USO Archives - Cboe Blogs

  • Market News | Oct 19, 2015, 11:50 AM

    Weekly Market Outlook - Things are Pointed in a Bullish Direction

    Weekly Market Outlook - Things are Pointed in a Bullish Direction

    Despite the wobbly start last week, the bulls took control again on Thursday and Friday to push the week back into the black. The move has yet to clear all the major hurdles that could prove to be technical problems, but at least things are pointed in a bullish direction. On the flipside, stocks may have already walked back into a valuation headwind. We'll weight it all below after taking a close look at last week's and the coming week's economic news. Economic Data Last week was pretty[...]

  • Blogging Options | Mar 31, 2015, 7:50 AM

    Blogging Options: CBOE Morning Update 3.31.15

    Blogging Options: CBOE Morning Update 3.31.15

    Oil down ~$1 and European shares lower (FTSE -1.5%, DAX off 1%) set the tone for the last trading day of the quarter.  Lots of economic data early this morning.  Case-Shiller  before the opening, then Chicago PMI and Consumer Confidence.  VIX with modest futures trading in early session.  Volatility as an asset class Conn's (CONN) is down $0.79 to $27.88 in the preopen after the furniture retailer reported Q4 profit fell 44% on a 18% increase in revenue. April call option[...]

  • VIX | Blogging Options | Trader Talk | Mar 26, 2015, 12:00 PM

    CBOE Mid-Day Update 3.26.15

    CBOE Mid-Day Update 3.26.15

    Volatility as an asset class Accenture (ACN) is recently up $6.21 to $94.42 after the consulting company raised its growth target.  April weekly call option implied volatility is at 23, April is at 15, May is at 16, August is at 17; compared to its 26-week average of 19. Five Below (FIVE) is recently up $3.81 to $36.02 after the teen focused retailer reported Q4 profit rose 34% and plans to continue its rapid expansion. April call option implied volatility is at 36, May and August is at 35;[...]

  • Technical Analysis & Charts | Mar 17, 2015, 11:58 AM

    OVX Index Rises to 56.93, as Crude Oil Falls to 6-Year Lows

    OVX Index Rises to 56.93, as Crude Oil Falls to 6-Year Lows

    On Monday the CBOE Crude oil ETF Volatility Index (OVX) rose 2.37 to close at 56.93, and  a New York Times article noted that – “Oil prices fell to six-year lows on Monday in the face of concerns that a glut in the United States was outpacing already-brimming storage facilities. … On Monday, the price of West Texas Intermediate crude, the main United States benchmark, fell about 2 percent to about $44 a barrel, a six-year low, while Brent crude, the international benchmark,[...]

  • Market News | Trader Talk | Mar 13, 2015, 9:16 PM

    Block Trade Analysis - Long Dated USO Put Spread

    Block Trade Analysis - Long Dated USO Put Spread

    When I arrived in NY Thursday late Thursday night I ended up with a cab driver who sounded just like Joe Pesci. In fact when he started talking to me I thought it was coming from the video screen in the back seat so I leaned forward to mute the noise. However, the noise never ended… He asked what I do for a living and when options came up his very excited response was, “I want to buy oil options, it’s going to move and I want to know how to make some money when it starts to go back[...]

  • Technical Analysis & Charts | VIX | Education | Feb 17, 2015, 9:45 AM

    Textbook Breakout, Will It Confirm? - Weekly Market Outlook

    Textbook Breakout, Will It Confirm? - Weekly Market Outlook

    While most everyone knows last week was a good one for the market, it may not be clear just how eventful it really was.  The S&P 500's (SPX) (SPY) 2.0% gain last week carried the index to record highs and a record high close. On the surface it's technically bullish, so we'll take the clue at face value.  We'll also point out, however, most of the recent surges like last week's ended up turning tail pretty quickly.  We'll still need to keep things on a short leash until this breakout[...]

  • Market News | VIX | Futures | Feb 2, 2015, 3:20 PM

    Checking in on Oil Volatility

    Checking in on Oil Volatility

    Oil was the headline grabbing market for the last few months of 2014. For months the price of oil has continued to violate any sort of support levels that technical analysts can come up with. January’s average OVX close was just over 55. This was the highest average for a month since the tail end of the Great Financial Crisis in April 2009. The chart below shows the average daily close by month for OVX since mid-2007 through January 2015. The thing is, Oil has sort of vanished from the headlines.[...]

  • Strategy | Jan 6, 2015, 1:15 PM

    Back to the Future: Play Oil with USO ETF Options

    Back to the Future: Play Oil with USO ETF Options

    Crude oil’s precipitous drop from it’s June highs has yet to show signs of abetting, with U.S. Oil benchmark West Texas Intermediate (WTI) down over 3% again today following Monday’s downside move. Now trading below $50, oil has moved to a new five and half year low, a move estimated to save the average American over $1400 annually and bolster consumer discretionary spending. Continued strength in the USD and OPEC’s refusal to cut production would lead me to believe oil has[...]

  • VIX | Blogging Options | Trader Talk | Jan 5, 2015, 12:00 PM

    CBOE Mid-Day Update 1.5.14

    CBOE Mid-Day Update 1.5.14

    Volatility as an asset class iPath S&P GSCI Crude Oil Total Return (OIL) is recently down 60c to $11.61 as WTI crude oil trades below $51.  January call option implied volatility is at 67, February is at 62; compared to its 26-week average of 27. Energy Select Sector SPDR (XLE) is recently down $3.39 to $76.14. January weekly call option implied volatility is at 41, January is 34, March is at 32; compared to its 26-week average of 21. ProShares Ultra DJ-UBS Crude Oil (UCO) is recently down[...]

  • Market News | VIX | Trader Talk | Futures | Jan 1, 2015, 1:43 PM

    Oil Volatility in 2014

    Oil Volatility in 2014

    In 2013 it was gold, this year the price of oil took it on the chin and the result was the worst performance for the United States Oil ETF (USO – 20.36) since the dark days of 2008. There are all kinds of theories over what is actually going on in the energy markets. I’m going to keep mine to myself and focus on what the numbers say. With USO dropping 42% in 2014 and most of that coming in the fourth quarter the CBOE Crude Oil ETF Volatility Index (OVX – 50.24) reached levels not[...]

  • Market News | VIX | Trader Talk | Futures | Dec 20, 2014, 4:30 PM

    The Week in Gold and Oil Volatility - 12/15 through 12/19

    The Week in Gold and Oil Volatility - 12/15 through 12/19

    Gold volatility represented by GVZ dropped 5% last week and the price of gold as represented by GLD was down 2.25%. Now on to what people care about these days – The week over week price change for the United States Oil ETF (USO – 21.96) comes nowhere near telling the story from last week. From Friday to Friday USO was up 0.03 from 21.93 to 21.96. So why in the world is the OVX curve in backwardation and why was OVX up over 10% to close over 50.00 for the first time in over 3 years? Why,[...]

  • VIX | Blogging Options | Trader Talk | Dec 16, 2014, 11:43 AM

    CBOE Mid-Day Update 12.16.14

    CBOE Mid-Day Update 12.16.14

    Volatility as an asset class iPath S&P GSCI Crude Oil Total Return (OIL) is recently up 22c to $13.26 as WTI crude oil trades above $56.  Overall option implied volatility of 60 compares to its 26-week average of 25. Energy Select Sector SPDR (XLE) is recently up $2.09 to $75.49. December call option implied volatility is at 40, January is 35, March is at 33; compared to its 26-week average of 20. ProShares Ultra DJ-UBS Crude Oil (UCO) is recently up 26c to $11.39. Overall option implied[...]

  • Market News | VIX | Trader Talk | Futures | Dec 13, 2014, 1:00 PM

    The Week in Gold and Oil Volatility - 12/8 - 12/12

    The Week in Gold and Oil Volatility - 12/8 - 12/12

    I recall when I totally ignored Oil in this space for gold, my how things have changed.   USO dropped over 12% last week which places the fund down about 38% in 2014. The result for OVX, as seen on the right side below, was a jump of 45% and a move near all-time highs. The front month December future, which settles on the open Wednesday morning, finished the week at a 2.72 point discount to the index, which indicates to me that a quick move down in OVX (and stabilization of oil prices)[...]

  • VIX | Blogging Options | Trader Talk | Dec 3, 2014, 12:00 PM

    CBOE Mid-Day Update 12.3.14

    CBOE Mid-Day Update 12.3.14

    Volatility as an asset class Energy indexes and ETF option implied volatility decreases three-year highs as energy prices stabilize Energy Select Sector SPDR (XLE) is recently up 1.13 to $82.13. December weekly call option implied volatility is at 39, December is at 24; compared to a level of 27 from December 2 and its 26-week average of 18. Oil Services Holders Trust (OIH) is recently up 71c to $38.10. December weekly call option implied volatility is at 59, December is at 34, January is at 33;[...]

  • VIX | Blogging Options | Trader Talk | Dec 1, 2014, 11:56 AM

    CBOE Mid-Day Update 12.1.14

    CBOE Mid-Day Update 12.1.14

    Volatility as an asset class Energy indexes and ETF option implied volatility has increased on wide oil and gas price movement. Energy Select Sector SPDR (XLE) December weekly call option implied volatility is at 39, December is at 30; compared to its 26-week average of 18. Oil Services Holders Trust (OIH) December weekly call option implied volatility is at 64, December is at 41, January is at 37; compared to its 26-week average of 22. United States Oil Fund (USO) December weekly call option implied[...]