow. It's a great place to get your feet really entrenched in. Do I understand what's happening with these gamma lines? Do I understand how to use them? Do I understand where my profit margin needs to be and all that sort of stuff. And it's a great place to trade small and really focus in on the mechanical elements that men are. Q has. You know, the, the really great thing about this platform is that it's so comprehensive, but at the same time, a lot of times when we come in, we see something like this that is so powerful and so expansive that we can get overwhelmed. Just pick one product and focus down and you'll be able to see how absolutely beautiful these things work. You just have to give it your attention. A lot of times, you know, we're really bad with our attention spans, but the more attention you give this, the more reward the. The platform will give you.

[00:25:46.05] - Speaker 2
And I absolutely speak from experience. Absolutely. This platform that Mentor Q has just delivers extraordinary information. Yes, it's a lot. But pick one thing, don't be like a squirrel looking for 52 nuts. Just go after one thing and understand the process and this will pay for itself in no time flat.

[00:26:16.22] - Speaker 1
No time flat, yeah, exactly. And I think the, the key part is that we can also look at, if we look at indices and we have a very great coverage there. But understanding, again, how this thing changes, if we look at spx, for example, understanding, even just looking at this, you can immediately see, hey, we're still in a very positive environment. We are in positive gamma. We are very strong on the option side. Of course, there's a lot of things happening. You know, every time Trump speaks yesterday, there's big activity on copper.

[00:26:54.02] - Speaker 2
Oh, my goodness. That move was extraordinary, wasn't it? And they didn't even tell us when it was going to go into effect. You just saw tons of front loading into the futures contract. So that's going to be fascinating to watch. Super fascinating.

[00:27:13.06] - Speaker 1
And also, like, for those who are trading futures, we cover about 25 different contracts. So if you come here, we have, you know, like commodities, forex indices, soft commodities, you know. So like, if you look at copper, we, we do have it like right here. So you, you could access that. So again, you can look at positioning on there. So if you want to understand, okay, what's the market thinking again, we, we have, let me see, We have our copper future here. You have your, your gamma levels, you have the option chain. You can understand what's going on. So not all the data is available for futures, but you do have basically also the camera levels. Right, right down.

[00:28:11.20] - Speaker 2
You know, this converts on a side note, this sort of move converts very nicely in. Wow, Bitcoin is really taking a move down. This is the, the type of move that happens where you can literally, if you trade stocks, you can say, show me all the copper stocks. You know, we only have three smelters in the United States. And so the rest of the pump forward is going to be how fast can we get these guys to ramp up and what can we do? So there are a lot of things that the futures market can tell you, even if you don't trade the futures market that you can step in and start looking at other things. And then Manther Q will help you pull those pieces together. Right. In terms of taking a look at the. Any stocks in the S&P 500 that might be, do that, like Freeport McMoRan, you know, FCX and, and those sorts of things.

[00:29:13.23] - Speaker 1
Yeah. And I mean, we do have about 1300 stocks plus futures crypto indices. So like, yeah, most likely the asset that you trade is going to be covered. Like, everybody's looking at Nvidia and Max 7, all of that stuff. So understanding also what's happening there can really help you. And also, like, you know, just take a look at this, right? You know, you see a big change in the score. This was like a couple of months ago. We were very, very bearish. And suddenly in a day or two, we went very bullish again. This was 40, 50 move just in the last couple of months.

[00:29:58.09] - Speaker 2
Yeah. You know what else this really is a great example of? If you're staring this down and you look at the option score and you're thinking to yourself, Nvidia is way too high. It's got to roll over. Pardon me. I'm good. Sorry. This, this option score here tells you, hey, you're stepping in front of a moving bus. If you think that you want to short this right now, it's just not telling you that that's the right thing to do. So absolutely love that.

[00:30:29.10] - Speaker 1
I, I mean, also, like, if you look at this, you know, this was kind of like maybe 10% move or something. So you, you would see. So I always look, when I look at the Q score is not only looking at the number. So don't just focus on, oh, we are five or we are, we are three. Actually look at the delta. So how has this changed versus the previous day? So when you add this move from 5 to 0, this tells you, hey, something is going on. This was when obviously there was a lot of news in the market about tariffs and all of that stuff. But suddenly, you know, this triggered a very strong price reaction. Then suddenly more news comes out and then this triggers another price reaction here.

[00:31:14.14] - Speaker 2
Yeah. So we can sort of use that as a stair step model. That tells us that the option pressure is building on a bullish side and we can sort of walk that up the chain. I, I like that.

[00:31:27.10] - Speaker 1
Yeah. And also, like, I think we touched base on this last time. We also have screeners that can allow you to find those assets if you're looking for trade ideas. If you're looking like, just give me an idea what I can do today. Let's go over like maybe some of the screens. So the highest option score increase here can tell you basically what are the assets that have seen the biggest change in options. For example, Tesla had an increase in option score of 2 compared to the previous day. So it was very bearish. Now we are at two options score. If we look here, JD.com had an increase of three. So we are now kind of like in a very bullish option score at 4. We were at 1 the previous day. So you can kind of like click on the stock and basically also look at the same information. So we now, we're still in a kind of bearish trend. The options score has kind of changed higher. So again, monitor it, understand what's going on. And then of course, you can plot the gamma levels and, you know, understand where we're doing that.

[00:32:41.24] - Speaker 2
So is it, is it right to look at the scoreboard first and say, all right, what, like where you've got it highlighted first you look at momentum to see where the shift is potentially coming from. And do you notice whether things can peg a long time at one? Can we is. So for instance, let's say I wanted to isolate a reversal trade.

[00:33:12.20] - Speaker 1
Right.

[00:33:13.12] - Speaker 2
Could I look at the low momentum scores and then watch for a change?

[00:33:20.04] - Speaker 1
Yep, of course.

[00:33:21.04] - Speaker 2
To go from one to two or.

[00:33:23.01] - Speaker 1
Like example, what we want to look, if we take the example of Nvidia, like now we are in a very, very bullish trend on the stock, the option side and both from the momentum side, the volatility is very low. So overall kind of at the market is positioned for, for an upside move. You look at the net jacks, there's not really almost any kind of like strong negative gamma on the put size. So there's nobody really buying puts on Nvidia I would say.

[00:33:54.27] - Speaker 2
Right?

[00:33:55.14] - Speaker 1
Not that there are not but like overall the market is really small amounts.

[00:33:59.11] - Speaker 2
Yes, yes, yes.

[00:34:00.15] - Speaker 1
Again if you are thinking of shorting this, you would probably want to wait until something kind of changes, increases because maybe like something is happening. So again like that's the way I would.

[00:34:18.06] - Speaker 2
I like that, I like that. Another way to use the tool.

[00:34:22.06] - Speaker 1
And on the other side, if you're looking at reversal then yes of course you could basically look for example at the lowest, for example lowest momentum score and you can come here and see, okay, like we are a zero on some of these assets. So like you know, Baba Adobe, you know like Lockhead Martin, like so you could kind of like then look at that. So if this is a company that you like, then maybe you can come here and see okay, what's going on there. So we are very bearish on the option side, we are very bearish on the momentum side. But volatility is very low. So like this is kind of like, kind of like a divergence there.

[00:35:03.22] - Speaker 2
So again, oh, so low volatility normally will move with trend is what is what you're saying. So if the volatility is high and it's bearish, then it's probably going to stay short.

[00:35:20.09] - Speaker 1
So typically when we see a high volatility it means that market is really kind of thinking there could be a very strong move and there could be like very. And doesn't mean that the stock is going to go down necessarily. But when you see a low volatility it means that maybe things have stabilized a little bit.

[00:35:40.11] - Speaker 2
Ah, gotcha.

[00:35:42.14] - Speaker 1
Like a sign that like you are. When you are in a trending market typically volatility is very low. When you are in a non trending market then volatility is high because people are trying to protect themselves or like hacked on on the on maybe played with option and all of that stuff. So like for example this case here, what you want to monitor is any change on Discord for example and any change on discord to the apps. So we're very, still very low momentum. But again you also See it here we have fund resistance coming from technical analysis, so that could be an interesting error. And then you can kind of like use our gamma levels as well to understand.

[00:36:32.07] - Speaker 2
Excellent.

[00:36:33.08] - Speaker 1
So on the string model we're still kind of in a bearish, bearish bias again on this asset. But again, monitor the change here because things could really change fast. And understanding all the other stuff as well.

[00:36:49.06] - Speaker 2
Excellent. All right. Yeah, that makes good sense.

[00:36:55.18] - Speaker 1
So there's a couple of questions. Let me answer those. So, Steve. Yes, we are going to add blind spots. Don't have a timeline yet, but the team is working on it. We're also going to add blind spots on major stocks and ETFs, so stay tuned for that as well. That's going to be very interesting.

[00:37:16.22] - Speaker 2
Fabio is trying to clone himself actually, so he can spread thin. A lot going on.

[00:37:29.11] - Speaker 1
Then we have looking forward to trading in Transpider. Yes. Like the transpider integration is live and is actually really amazing because within Transpider you can also leverage the power of their screeners, the power of their watches. So you can actually screen live via gamma levels. You could actually get real time alerts when a certain level is hit. So we have the integration here is available.

[00:37:59.19] - Speaker 2
That's absolutely fantastic. I'm telling you they are. It's a game changer. Having Mentor Q inside of Transpire. It really, really is because you literally can say, hey, set me alert on this high volume node or tell me when it hits, put support or anything like that so you don't have to be staring your charts down the whole time.

[00:38:23.17] - Speaker 1
Yeah. And also we update that via API so it's obviously you can access all the coverage that I can transpire there is very, very fast and then you can also do the screener. So very, very excited. We're also going to do more, more with them. So stay tuned. Where we're going to develop a lot of more interesting stuff there. So we're excited. And we're also going to run some events in the next few weeks as well. And then another question. Would you say the option score is still, still backward looking? No, the, the option score is forward looking because the option market is really looking at the future. So that's why we use options because they are like forward looking indicators that can tell us where the market expect the price to be. So yeah, hope that answer the question.

[00:39:20.12] - Speaker 2
What do you think about this big Nvidia move today? It's very, very big.

[00:39:26.19] - Speaker 1
Yeah. I mean it's following the trend, you know, the AI trend. I think there's Obviously there's, it's always important to understand like also the correlation like between assets. So if we are working, if you are living in an AI trend and of course the companies that are involved there are going to be benefiting from that. And Nvidia of course is at the forefront of all of that trend. So I mean the move has been crazy. If you, if you look at the past two months, like I know 100 ordinary 60. So yeah, for those who trade Nvidia, congrats.

[00:40:09.13] - Speaker 2
Those who trading long Nvidia congrats.

[00:40:20.07] - Speaker 1
Yeah. And yeah, let us know guys, if you have any other question for me for Anne Marie and what, what have you been trading like recently? Of course, like the, the problem with this volatility is that if you are a scalper or like a futures trader, it's been probably challenging times because the price moves so much. So how do you kind of like approach this market? And, and what do you look for?

[00:40:49.11] - Speaker 2
You know, that's a great question. So when I look at the market, the big thing is every day I come in and I go, wait, did I make a higher low? Did I make a higher high? And did I close above the prior day's close? And we have had about 10 days of upside pressure until about two days ago. Right. And so the, the new high was made on July 7. And that was kind of a. Was that. No, not seven. July sec. Third. Third, yeah. And that was a half day. And so a lot of folks were saying, hey, you know, that's really kind of a. Not really the number we're gonna have to make it again during regular, a regular trading day. But when the market moves up so many days in a row, it normally has a tendency to either revert to a mean or rotate sideways. And so for, since what is today? The 9th? So on the 7th we had a big candlestick. The 8th and the 9th we're still inside of that 7th candlestick. Right. The day move off of that edge. Yeah, that one right there. It just puts us right in that center space.

[00:42:12.29] - Speaker 2
I think the market's in a wait state. When the market's in wait state, I'll look for the lower dex levels that work with visible support. I'll watch for inventory accumulation, which is the sideways pressure that you can see on the chart where we see visible support and resistance. And if it breaks out, I'm going to trade in that direction. If it stays inside, I'll trade to the bottom of the channel. But it's very much quick strike right now. And so I think we are sitting in the ES right now. We're sitting at a very important level. I think it's around 60 to 82 ish. And when we look at something like that, it tells me, do we have any gamma lines around there? Yep, yeah, yeah, yeah, look at that beauty. So that line right there is literally an above, below line for the traders right now. And this morning so many people, I think a lot of people went short in the overnight and they started getting squeezed in the early morning and then they shorted as soon as the market opened and then they got their faces ripped off. And so that's really what we're staring down because in general we're looking at price action that is compressing in a region and coiling, waiting for the next big move.

[00:43:47.07] - Speaker 2
So when I sit in a space like that, I always look for can I see clearly where buyers showed up? Can I see clearly where seller shows up, show up? And is there a GEX level that I can look at and go, okay, that's showing me the combination of what the option chains are doing and what price action is doing. And it gives me a lot of confidence about positioning into a trade in one direction or another. It also tells me very quickly if I'm right or wrong. And that's something as a trader. As we develop our skill, a lot of times we don't want to get out of a trade when price action begins to move against us because we start thinking things like, well, maybe I'm just a little early, maybe I'll move my stop a little wider, maybe I'll. All these things that we tend to make soft when they should be hard because the number one thing to do is manage risk.

[00:44:59.00] - Speaker 1
Yeah. And I think the other important part, and we can show an example is also look at the intraday stuff. Right? So here what we see and there was a very good use case from, from yesterday. Right. So we have our intraday levels and we also have for example, our what we call jax difference. So here we have 10:30. Here we have, okay, so Jack's difference from the previous snapshot. So here you can kind of see basically like. So this is kind of interesting. So here we have our 10, 10am So 10 Eastern snapshot versus our 935. So after the open we've seen an increase in positive gamma of here. And then at 10:30 we actually now have a very strong decrease. Wow.

[00:45:58.06] - Speaker 2
Oh my goodness. I did not realize that was sitting there. That's in the intraday tab.

[00:46:04.08] - Speaker 1
Yeah, interesting. So if you look at like, like this, you, you have obviously that we have a strong move at the beginning and then from 10 to 10:30 we have kind of like negative move here. And yesterday I think there was also at this level here we saw a big shift in gamma intraday right at this moment at 12:30. So the 12:30 snapshot that basically caused this kind of move to, to go lower. So I think very, very important look at the intraday stuff and you can also have the intraday levels on the chart. So if we look at intraday, just update the indicator and now we have our intraday updated 10 o'. Clock.

[00:47:00.02] - Speaker 2
All right.

[00:47:01.27] - Speaker 1
So a lot of, lot of really cool things available is just a matter of course digging in. I'm helping you guys learn all of these. But yeah, let us know if, if there's more questions please space in the comment again. And I don't know if you have other question you, you want me to answer, Annmarie. That could be beneficial for our audience.

[00:47:27.24] - Speaker 2
You know, there's a, so here's a good one right here for the spx. Let's say I saw the, the loss of this Gamma line at 6250 here and I come into my old resistance level. In your, in your experience, do we normally fill this gap into the high volume node for the zero DTE? Like, like I see it coming in maybe 6230. Or is it sort of half and half between old resistance from the prior day's congestion into new support? Does it depend on that flow intraday that you like to look at? So we saw the flow shift. For me, I would look at that flow level and go well I'm, I'm staying short.

[00:48:26.23] - Speaker 1
Yeah. So I think it's a great question and I think it's very important to understand the, the magnitude of what 0 these options can do. Right. Because when we see these strong moves, most likely it's been driven by dealer hedgings in many, many cases. And the reason is that like let's imagine that we are opening higher here and throughout the day the price moves high. Those options that sit at 6230 that are expiring today at this time of the day are worth nothing because the price is an upward trend and the chances of the price retract into the to this area is going to be very low at that point in time. So there's not a lot of pressure on dealer hedging at those levels because the delta of this option is very, very small. So there's not a Lot of activity that goes into that. Let's say something happens and this was also. There must have been some sort of news catalyst in the market there. Let's say that this move happens. Then suddenly the Delta of these 0et is options start to increasing. Maybe they were at a 10 delta, now they're getting at a 20%, 30%, 40% as the price moved down.

[00:49:44.00] - Speaker 1
So that means that the edging flow has to increase because of the delta of those options. So these options are becoming now worth something. And if you trade this option here, so if you probably bought a put at this level when the price was up here, the cost of that put would have been probably almost zero. The that put would have probably gone up like hundreds of percent and you probably. So then on the other side you have to understand that as this price moves down, these options start to really become very valuable. And on the market making side that means that they are risking more capital, so they need to hedge more. So that's why we see sometimes around.

[00:50:31.07] - Speaker 2
So that loop, that self fulfilling loop moves because they are moving short with the market in order to shift their delta.

[00:50:40.20] - Speaker 1
Exactly. And also like it's very important, especially if you are a future trader that you don't look at option, you need to understand that the dealer hedging happens in the future market. So most likely when you look at SPX, dealers will hedge with futures. So option flow creates future flow. So like even if you don't look at option, you cannot be not pay attention to this because this is going to move the price of. Yes. And most likely it's going to be driven by hedging flows that are going into the market.

[00:51:17.05] - Speaker 2
Very good, Very good.

[00:51:19.24] - Speaker 1
Yeah. So, so I wouldn't be surprised if we kind of hit this level today. But let's see.

[00:51:29.07] - Speaker 2
All right. Wow, that was very informative. It was very, very informative.

[00:51:34.13] - Speaker 1
Yeah, yeah. So let us know guys, again we're gonna, we have five minutes left. We're gonna.

[00:51:42.08] - Speaker 2
Thank you so much for having me, Fabio. I appreciate it. I love getting to spend time with you. Talking over this product is so much fun to me because it's just, I feel like a kid in a candy store because there's so much fun stuff to look at and of course that's because I'm a nerd, but nevertheless, I still love it. It's super helpful for trading.

[00:52:04.25] - Speaker 1
Yeah, yeah, absolutely. And yeah. So let us know guys if you have more questions, if you have more questions about anything we talked about, if you have questions about our crypto intelligence platform, Please let us know. This week is going to be focused around crypto, so we're going to spend a lot of sessions on it. If you come to our YouTube live, today, we're going to be live with Patrick talking about blind Spots. There was a couple of questions about it, so we're gonna talk about it in great details. There's been a lot of, like, upgrades and a lot of, like, new things that have happened with blind spots, so we're going to be talking about that. We're gonna have two sessions tomorrow about crypto and Forex, so don't miss those because we have really great guest speakers as well. And then on Friday, we're going to talk more about kind of options on crypto as well. So stay tuned. And if you want to learn more about what we do, just come to our website, mentor Q.com and again, if you want to try it out, we do have a promotion going going on until Monday, So great time to join.

[00:53:14.11] - Speaker 2
Absolutely. Thanks again for having me.

[00:53:17.18] - Speaker 1
I appreciate it, Maria. And see you. See you soon. See you in a few weeks.

[00:53:21.20] - Speaker 2
Yeah, absolutely.

[00:53:23.15] - Speaker 1
Bye, guys.

[00:53:24.00] - Speaker 2
Take care, everybody. Bye. Bye.