Can you trade options on OVX? I read an article from 2012 stating "OVX Index security futures will begin trading on CFE on Monday 26 March, and options on the OVX Index will begin trading on CBOE on Tuesday 10 April, according to a statement by CBOE Holdings." I can't find these options priced anywhere including my IB account. Can anybody shed some light on this situation for me?
I don't believe you can. I have also looked into this and found only an untradeable VIX-like index listed by the CBOE. There are no OVX futures or listed ETF, which you usually need to have listed options. The closest thing you could trade if you wanted to speculate on the "volatility of volatility" of USO options is options on the VIX. The problem is the VIX and OVX only have between a .3 and .4 correlation in general. Implied vol only highly correlated when crude (USO) and stock market (SPY) are moving in tandem.