How to Take Advantage of Volatility in Oil Prices
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The VIX is a great tool for understanding investor sentiment relative to stocks. If you are interested in understanding investor sentiment in other markets through a volatility index like the VIX then this article is for you. When the oil VIX hits extremes oil prices become more prone to reversals.
Unlike equities however, the oil VIX is positively correlated with oil prices because higher risk levels will increase oil prices rather than discount them. In the video, I will show you how the channel between extremes in oil market sentiment accurately predicted changes in the price trend of oil itself through This is particularly useful now as ovx options trading oil VIX is approaching another inflection point making an oil price increase more likely.
This is helpful for all traders because of the intermarket affects of an increase in oil prices. Higher energy costs will be a bad thing for stocks, good for bonds, bad for the USD and great for commodity currencies. The oil VIX is one more way to ovx options trading risk and increase profit opportunities. The materials presented are being provided to you for educational purposes only. The content was created and is being presented by employees or representatives of Learning Markets, LLC.
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