Tuesday, July 15, 2008

CBOE Launches "Oil VIX" (OVX)

Today the CBOE launched an "Oil VIX" (OVX) based on options on the USO crude oil ETF.

According to the CBOE press release, the exchange is in the process of expanding their volatility index product line into commodities and foreign currencies.

I think this is an exciting development that just happens to fit nicely with several chapters in my upcoming book.

I'll have a lot more to say about the OVX and other CBOE volatility products going forward.


Anonymous said...

I like your site. I know it requires a lot of effort.

Have you heard anything about FUTURES for the Oil VIX? If so, do you have an idea of the time frame of when they'll be offered?

Have you heard anything about a "Treasury Note VIX" and possible futures on that "VIX"? If so, do you have an idea of the time frame?


Bill Luby said...

Hi DollarBill,

I have not heard anything about futures for the Oil VIX or any sort of Treasury Note volatility index and futures for that index.

If I hear anything related to either subject, I will be sure to note it on the blog.



Anonymous said...

how does a bottom form when everyone, yes everyone, knows how to spot one?

i was actually calling for a short term bottom 3 weeks ago and ive held onto that belief for 3 days straight

obviously i was wrong to be ahead of the vix

but at this time, i wouldnt be surprised to see a 40 reading on the vix

a 30's reading is too convenient and overly advertised everywhere

Anonymous said...

Anon @ 3:21,

I agree with you 100%. Sorry about that.

Poeple are looking at VIX levels as an absolute, but it is not an absolute. Implied volatility is always relative. 20, 30, 40, etc., it's all realtive. People need to be careful when drawing a line in the sand at a specific number.

That's my .02USD or .01BP.


Anonymous said...


Everyone has always known how to spot every bottom. The issue is accuracy.


JMD said...

Bill love the site, I'm an avid reader...I'm interested in your future book or previous books you have authored. Please advise, thanks!

Anonymous said...

Hi Bill,

As an old grey beard commodity futures trader, I am amused that "they" came out with an oil "VIX" at a probable top. Most of the famous futures contracts came out at the time a lot of big boys (commercials and large traders) needed to hedge a lot of inventory.


Belz said...

Probable top?! Oil is going for 200, 300, 400$ per barrel with peak oil.

Bill Luby said...


Thanks for your interest. This will be my first book.

I'll try to provide a discreet heads up when it comes close to publication.

So far the process had been an educational one -- in a very positive way.



Anonymous said...


Fred said...

SemGroup bit the big one with this. We loved that company and its community spirit but it is bankrupt now, and people are being laid off in large numbers. Speculators and good business don't need to cross paths.

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