While forming õ sound, lips are partly opened and lower lip, even lower jaw is somewhat pushed forward. From English, consider the word 'no'. I you'd omit n from the beginning and 'u" from the end, you'd have something pretty close to Estonian õ. Note differing length of single and double õ. I have also added sample word containing a diphthong - two vowels. Note that both sounds are produced and heard.

Sample words: õlu, õige, sõda, võõras