Trading Options in Oil ETF USO | Market Measures

Find out whether the volatility index for oil, OVX, provides an accurate range in which USO will trade for a given time period! See more videos from the Market Measures Series: http://ow.ly/ECpvg Oil has been in the news a lot recently due to the large move that it has experienced. Additionally, every Wednesday at 9:30am CST, the US Energy Information Administration releases a report on the level of crude reserves held by the US. This report is considered to be an indicator of the state of the oil market. Today, Tom Sosnoff and Tony Battista take a look at how USO performs around this announcement. The guys find out that there is very little movement due to the report so they take the study one step further. First using OVX, the volatility index for USO, they find out what range oil should trade in based on its volatility. They then find out that even this range is overstated so selling premium in USO based on OVX is a viable trade! It's not always easy to take the measure of a market, whether you've been trading for a day or a decade. On this segment we look under the hood—options probabilities, volatility, trading strategies, futures, you name it—so your trading mechanics are built to manage more winners. You can watch a new Market Measures episode live and check out all previous episodes everyday at http://ow.ly/EoyGW! ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Plus, access our visual trading platform, dough, to learn the basics of options trading and manage your portfolio! With hours of tutorial videos and unique tools on a simple, easy-to-use trading interface, dough.com is here to make learning how to trade options fun! Subscribe to our YouTube channel: http://goo.gl/s2bAxF Watch tastytrade LIVE daily Monday-Friday 7am-3:15pmCT: https://goo.gl/OTv3Ez Follow tastytrade: Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/tastytrade Pinterest: http://www.pinterest.com/tastytrade/

Comments

1. Very good info for a beginner! Since IV over-estimates true volatility, does that mean that the person selling premium will win over time?