Here's how you can track oil price volatility using options implied volatility ...Middle East

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Heres how you can track oil price volatility using options implied volatility

The CBOE (Chicago Board Options Exchange) Crude Oil Volatility Index is referred to as OVX.

It shows implied volatility of options on United States Oil Fund (USO).

    tracks 30-day expected volatility in crude oil prices, derived from the pricing of USO options — similar to how the VIX measures expected equity volatility from S&P 500 options.Higher OVX values indicate greater expected oil price swings (volatility) Lower OVX values suggest more stable expectations for oil pricesApplies the VIX methodology, meaning it doesn't assume direction — it simply measures the magnitude of expected moves.

    Its useful right now as a gauge of uncertainty in oil markets given Middle East war escalation risks.

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    It can be accessed on the Trading View website, the code is OVX, here is a direct link.

    This article was written by Eamonn Sheridan at www.forexlive.com.

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